How has the Italian residential market performed over the past year?
House prices in Italy are strengthening, following several years of subdued growth.
2 minutes to read
What’s driven activity this year?
Knight Frank’s Global Buyer Survey confirmed Italy was the fifth most popular global destination for international buyers considering purchasing a second home. The pandemic has shone a spotlight on outdoor living, the importance of health and wellbeing, time with family and friends as well as the benefit of reconnecting with nature, all key elements of an Italian lifestyle.
Unsure where to look? The Italian Lifestyle monitor is on hand to help. Knight Frank’s Research team have crunched the numbers to gauge how Italy’s top destinations compare when it comes to key lifestyle factors, from culture to leisure and from quality of life to accessibility.
What’s happened to prices in prime Italian markets?
Long defined by high inventory levels which resulted in softening prices, Italy’s prime residential markets are now registering steady annual price growth and contrary to the headlines, it’s not all focused on rural or resort-led markets, cities such as Lucca and Venice were amongst some of the top performers in 2021. We expect urban living to be back in the spotlight in 2022 as the world starts to recalibrate and buyers reconnect with all that cities have to offer, from art and history to culture and cuisine.
What’s the appeal of Italy’s flat tax for non-residents?
In 2017, a new flat-rate tax for international citizens wishing to become residents in Italy was introduced. Open to all nationalities, the government rules stipulate that any applicant must not have lived in Italy for nine out of the previous 10 years and they must own or rent a property in the country.
Applicants pay a flat rate of €100,000 per annum on all their non-Italian sourced income. The initiative can be extended to spouses and other family members at an additional cost of €25,000 per annum. Italy’s Ministry of Economy and Finance has published figures up to 2019 that confirm 683 applicants were successful in the preceding three years, a figure we expect to have increased significantly in the years since.
What trends have emerged?
TURNKEY PROPERTIES – new homes ready to move into are high in demand. Time-poor buyers are seeking hassle-free, minimal maintenance homes that enable them to recharge as soon as they arrive on the doorstep. Branded and managed residences are on the radar of such buyers, keen to take advantage of the amenities and services as well as the privacy and security that they offer. A scarce commodity in Italy, those that have come to the market in Florence and on the Tuscan coast have generated strong interest.
VIEWS – preferably the panoramic variety, are more sought after. Whether rolling Tuscan hills, lakeside retreats or a Mediterranean vista there is a desire to reconnect with nature. Some 55% of respondents to our Global Buyer Survey said views were more important to them when buying a property than before the pandemic.
