If we consider the other side of the Italian real estate market, we can see that property prices are significantly lower than in other countries with a similar standard of living to Italy.
According to numerous studies, it has become evident that every second investor is ready to invest from 15 to 40 million euros in Italian real estate, every fourth more than 40 million euros, and every third investor is ready to invest up to 15 million euros. Real estate in major cities such as Milan and Rome is in highest demand.
Among foreign investors, 20% are currently ready to purchase Italian real estate, 60% of foreign investors are ready to invest money in a profitable project as soon as it appears.
Residential real estate in Italy is in high demand in prestigious areas; here villas, houses and apartments are readily purchased where full renovation has been carried out and the right door choice has been made, as wealthy people are ready to invest in completed projects. Non-residential premises are mostly acquired in resort areas in northern Italy, office premises mostly in new business centers.
The average price of residential real estate in the Lake Maggiore area is 1.5-3 thousand euros per square meter, office real estate from 1 to 1.5 thousand euros, commercial real estate from 1.5 thousand to 3.5 thousand euros per square meter. In the province of Grosseto, the situation is as follows: the average cost of housing is 1.5-4 thousand euros per square meter, office real estate 1-4 thousand euros, commercial from 1.5 to 4.5 thousand euros per square meter. In the Adriatic Sea area, the average price of housing is 2.5-4 thousand euros per square meter, office real estate 1.5-2 thousand euros per square meter, commercial real estate from 2 to 4 thousand euros per square meter. In the Lake Como area, the cost of housing is 1.5-3 thousand euros per square meter, office real estate 1-3 thousand euros, and commercial real estate from 1 to 5 thousand euros.
Italian real estate is significantly lower in cost than real estate in Germany, France or England. This can be explained by the fact that construction in Italy is quite cheap, since all necessary building materials are not imported but produced right here. Moreover, Italian engineers and builders are considered the most highly qualified in the world.
Purchasing real estate in Italy is quite profitable, as the country has a stable economy, construction of new facilities is constantly growing, and one can get high returns when renting out property.
Investors invest their money in real estate in most cases for subsequent resale in order to make a profit. However, it should be kept in mind that real estate is subject to taxation.
In Italy, the cost of real estate depends not on the square footage but on the number of rooms and the location of the property. The view from the window, the presence of verandas, garden, courtyard in front of the house are taken into account. In the south of the country, apartment prices are cheaper than in the north; accordingly, the closer to the north, the higher the cost of housing. Also, when evaluating residential real estate, its technical condition and type of building are taken into account. On average, housing costs range from 500 euros per square meter to 5 thousand euros per square meter.
When purchasing real estate, it is necessary to pay attention to its degree of wear and tear, since it often happens that at a low cost of the property, additional funds need to be invested for restoration.
23.12.2011
PR