NEWS » 5.5% decline in average price of Italian Houses
5.5% decline in average price of Italian Houses
It might be the right time to buy a property in Italy. In 2016 the average prices of Italian houses declined by 5.5%.
The last 8 years of economical crisis have influenced the real estate market in Italy, causing a significant fall in Real estate property values. Average prices have dropped by 30%, with suburban and less-appealing locations being more affected (down 50%). Therefore, over the last two years, interest in real estate purchases has been renewed, leading to more transactions and mortgage applications.
However, prices change quite significantly according to the area, and there might be more than 14 percentage points separating the most attractive and popular parts of the country from less known destinations.
In 2016 the glamorous Lake Como area saw a price rise of 1.2% compared to the year before due to its proximity to Milan and the Swiss border.
Prices in Rome, Milan, Florence and Venice have seen a sharp decline in the last year, but are now slowly recovering. In Rome prices haven't changed in the last year but in Milan they were – 1.5%, in Florence they were - 2% and in Venice they were - 3%. In some areas, such as Forte dei Marmi, located in the province of Lucca, prices slipped by 13%. In Portofino in the south east of Genoa prices were -11%. In western Liguria they were -1%. In Val d'Orcia and southern Tuscany they were -11,1%, in Maremma -9.5 but in Lucca and Pisa they increased by 0,5%. In the Chianti area they were -7%, in Umbria they were - 8%, while on the Costa Smeralda they were -5% and in the Argentareo area – 9.2 %.
While British buyers are finding Italy and the wider eurozone more expensive, on the contrary euro buyers are taking advantage of the Italian real estate market. Figures from the Italian Revenue Agency show that, over the first nine months of the year, there was a 20.3% average increase in real estate transactions. According to “Nomisma”, the observatory on the Real Estate Market, 517,164 deals took place last year (a 16.3% increase over the year before). Should the scenario remain so positive, 2017 should reach a total of 552,602 sales (a 6.9% increase over 2016).
The 2016 year-end estimates have shown that sales have increased by 57,000 transactions (+16.3% more than 2015). For 2017 is expected an increase in property prices (between 0 and +2%) but only in big cities. From 2014 residential real estate sales have continuously grown. The residential market, which rose in 2016, is expected to grow to more than 550,000 sales in 2017, that would be a 7% increase over last year.