Real estate prices in Italy after quarantine

The coronavirus pandemic has had a direct impact on almost all property markets in Europe, although to varying degrees. The Italian real estate market was among the most resilient, as there were no sharp drops in prices in any of the country’s regions, and some even experienced steady growth.

First of all, this applies to the northern regions – such as Liguria, Piedmont, Valle d’Aosta, where the standard of living and income of the population has always been significantly higher than in the south. By October, the cost per square meter increased there by 0.3%-2.3% compared to the previous quarter, and if we take into account the same period in 2019, then positive dynamics are observed in more than half of Italian regions. The strongest drop in prices was recorded in Campania (-3.1%), Abruzzo (-2.7%) and Marche (-1.9%).

Property prices in Italy after the pandemic

The average in Italy is 1 sq.m. housing cost 1,727 euros in October, which is 0.8% more than in October last year. This happened largely because after the first quarantine restrictions, many Italians changed their priorities when choosing apartments or houses, and they seriously thought about changing their place of residence. In the current conditions, objects located near parks and other green areas, but at the same time within walking distance from all the necessary infrastructure – schools, hospitals, banks, supermarkets, have become in high demand.

However, the number of such offers was limited – especially in industrial regions, and there were more and more people wanting to take advantage of them, which predictably led to rising prices. Based on numerous studies carried out in May-June with the participation of well-known real estate agencies and the media (for example, Nomisma and La Repubblica), a serious drop in prices was expected not only in Naples, but also in Rome, Turin and Florence (within 4- 15%), but in the end this never happened. Moreover, now, despite the high probability of introducing a second national quarantine, there are no significant fluctuations in either direction.

Property prices in Italy after the pandemic

However, all these statements are true only in relation to residential real estate in Italy. Between the end of April and June, a record number of offices, small shops, bars, restaurants were put up for sale, with unprecedented discounts of up to 30%. The exceptions were warehouses, since any product requires storage space, coworking centers, although with the introduction of new sanitary and hygienic standards they could not accommodate as many people as before, and coliving residential complexes, which became the optimal solution for those working remotely. “. It is no coincidence that the world’s first company specializing in this segment of the real estate market appeared in the Apennines.

How much does real estate cost in Italy after the pandemic?

Another trend that has emerged in recent months is a significant increase in the proportion of foreigners among potential investors. For those of them who were initially determined to buy property in Italy, the closure of the borders did not prevent them from realizing their intentions. Viewing properties and concluding purchase and sale transactions online have been practiced before, and in the vast majority of cases this practice has fully justified itself, however, for a variety of reasons, many buyers did not dare to take such a step. Now this has already become the “norm of life” not only in the case of Italy, but also for other popular immigration destinations (Spain, Portugal, Greece, Cyprus), and any complaints from clients are extremely rare.

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