Predictions for 2019: What Will Happen to Italy’s Property Market?

| January 23, 2019

Haven’t you found your dream home for sale in Italy yet? Don’t panic, you are still in time to take advantage of the great opportunities that the Italian real estate market has to offer.

Let’s look at what to expect this year.

1. Property prices forecast to stabilize in Italy

Average Europe property prices increased by around 4.3%.

According to Eurostat the statistical office of the European Union the recovery in house prices is practically a widespread phenomenon in all EU countries. Slovenia (+ 15.01%), Holland (+ 10.2%) and Ireland (+ 9.1%) have the most significant increase in the third trimester of 2018 on annual basis; compared to the previous trimester the greater growth were registered in Holland (+3.3%), Malta (+3.1%) and Croatia (2.8%).

What about Italy?

In the last seven years many European countries are not only out of the real estate crisis, but they have registered also a great increase of house prices. In Italy the sales have raised, however the prices are still blocked.
The market is different, we find a recovery in many big cities, while the rest of the peninsula still struggles.
Prices have decreased of about 30-35% compared to the beginning of 2008, in a slow decline, while in many European countries, such as Spain or Ireland, a violent collapse in prices was followed by a substantial recovery.

The latest update of ISTAT the national institute for statistics  data for the third trimester of 2018 registered a decrease in the Italian house price index by 0.8% compared to the previous trimester and to the same period of 2017.

But there are promising signals for a slow recovery in the imminent future: Milan have already registered a trend reversal, being the only one with a positive price variation. Other main cities will follow this trend in 2019.

Very convenient for those who want to buy a home in Italy, isn’t it? As a matter of fact many people are taking advantage of this very favourable moment. The demand for houses increases, both by those looking for a house to move in and by those searching for an investment, whether Italian or international buyers.

2. Mortgage rates still very convenient

Achieving the dream of buying your ideal property in Italy has become even easier for the vast majority of those who need a mortgage thanks to historically low interest rates. They will probably stay at the same level for a couple of years.

This will definitely help those who need a loan.

3. The hottest real estate markets to watch in 2019 in Italy

A question springs to mind then, where is it better investing in Italy in 2019?If you’re looking not just for a new home but a new town, we’ve got some ideas for you.

    1. Le Marche – How about heading towards the Centre of the ‘boot-shaped’ country? The region has been included by the Forbes in the list of the best places to retire abroad in 2019. It was once again named among the best places for a good retirement after a lifetime of work.
      Known as “Italy in one region”, this wonderful area of the country has something for every taste: high mountains, long sandy beaches and charming villages.
    2. Golfo Paradiso – Liguria is not only Cinque Terre, you just need to continue along the coast to find Golfo Paradiso. Less known, but equally wonderful, this area of Liguria can offer a peaceful and still unspoilt corner to enjoy. Hidden gems like Recco and Camogli are waiting to be discovered and local cuisine will enchant you with trofie al pesto and focaccia sottile al formaggio.
    3. Matera – as European Capital of Culture in 2019, it is the ideal place to find your perfect retreat if you haven’t already found it. If so it is definitely a place to visit this year. Its breathtaking scenery will leave you speechless. Full of history and now also rich in events celebrating the award.

      Where are you heading for?

       

25 thoughts on “Predictions for 2019: What Will Happen to Italy’s Property Market?

    1. Gate-away.com

      Hi Joseph,

      Abruzzo is quickly recovering from the quakes that hit the territory and what is more it has so much to offer that also non-Italian buyers and travellers are choosing the region as their favourite destination to buy a second home or for spending their holidays.

      Abruzzo is definitely worth a visit!

      Reply
  1. Fred Freely

    There are even earthquakes in Manhattan. At least ANYWHERE in Abruzzo there isn’t a nuclear reactor 14 miles away.

    Reply
  2. Heather Newham

    I have a property in Tuscany which lost value in recent years. What are future prospects? It’s a medieval 3 bedroom place with stunning views in the Historic Centre of a small northern Tuscan town, once a property hot-spot.

