Spotlight: Italy

Italy 2017
La dolce vita

12 September 2017, by Paul Tostevin

Stability is returning to the Italian residential market. Transaction volumes are rising and prices are beginning to level out

From Dante to da Vinci, Puccini to Pavarotti, Italy is a country with a formidable cultural heritage. It boasts 53 UNESCO World Heritage Sites, more than any other country. It’s no surprise that people from around the world choose to take a more permanent stake in the country and buy a property so that they can live the Italian life.

 

Hard hit during the global financial crisis, Italy’s economy is emerging from a period of financial and political challenges. The country’s property markets suffered and residential prices fell by up to 30%. However, after several difficult years, stability is now in sight. Transaction volumes have risen 33% from their 2013 low, while prices are beginning to level out.

In the prime sector, there are high levels of stock. This makes it a buyer’s market and ‘best-in-class’ properties are in demand.

Italy’s status as a top visitor destination, coupled with the high-quality life it offers, will underpin its enduring appeal for generations to come.

▼ St Peter’s Basilica, Rome

 
St Peter’s Basilica, Rome

Summary

Transactions on the rise

Numbers of transactions grew by 18% in 2016, but remain 39% below their 2006 peak

A buyer’s market

Prime prices are 30% below their 2008 high. Sensibly priced properties are trading

International buyers

The international buyer base is broadening – Americans are a growing force

Search for income

Growth in the city-break market supports demand for short-term rentals in Italy’s major urban centres

Pricing outlook

Prices may stabilise next year as transaction levels rise


Articles from Spotlight: Italy – 2017

Italy overview

12 September 2017

Italy overview

After a series of difficult years, Italy may be entering a period of stability. We look at the rise in transactions, the signs of domestic growth and the wider international interest in the prime market

Three key cities

12 September 2017

Three key cities

We take a look at three cities playing a lead role in Italy’s residential real estate. Transactions are up and new incentives for HNWIs could stimulate the prime market

Regions of Italy

12 September 2017

Regions of Italy

Italy’s landscape is diverse, offering beaches, mountain ranges and fertile countryside. Second homes outside the major Italian cities see demand from a wide range of nationalities, with prices some 30% below their 2008 peak

Italy outlook

12 September 2017

Italy outlook

Italy’s economy is emerging from a period of financial and political challenges, but stability is now in sight

 
 

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Key contacts

Yolande Barnes

Yolande Barnes

Director
World Research

Savills Margaret Street

+44 (0) 20 7409 8899

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Hugo Thistlethwayte

Hugo Thistlethwayte

Head of
International Residential (Operations)

Savills Margaret Street

+44 (0) 20 7409 8876

 

Annabelle Dudley

Annabelle Dudley

Head of Italy & Spain Desk
International Residential

Savills Margaret Street

+44 (0) 20 7016 3890