_International Property Digest: Why historical cities in Italy are growing in popularity
Few countries deliver historically beautiful and culturally dynamic cities as effectively as Italy. There’s Florence with its narrow Renaissance streets little changed from Medici times and Venice with a sense of arrival every bit as beguiling as it was four centuries ago. And of course ancient Rome, where a home in the historic centre lets you start the day with an espresso among the flower sellers in Campo de’Fiori and end it with a recital at the Teatro dell’Opera.
Then there’s lovely walled Lucca, business-minded Milan with its forward-facing contemporary design and Siena with its majestic Piazza del Campo. All these cities combine iconic art and architecture with a twenty-first century lifestyle, perfect for international buyers who increasingly want a city-centre home where they can become immersed in Italian culture.
Living in Italy
“The move to city living began several years ago but recently has noticeably gathered pace,” says Bill Thomson, Chairman of Knight Frank’s Italian Network.
“Italy’s historic cities provide great beauty, history, food and culture all close at hand. Buyers are turning their backs on the traditional dream of the rural good life for the convenience of city living.”
This desire for city living combined with a growing reluctance from buyers to undertake their own renovation projects has seen demand rise for high-quality homes. However after a decade of caution with little development, stock is low in most cities warns Mr Thomson:
“There are simply not enough properties to meet demand at present but fortunately we are seeing more investment in development now. Next month we launch an exciting development in an historic building in the heart of Florence with homes serviced by a five-star hotel brand. Developments serviced and maintained by leading hospitality brands are a natural extension of the growing desire for convenient city homes.”
Renting and buying property in Italy
A city property can also provide a longer rental season, and therefore stronger rental yields, than country homes. Florence, Venice and Rome attract tourists year-round and all have international airports and good rail links. And for owners who want the best of both worlds, leaving compact Florence and Lucca for day trips to the surrounding beautiful Tuscan countryside is all part of the charm.
Homes currently on the market include a beautifully presented three bedroom apartment over two floors of a palazzo in the medieval heart of Lucca steps from the Piazza San Michele and overlooking the birthplace of composer Puccini for €600,000.
In Venice a light and airy Dorsoduro apartment overlooking both Giudecca Canal and Palazzo Fortuny is €1,400,000 while a beautifully restored sixteenth century Renaissance palazzo apartment with a private garden, a true Venetian rarity, six bedrooms and an exquisite piano nobile is €12,500,000.
As with many cities around the world, the inexorable rise of Airbnb has led to a shortage of smaller apartments for sale as landlords find it profitable to rent them for short-term stays.
"Once governments find a way to successfully tax the profits from these short-term lets I believe there will be a flood of lower priced apartments, around €300,000, back on to the market,” says Mr Thomson. “My advice is that a city apartment investment at that price point could be perilous and buyers should be wary.”
For further information on Knight Frank’s Italy portfolio contact Mark Harvey, Head of International Sales.