博鱼体育集团

The housing market is picking up

Italy is known for its history, culture, and ice cream, but rarely has it been known as a hotspot for surging house prices. Instead, Italy has taken up residence at the bottom of 博鱼体育集团 Frank鈥檚 house price rankings over the last decade. But enter the pandemic stage left, and a market characterised by a wide choice of ailing properties and only moderate demand is getting an overhaul. Luxury house prices in Italy registered their strongest rate of growth in 2021 since the financial crisis, up 4% on average.

For the lockdown-weary buyer Italy delivers on all fronts. Space, views, culture, history, good food and a healthy lifestyle; all are in abundance. And for a new breed of hybrid worker, labouring under the dappled shade of a cypress tree is an appealing alternative to a cramped spare room, particularly for Vitamin D deficient northern Europeans.

Not surprisingly, a survey of over 1,000 global buyers listed Italy amongst their top five second home destinations, and for UK and US buyers Italy was in their top two.

The housing market is gaining momentum. Residential sales increased 22% in the first half of 2021 compared to the same period in 2019 and the discount achieved by the average buyer 鈥� the gap between the price marketed and the price paid 鈥� fell from 12% in 2019 to 9% in 2021 according to the Banca d 鈥橧talia.

But headwinds exist. The crisis in Ukraine may delay rate hikes as the European Central Bank looks to manage higher inflation without snuffing out the embers of economic growth. Plus, Italy鈥檚 high debt levels mean it is more exposed than its Eurozone neighbours to spiralling prices and the higher cost of debt.

Attracting investment

Italy isn鈥檛 resting on its laurels waiting for tourists and homeowners to recognise 鈥榣a dolce vita鈥�. Assisted by Prime Minister Draghi鈥檚 pro-business agenda and an innovative flat tax, Italy is going out of its way to attract inward investment. The country is already home to 17,359 ultra-high-net-worth individuals 鈥� those with more than $30 million and that figure is set to rise by 14% in the next five years.

Since 2017, residents, both domestic and international, can opt for a flat tax regime paying a single figure of 鈧�100,000 each year on all their non-Italian sourced income, instead of paying ordinary tax rates. The initiative is open to any new residents that have not been subject to Italian tax for nine out of the last 10 years.