    Reply
    1. Gate-away.com

      Hi Heather,

      Property prices in Italy are still lower than about 10 years ago and they are not rising a lot compared to what is happening in the rest of Europe. This makes of Italy a very good investment for overseas house hunters. As a matter of fact the number of international potential buyers interested in the bel paese is growing year after year with Tuscany as one of the most popular destinations.

      All the best,

      the Gate-away.com team

      Reply
  3. Julia Tollefson

    I own a property in Abruzzo, it was valued at it’s lowest at only 50,000 euros (it’s highest 350,000 euros!), at the beginning of 2018, it’s a big 1200sqm, fully restored, stunning 4 bedroomed house near Teramo, with a balcony that over looks Gran Sasso, is there an average price per metre in this area that would give a more realistic value as there is a vast difference?

    Reply
    1. Gate-away.com

      Hi Julia,

      You should ask an estate agent for an evaluation of the property because the price can vary greatly on many factors, such as the town where the property in situated, and where exactly in this town, etc.

      Reply
  4. Tom

    After this recent earthquake I would think house value will drop . Im thinking of retiring to sicily but cant help but to rethink with earthquake unless house value drop enough to take the risk of moving there .

    Reply
    1. anna saunders

      I’m just buying a place in Trapani. It’s a long way from the earthquake! It’s worth checking out west Sicily too.

      Reply
  5. Martie de Beer

    Where would you recommend we buy for €100 to get the best income? This is for buy to let. Perhaps an apartment for students at a place where it can be let to tourists during the university holiday…? We are thinking of buying 3 slighter cheaper ones instead of more 1 expensive one. Suggestions will be appreciated.

    Reply
  6. Frans Cassar

    Hi,

    Recently I travelled through the northern part of Tuscany, more precisely the Comune of Fivizzano area accompanied by a property consultant to view some country houses/cottages. One particular property is of interest to me and my wife, not highly priced (app Eur 175k), having 3 bedrooms, courtyard and a sizeable outdoor area of app 750m2. Can I have your view on having such a property as a holiday home, with the possibility of some rental income?

    Thanks
    Frans

    Reply
    1. Gate-away.com

      Hi Frans,

      The Lunigiana area that includes the town of Fivizzano is growing in interest among international home buyers looking for a property in Italy. So some chances are you could rent it out to one of them while looking for their dream home like you’re doing now. Also it is quite close to La Spezia which is a majour town. Also you need to consider how much tourism the town attracts and if the property is close to services.

      Reply
  7. Jean Wolfenden

    Where in Tuscsny would be safe to buy? I’d like s small house inss village or rural location. How does Brexit affect the dituation regarding renting, buying or flights?
    my nrw rmsil sddress is:jwolfenden2016@gmail.com

    Reply
  8. Madeline Breese

    Hi,
    I’m looking at buying a property in Puglia near Ostuni. I’d appreciate your advice on what the reality is between asking price for a house and offer/sold price…for example in the UK on a £350k house you would always offer 10-20% below asking price…is this similar in Italy?
    Many thanks,
    Maddie

    Reply
    1. Gate-away.com

      Hi Madeline,

      This depends on how much/if the property owner is willing to negotiate on the price. To have an idea about prices in the area you are interested in, you could compare the listings you find on our website. In the municipality of Ostuni average prices are about € 1,500/m² but it could vary greatly on the condition of the property, location, etc.

      Reply
  9. Steven cole

    Hi,

    I’m look at buying a 3/4 bedroom villa with pool in Carovigno. Would you say this area is a good investment? I want some where I can rent as holiday let & visit myself every now & then.

    The other option I am looking at is Porto Cesareo as have heard the beaches are nicer this side? Do you know which area is best for rentals & are the beaches near carovigno nice?

    Thank you for your help.

    Thanks
    Steve

    Reply
    1. Gate-away.com

      Hi Steven,

      Puglia in general, but especially southern part of the region, is one of the most sought after areas of Italy by tourists and potential buyers looking for a second home. So it could be a good investment.

      Porto Cesareo is very famous for its marvellous beaches.

