The property market in Italy- outlined

Despite the poor trend of economy and stock market the Italian property market has increased over the last 8 years. Property prices in Italy continue to increase by an average of 5%.
"Nomisma" predicts an increase for 2008 as well, between 3.8% and 4.3%
To confirm this there is an evident difference between the stock market and the property market- between January 2001 and January 2006 the MIBTEL went down - 8.24% while the property market rose 28.6%

The property market in Tuscany

In 2007 the Tuscan property market reached a turnover of about €9.3 million, an increase in business of 5% with a price increase of 6%.
Between 2001 and 2007 the turnover increased gradually on average 5.5% in Tuscany with a maximum of 6.1% in the principal cities between 2006 and 2007.

The analysis of the Tuscan market shows some interesting results. The most expensive cities in Tuscany are confirmed as Forte dei Marmi and Viareggio with prices of €12,000 and €10,000 per square metre respectively.
If we exclude these areas and Porto Ercole the quotation for a property with sea views is about €4,000 per sqm.
Concerning the city of Florence and its characteristic historical centre the price remains consistently at €8/9,000 per sqm.
Interestingly considering the report between price and profitability the investment in a typical Tuscan farmhouse is on average €3,500 per sqm. It is good to note that there is a strong prospective for profit by investing in a farmhouse apartment, where there is always high demand.
The strong growth of investment in "Buy to Let" properties with short rental contracts has sharply risen. Monthly rental contracts for coastal properties can demand up to €4000 in high season.

The Tuscan tourist property market - the second house

The market for a second home is still growing consistently thanks to the interest of foreign buyers- in particular English, American, Dutch and French buyers, with an increase in Russian buyers too.
The areas of high interest which seem to attract this type of investment are mainly around the coast or in small inland medieval villages which are considered are unique with their evocative landscapes ( Val d'Orcia, Montepulciano, Pienza, Montalcino).
The majority of requests are for apartments in the medieval centre, coastal areas, important art cities, farmhouses or tourist resorts.
Therefore requests are mainly for small apartments with a garden and sea view. This kind of property is a sound form of investment for "Buy to Let".

The principle buyers are Italian- mainly from Lombardia, Lazio and Emilia Romagna.
Italian investors are usually attracted to the coast to spend their summer months and weekends by the sea.
Foreign investors are usually attracted to the area of Siena, the Chianti hills and Val d'Orcia where the rural cottage market shows no sign of decrease.

Fonte: Osservatorio Immobiliare FIAIP