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?

       

14 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
  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. 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

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