Italian property market analysis
Property prices in Italy rose significantly in the 1980s in most areas due to high demand for second homes from foreigners and Italians. However, as the recession hit Italy in the late 1980s and early 1990s, prices fell as buyers disappeared. During the recession most Italians simply refused to accept the lower market prices and only sold if they were forced to do so. Prices were also maintained by the cautious lending policies of Italian banks, which led to less repossession than in some other countries.
In 1998 the situation got better due to entry of foreign lenders into the mortgage market, which made home loans easier to obtain. Since 2002 the poor performance of stock markets worldwide has led to a marked increase in investment in Italian property (as in many other countries) and the property market is currently booming.
Property prices in rural areas of Italy
The cheapest prices for Italian property are in rural areas except popular areas in Tuscany which costs between 450 and 2000 euro per square meter. Although you can buy a several million euro’ villa or a large country estate, it is possible to buy a renovated village house or a one or two-bedroom apartment in a small town for 60000 euro. In many areas old village houses in need of complete restoration can be purchased for 40000 euro, although you should expect to pay two or even three times the purchase price in restoration costs.
Property prices in Tuscany
Tuscany is by far the most popular and expensive region for country homes among foreigners, especially the so-called ‘golden triangle’ bounded by Florence, Sienna and Volterra. Much of Tuscany is absurdly expensive, but in areas such as Lunigiana, Mugello, north of Lucca and around Arezzo, prices are around half those in the more expensive areas. However, if you are looking for a country property in an attractive area, you will find that in the Marche and Umbria prices are around 30 to 50 percent lower than the most expensive areas of Tuscany.
The most expensive Italian properties
Prices in the major cities vary significantly. The most expensive property in Italy is found in Milan, Venice and Rome. Here a three-bedroom apartment can cost over 400000 euro. The prices in most cities in typically from 700 euro per square meter for old unrenovated properties and up to 4000 euro per square meter for new or renovated properties. It is also noteworthy that in cities and towns, garages and external parking lots are usually sold separately and may cost around 25000 and 12000 euro.