Italian property prices continue to appreciate in 2008
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News on Italy
2 July 2008
Italy’s property sector is expected to escape the market boom and bust cycle that has afflicted other countries such as Spain, according to property firm Cluttons.
After seeing slowing average price growth of 4% in 2007 from a high of 10% in 2004, the estate agency forecasts that Italian property prices will appreciate modestly this year.
Since the mid 1990’s prices have risen continuously but at a slower rate than in those markets which are now facing the real prospect of price reductions during 2008. The company reports that the average price of a home in Italy appreciated by 102% over the past decade, compared to 202% for the UK, 220% for Ireland and 195% for Spain.
Roger Coombes, manager, Cluttons Italy said: “Italian home ownership stands at 80% which is similar to the UK but mortgage debt represents less than 20% of GDP against 80% in the UK. This suggests scope for the development of mortgage products, something that overseas investors should find of interest.”
British demand for property for sale in Italy has waned slightly in recent months in light of the strengthening euro against the UK pound. However, the Italian market continues to attract a high volume of international buyers, with one research institute predicting that one in five property sales will be by a foreign buyer in 2008.
Cluttons comments on the following regions:
Tuscany
There is a wide range of property for sale in Tuscany. Prices are among the highest in Italy. Luxury apartments in the centre of Florence or Siena cost around € 8,000sqm (£6,362sqm) while a 5 or 6 bedroom restored farmhouse in the Chianti area with its own small vineyard and swimming pool will be priced at around €3m (£2.39m).
Umbria
Property for sale in Umbria offers excellent value for money. Around Lake Trasimeno it is possible to find 5 bedroom restored farmhouses from €1.25m (£1m) to €2m (£1.6m). Ruined farmhouses for restoration in attractive positions can be found for €500 to €700sqm (£556sqm). With good quality restoration costs at around €1,500sqm (£1,192sqm), this makes restoration a viable prospect.
Le Marche
Historically and culturally the region has much to offer. Inland, the ground rises towards the Apennines where many attractive locations can be found and a typical 3 or 4 bedroom farmhouse can be bought for under €1m (£790,000).
The Amalfi coast
The area extends from the Gulf of Naples to the Sorrentine peninsula and south along the Amalfi coast, including the islands of Capri, Ischia and Procida and offers all the ingredients of the quintessential romantic Italian experience. A villa in need of modernisation will cost from €3m (£2.39m) while modernised luxury villas start at €7m (£5.57m). Historical properties in the most desirable locations can reach up to €30m (£23.9m).
Coombes added: “Even in the current softer international property market, prices on the Amalfi coast are rising at around 10% a year.”
