Do you have a property for sale in Italy? There is no question that Italian economy has suffered greatly because of the uncertain political situation in the country, but the property market hasn’t suffered all that much as a consequence. There are still many who want to buy property in Italy online.
There were 500,000 property transactions in 2016, which is much higher than in 2013, when there were 400,000 transactions. Of course, this is nowhere close to the high of 845,000 property transactions reached in 2008. That was a time when the Italian housing market was at its absolute peak.
Italy seems to be heading for a fast recovery. Mortgages are more easily available and there is enough housing stock to satisfy everyone concerned. But events such as the recent Brexit referendum and terror attacks across Europe are likely to have an effect on the housing market here. More importantly, there is a political crisis in Italy and nobody really knows who is in charge of the government. This is not good news for the housing market in the country.
So should you sell your property in Italy fast? That is really hard to say. The Italian property market has lost 30 percent of its value since 2010, while the housing market in the city of Rome has lost about 25 percent. Clearly, the housing market in cities such as Rome and Milan has held better than in the rest of the country.
Consider Rome. Rome is the most expensive housing market in Italy after Florence. Home prices in Rome have fallen by 2.5% last year and as of now they look relatively stable.
Interestingly, home ownership is very high in Italy, where 80 percent of the population are homeowners. That is why politicians in Italy are reluctant to raise property taxes on primary residences. Second homes are not taxed heavily either. Property taxes in Italy are very low compared to the United States, the UK and other European countries.
Certainly the resignation of Prime Minister Matteo Renzi towards the end of 2016 has been a negative for the property market. Renzi was a business friendly prime minister and a popular leader who enjoyed excellent credibility with investors. And then he was gone, just like that.
As a local analyst, Ms. Giorgolo Spinola says: “If every time we would have a political change, it would impact us, then we would be in a real mess.” This has certainly affected the housing market.
There is also a lot of uncertainty over the Five Star Movement, a nationalist political party which could come to power in the forthcoming general election. Investors dread the prospect as the #1 agenda of the Five Star Movement is to get Italy out of the European Union.
If this political formation comes to power, there are likely to be severe implications for the housing market in Italy. Investors are not likely to be too pleased with such an outcome, to say the least.