Top quality Italian homes with ready to move in charm

For buyers looking for an Italian holiday home, turn-key properties – those that require no upgrading or renovations - have an obvious appeal. You have a property to enjoy as soon as you move in without the hassle, stress and costs of planning permission and building work. No unpredictable refurbishment costs, no unexpected delay, no uncertainty about the finished product.

The desire for a turn-key home is a growing trend that Andrew Blandford-Newson from Knight Frank’s International Residential Department has seen in action right across Italy.

“The days of falling for a ruin and devoting endless resources, time and money, to restoring it are largely a thing of the past,” he says. “Clients, especially younger ones, have less patience with the idea of renovation. Escalating construction costs are certainly a factor, but so too is the fact that more turn-key homes are now available. Developers have noted demand for high-quality, contemporary properties, often within historic buildings, from buyers who are accustomed to a high standard in other global cities.”

Alluring tax rates

Wealthy buyers are also looking closely at Italian tax rates, chief among them a flat tax introduced in 2017 that applies to both foreign residents and Italians who have lived outside of the country for at least nine years. Under this tax regime, ultra-high-net-worth individuals pay a single flat rate of taxation, €100,000 per annum, on foreign income in return for Italian residency. This week, August 2024, Giorgia Meloni, the Italian PM, made a surprise announcement that the flat rate to be paid would double, making it now €200,000 a year for new applicants.

The Financial Times reported that as of August 2024, 2,730 individuals have signed up for the flat tax with a further 90,000 people, mainly Italians, benefitting from an expat scheme that gives a 50% to 90% reduction on taxable Italian income for those moving back to Italy, depending on the location where they move.

“With global wealth increasingly mobile, driven by geopolitical tensions, economic uncertainty and a series of elections many of which are likely to trigger significant tax and policy changes, Italy is poised to be a focal point in this shifting landscape,” says Kate Everett-Allen, Knight Frank’s head of European Residential Research.

Knight Frank’s newly released Italian Homes 2024, shows that prime prices across Italy grew by an average of 4% last year, leaving them 16% higher than pre-pandemic levels of 2019. The locations that saw the largest price growth in 2023 were Lake Como and Florence, with Lucca and Milan topping the rankings over the last five years.

Lake Como and Milan

Milan is Italy’s wealthiest city, a centre for fashion, business and finance with a substantial number of Private Equity firms based there luring in international staff. The city’s popularity is shown by reports in The Financial Times last month that demand for school places at the prestigious international school St Louis has soared. But with a highly mobile and international population, Milan can feel transient and as property stock levels are low, many buyers opt to look outside the city.

“Many clients start their search in Milan but discover getting a property with the space they want is challenging,” says Blandford-Newson. “For them, the answer is to look around Lake Como. It’s within one hour of Milan and an international airport, a top priority for many, and there are excellent rail links from Como Town, the epicentre of life on the lake which combines authentic Italian charm and an international outlook. A home within 30 minutes of Como Town has clear appeal, especially for families with children at the good international school there. Lake Como is also close to the Swiss border, with access to more well-regarded international schools.”

In Como Town, two and three bedroom turn-key apartments in Palazzo Parini, an elegantly restored palace, start from €594,000 and come with garaging priced from €125,000.

Away from Como Town, the sunnier western branch of the Lake is most sought-after, prestigious villages there including Cernobbio, Leno and Brienno. On this favoured western branch, between Como Town and Cernobbio, a newly completed three floor modern villa with wide lake views, a generous terrace and outdoor space is for sale at €7,200,000. The turn-key aspect and proximity to Como Town are a large part of the appeal, along with seven bedrooms, the potential to add a swimming pool and garaging for four cars.

Florence

The narrow stony streets and surrounding green hills of the culture filled capital of Tuscany are perennial favourites with second-home buyers and where some of the finest top-quality Italian turn-key conversions first appeared. That includes Palazzo Tornabuoni, a lavish five-year refurbishment of a 15^th Century palace that was once home to Pope Leo XI, into contemporary apartments based around a private members’ club with service provided initially by Four Seasons Hotels. These sold swiftly when launched over 15 years ago.

“We are currently advising developers on a number of potential projects in Florence which look to raise the bar in the quality and style of homes they offer,” says Blandford-Newson. “These properties are at the top of the wish list for Italian and international buyers who are prepared to pay for a turn-key home that offers excellent facilities and management.”

Lucca

The walled town of Lucca, with its intimate squares and marble fronted churches, is within forty minutes of Pisa airport and half an hour of the coast, offering more space and a lower price point than Florence. Well-renovated apartments in the historic centre start from around €1 million but most second home buyers typically look to the peaceful hills outside the city. Three to four bedroom villas in Camaiore, thirty minutes northwest of Lucca and within ten minutes of the beaches of Versilia, are around €1-€1.5 million while closer to the city’s Renaissance walls, expect to pay €5-€10million with larger estates reaching over €10 million.

On a level plot a few miles from the centre of Lucca and with wonderful views of the distant mountains and the city itself, Villa Holzer is a handsomely restored 18^th Century villa in level grounds of over 10 acres. The elegant property, for sale at €6,300,000, combines up-to-date technology with carefully restored original features, air conditioning and underfloor heating with period mouldings, and has eight bedrooms, a swimming pool and fully restored chapel adjacent to the villa.

Discover more Italian homes for sale or contact Andrew Blandford-Newson directly.