A
Alessandro
New Member
In the last decade Italy - like the majority of the European countries - has faced a serious financial crisis with significant consequences on the real estate market; this circumstance has been completely new for the Italians who had been traditionally used to invest in real estate as a secure escape and profitable long-term horizon for their savings.
Actually the counter-value of the market is the lowest since the early seventies.
Residential property price dropped about 30%, with specific hits of -50/70% in some Regions in the South, Center and North-East.
The related domestic rental market also shows significant decreases, mainly linked to the loss of purchase power of the population; Exceptions are represented by the Milan market, an international modern city able to attract investments and young quality immigration.
Property tax has generally increased, but the owner of the "first home" (Prima Casa) is exempted to pay any tax.
Rental Tax can be elected as 21% (Cedolare secca - Flat tax) of the year rental income.
The average timing to conclude a deal stays between 3 and 12 months, depending on the eventual issues disclosed by the legal due diligence and/or the length to get a mortgage; Banks in fact are still prudent to lend money on the property market, as still the national economy didn't recover completely.
On the other hand Italy is between the world top 3 countries with the highest private saving, so the market can be potentially still very liquid and promptly reactive in case of recover.
Plus it has to be noticed the country presents "genetic" giant touristic potential, which makes of it a strong Vacation Rental market for the all year round.
The legal system is very strict and the purchaser can buy properties safely.
When it comes for a foreigner (non resident) to buy a property in Italy, the real problem is represented by the impossibility to get a mortgage from a local bank; very few exceptions can be observed, but still an inconsistent number to be considered a solution for the buyer.
This means the purchase with the traditional method (actually the only one proposed abroad) is a conservative solution mainly addressed for the cash-buyer.
Recently a new Rent to Buy Law has been approved and totally implemented in the legal system, offering this way an alternative and more convenient solution to own a property in the Bel Paese.
This juridical instrument may also match the needs of the property Investors, generally characterized by a business profile rather than the classical one of the "second home buyer".
Other interesting opportunities can be found in the property auction/ foreclosure, off-plan development and other cases of Vendor finance, but indeed these segments of the market are business oriented niche suitable for specific kind of investors.
I believe the real estate market is set to recover for the traditional regional well performing economy, while distressing scenario will be still present in the areas with a marginal economy.
In other words investing today in the Italian real estate market can be a remarkable opportunity, but it is needed a strong knowledge of the territory and a modern approach in the purchase (alternative buying solutions).
Actually the counter-value of the market is the lowest since the early seventies.
Residential property price dropped about 30%, with specific hits of -50/70% in some Regions in the South, Center and North-East.
The related domestic rental market also shows significant decreases, mainly linked to the loss of purchase power of the population; Exceptions are represented by the Milan market, an international modern city able to attract investments and young quality immigration.
Property tax has generally increased, but the owner of the "first home" (Prima Casa) is exempted to pay any tax.
Rental Tax can be elected as 21% (Cedolare secca - Flat tax) of the year rental income.
The average timing to conclude a deal stays between 3 and 12 months, depending on the eventual issues disclosed by the legal due diligence and/or the length to get a mortgage; Banks in fact are still prudent to lend money on the property market, as still the national economy didn't recover completely.
On the other hand Italy is between the world top 3 countries with the highest private saving, so the market can be potentially still very liquid and promptly reactive in case of recover.
Plus it has to be noticed the country presents "genetic" giant touristic potential, which makes of it a strong Vacation Rental market for the all year round.
The legal system is very strict and the purchaser can buy properties safely.
When it comes for a foreigner (non resident) to buy a property in Italy, the real problem is represented by the impossibility to get a mortgage from a local bank; very few exceptions can be observed, but still an inconsistent number to be considered a solution for the buyer.
This means the purchase with the traditional method (actually the only one proposed abroad) is a conservative solution mainly addressed for the cash-buyer.
Recently a new Rent to Buy Law has been approved and totally implemented in the legal system, offering this way an alternative and more convenient solution to own a property in the Bel Paese.
This juridical instrument may also match the needs of the property Investors, generally characterized by a business profile rather than the classical one of the "second home buyer".
Other interesting opportunities can be found in the property auction/ foreclosure, off-plan development and other cases of Vendor finance, but indeed these segments of the market are business oriented niche suitable for specific kind of investors.
I believe the real estate market is set to recover for the traditional regional well performing economy, while distressing scenario will be still present in the areas with a marginal economy.
In other words investing today in the Italian real estate market can be a remarkable opportunity, but it is needed a strong knowledge of the territory and a modern approach in the purchase (alternative buying solutions).