Since the financial crisis hit Italy, property market values have dropped significantly: the volume of the transactions decreased as well as the prices while the time to complete a sale increased. On the other hand, European financial recover (2015-2017) has also involved the Italian economy, so the real estate market.
House prices have shown important signals of stability and the volume of the transactions have raised up to 60% (2019).
Foreigners investing in the Italian property market have doubled in the last 3 years (2017-2019) contributing to make the Demand more heterogeneous and the market more dynamic.
COVID19 pandemic (2020) has affected the world ecomony significantly, leading all real estate markets both to a general reduction of the prices and transactions; banks have also taken on a more conservative attitude by granting a lower number of mortgages even if they still remain by far the most competitive in all Europe.
These market conditions represent the ideal scenario for cash-buyers looking for a stable investment in Italy.
A smart investor can expect:
1) Affordable market conditions (when buying)
2) Very high Capital growth over the long term (20-30% return in 5 years)
3) Very attractive Rental income (6-10%/year)
Local banks lend money to the residents at very affordable rates, and the Government has approved new legal measures to make the transactions more transparent and safe.
Real Estate and Inheritance Tax are the most convenient among the most developed european countries making the investment more susteinable in the short, medium and long-term view. New Tax incentives for non-residents have been approved.
(RETURN OF INVESTMENT)
Year yields have become extremely attractive for both the long-term rent and those very frequent cases of farmhouses converted into charming B&B.
This scenario reflects a situation where the damages of the last decade crises are still evident in most areas of the country.
“Ad hoc” buying programs and Tax Incentives for foreigners went approved, opening the doors to different options to buy real estate in Italy. We are happy to say there's finally an appropriate legal solution for each investor need.
Whether you are looking to invest in the Italian real estate market for personal purpose, investment or mixed use (living+rental) Clemente Law Firm has the in-depth knowledge to guide you through the entire buying process tailoring the most appropriate legal solution on your needs.
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