Italian real estate market: dynamics of changes in 2020

In the year since the start of the Covid-19 pandemic in Europe, the Italian residential real estate market, like many others, has undergone certain changes. First of all, they affected the preferences of potential buyers, demand for certain types of housing and prices. The latter fluctuated over a long period of time depending on the sanitary and epidemiological situation in a particular region of the country, although the geographical factor still played a key role.

According to a report prepared by the portal, throughout 2020, the vast majority of sales transactions concluded involved two types of real estate: apartments and villas. In the first case, the average price across the country increased by 2.6%, while in the second it decreased by 0.1%, however, in the case of destinations that are very popular among foreign investors, the picture looks completely different.

Milan and Venice can be cited as illustrative examples. In the second largest city in Italy, the increase in apartment prices from January 2020 to January 2021 was recorded at a record level for the entire country – 18.8%. At the same time, it ranks second in terms of cost per square meter. As for villas, in Milan their prices over the same time period increased by 11.2%, and in the most famous city on the water – by 11%.

Italian real estate market: price dynamics in 2020

Changes in prices for apartments in Italy

If we consider the dynamics of changes in housing prices in Italy by province, then the undisputed leadership will also remain with Milan, where the increase in prices was even more noticeable than in the city – by 19.6%, and the cost of 1 sq.m. amounted to 2793 euros. Milan is followed by Lucca, Modena and Udine, which showed the same result last year – +7.1%. One “square” in Lucca, which is among the Italian provinces with the most expensive real estate, costs significantly more than in the other two: 2,630 euros versus 1,620 and 1,552 euros, respectively. In terms of the cost of one square meter in an apartment, the top three are as follows: Bolzano (3759 e/m2, increase – 6.2%), Savona (3267 e/m2, +1%) and Florence (3024 e/m2, +4, 3%).

Among the Italian provinces that experienced the largest drop in housing prices in apartment buildings during the analyzed time period, Isernia stands out (-8.8%), where one square meter in January 2021 cost 840 euros. Average prices decreased significantly in Pistoia (-7.1%, 1,360 euros) and L’Aquila (-6.9%, 1,186 euros).

Italian real estate market: price dynamics in 2020

Changes in prices for villas in Italy

Due to various restrictions imposed by the Italian authorities as 2020 progressed, demand for detached single-family properties has increased almost everywhere, with villas being the most sought after. The growth rates were not as impressive as in the case of apartments, but the coverage was wider.

Thus, from January 2020 to January 2021, prices for villas in Italy rose more noticeably than in other regions in the province of Sassari – by 9.1%, where they reached 2,429 euros/m2. Naples (+8.6%, 1,961 euro/m2), Reggio Emilia (+6.5%, 1,376 euro/m2) and Lucca (+6%, 2,608 euro/m2) also stand out against the general background. Villas in Agrigento, Sicily, have also risen in price by the same 6% over the year, but their price still remains one of the lowest in the country – 968 euros/m2.

The most expensive at the beginning of 2021 will be the purchase of a villa in Bolzano (3148 euros/m2), and three provinces of Tuscany, which consistently enjoys increased popularity among Russian investors: Grossetto (2733 euros/m2), Lucca (2608 euros/m2) and Livorno ( 2587 euro/m2). The closest to the average price for Italy are villas in Sassari (2429 euros/m2) and Imperia (2441 euros/m2).

The prices for villas fell the most in two Sicilian provinces – Caltanissetta (-6.9%, 622 euros/m2) and Catania (-5.6%, 1064 euros/m2), as well as Lecco (-6.5%, 1,449 euros /m2) and Macerate (-5.8%, 1079 euros / m2).

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