What’s behind the strengthening demand for new-build homes in Italy?
Luxury new projects are springing up across Italy as buyers seek traditional exteriors with modern comforts and new technology. Kate Everett-Allen talks to Knight Frank’s Aldo Flakstad to learn more
2 minutes to read
Italy may not immediately conjure up images of contemporary designed homes and cutting-edge eco-properties but there is a growing appetite from international clients for such properties and developers look to have got the memo.
“The specification of new homes being delivered in Italy is on a whole new level,” says Aldo Flakstad, Knight Frank’s Head of Residential Development in Italy.
“Turnkey, or ready-to-move-into homes, are in demand post lockdown, buyers want to spend less time and energy on a self-build,” Aldo adds. And the communal aspect of many of these new projects, whether a shared vineyard, members lounge or spa facilities, after two years of isolation, are an added draw. The ability to influence the layout and style of the property, approve the garden design or add in energy efficient features whilst leaving the heavy lifting to the developer is another attraction. In many of the developments the owner can have as little or as much involvement as they wish.
Some want purely a second home, others an investment and a number want a mix of both. “We’re seeing three key shifts,” says Aldo. “Firstly, yields are more competitive than they have been for some time. For a luxury home worth €1m a yield of around 7% is attainable as a holiday let assuming it is rented for up to 10-15 weeks a year.”
“Secondly, enquiries are from a younger demographic than we’ve seen previously, often 30 to 50-year-olds with young families,” he tells me. “Overseas families that are looking to relocate often want to be within 30-minutes of an international school, many will be looking to take advantage of Italy’s flat tax which enables Britons and other non-EU residents to stay permanently rather be tied to 90 out of every 180 days.”
“Finally, the quality of the services on offer are impeccable. From the gym to a concierge and from the members’ lounge to extra guest accommodation, developers and architects have listened to buyers’ requirements and responded,” Aldo concludes.
Knight Frank has six new projects across Italy’s traditional second home hotspots including Lake Como, Florence, Venice and Verona. Each offers a different slant on Italian living, from Palazzo Poste in Verona to Marina di Scarlino on the Tuscan coast.
Above photo Marina di Scarlino, Tuscany
In 2022, Aldo has noticed the time between exchange and completion is getting shorter. Buyers are keen to progress, there’s a degree of impatience as people want to move in and start enjoying their new home after two years of travel bans.
I ask Aldo, if there is one message you’d like to convey to Knight Frank clients what would it be. Aldo’s response was immediate “Italy has moved on since 2008. It is safe to invest here. Use a trusted advisor, preferably Knight Frank, and the process can be a lot smoother – and if you want to get involved in the design phase – it is an enjoyable and rewarding one too.”
Main photo Palazzo Poste, Verona