      Take a look at the properties currently for sale on Gate-away.,com in Porto Cesareo:
      http://www.gate-away.com/property_region.php?city=PORTO+CESAREO

      and Carovigno: http://www.gate-away.com/property_region.php?city=CAROVIGNO

      Reply
  10. Matt

    Hey,
    After reading your post and reading the comments, I assume that Italy is still a place where people want to go, which is great, because it is a beautiful country.
    I saw however that in the article, some regions are left out. By that I mean the south ( Campania, Calabria, Basilicata etc). I’m looking to buy a little property on the costa del Cilento ( in Campania, beneath Salerno ). Do you have any recommendations on that part of Italy? And buying in Italy in general? Do you have “hidden” costs?
    I’m thinking of a buy to let and self use as a holiday home.
    Thanks in advance.

    Matt

    Reply
  11. Kim

    We have been to Zambrone, Tropea and Ricadi(Capo Vaticano) for 3 years in a row. We love this area! It is not overdeveloped but is being developed. The area of Zambrone has a lot of new developments and houses going in. The beaches are beautiful and the coastline is magnificent! Pizzo is also a nice town but the beach gives more of a bay like feel, small cove like beaches, not as nice as Capo Vaticano! We are going again this month to look at homes, condos to purchase. It is a hidden gem! Most vacationers and owners are Italian, German, British, Skandinavian, Russian. However Americans are slowly starting to visit these areas as well. We stayed at a beach front resort for 37.00 euros per night, nice pool, restaurant on site, its own beach! The food and drinks here are cheap and you can find local produce and fresh caught fish everyday at market. It will be our part time retirement home in a few years! The people are very friendly and we find someone who can speak English most places we go. We use google translate on out phones if we need to.

    Reply
  12. Mike Serrao

    Hello,

    I am travelling to Italy to view a property on the western shore of Lake Como, about 5 minutes drive north of Menaggio. I have been in contact with the agent for some time now, and via the net I have narrowed the options down to a single waterfront property. It’s a completely refurbished apartment of approximately 145 square meters of living area that comes with a 10 year building guarantee.

    Its costly, at around Euro 6,500 per square meter (living area) before associated purchase costs. Being right on the water’s edge is obviously sought after and commands a premium price.

    My question is whether property at Lake como a sound investment at current price levels and is it worthwhile paying 25% plus premium for a “new” property on the waters edge? This despite the fact that it doesn’t have a parking garage or parking space included in the cost.

    Many thanks
    Mike

    Reply
    1. Gate-away.com

      Hi Mike,

      Lake Como is one of the most sought after areas of Italy among those looking for a house for sale in Italy. If it’s a new property the value is higher of course. Also, the properties located close to the water are more expensive. And consider that property prices in Italy now are very much lower than 10 years ago. So this is definitely the perfect time to buy and we think that lake Como is a good investment.

      All the best,

      the Gate-away.com team

      Reply
  13. Kimberly Stewart

    We’re buying a sea view 2 bed, 2 bath villa, built in 2005, with a stunning wide sea view, up in the hills of Zambrone in Calabria, near Tropea. They were asking 195,000, we’re getting it for 145,000, 6,000 sq ft lot! This area is nice, we’ve been 3 times, 2 weeks each time. We have looked at villas and apt’s in Zambrone, Parghelia, Tropea and Capo Vaticano area. Santa Maria is nice as well, the bay is beautiful and there are affordable prices here too. We wanted to be close to Tropea so Zambrone won! We are using The Property Organiser out of London for our search and the sale process. There are beautiful new villas and apt’s in Zambrone, very affordable and its a nice town with a beautiful beach with beach bars and restaurants. Tropea is a year round town as well as Pizzo, which is about a half hours drive. There are great deals to be had in Calabria as well as Puglia, but Puglia does not have the dramatic coastline that this part of Calabria does.

    Reply
    1. Andrea Bry

      Hello Kimberly,
      We too are looking at property in Zambrone. We are one month away from our 3rd viewing trip.
      Any advice and insight into the buying process would be greatly appreciated!
      I’m happy to hear how much your price was negotiated. I wasn’t sure.
      Where are you from, the UK?

      Reply

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