Should you be selling property quickly in Italy this year? What do the trends indicate? The Italian property market has done reasonably well considering the political impasse in the country. Here are the things to watch out for in the Italian property market.
#1: Political instability in Italy affects the economy and the housing market.
There has been a political impasse in Italy because of the lack of a stable government at the centre. The country was pushed to the brink because of the resignation of Prime Minister following his loss in an important referendum and the rise of the Euro-sceptic 5 Star Movement.
Politics dominates all discussion in Italy and the economy, unfortunately, has taken a backseat. No important decisions have been taken over the last 12 months or so. The financial markets have reacted badly to this, as you might expect. Economic growth has practically come to a standstill and is at the lowest it has been for a while.
An election will be held in Italy soon and indications are that it would lead to further instability as no government is likely to be in place by that time. Experts predict a hung parliament and massive wins for anti-establishment parties like the Five Star Movement. This is not good news for the housing market in Italy.
#2: The geopolitical situation in Europe has been affected the Italian real estate market.
Italy has been shocked by a series of events in Europe, which haven’t affected it directly. The terrorist attacks in France, the refugee crisis in Europe, Brexit and the general uncertainty in Europe has affected Italy greatly.
There is a worry that the successful campaign of the Leave campaign that led to Britain exiting the European Union will lead to a similar campaign in Italy. The rise of anti-EU forces such as the Five Star Movement reflects a growing desire among the people in Italy to leave the European Union for good.
#3: Property Prices in Italy continue to fall.
The decline of property prices in Italy, which began last year, has continued into this year. Home values have registered a fall of 1.4 percent on an average across the country. Home values of new properties have fall further, by 2.3 percent. Experts predict falling home prices in Italy for the rest of this year and quite possibly, in next year as well.
#4: Foreign investors continue to buy properties in Italy.
Regardless of the bad news coming from Italy, which we have talked about here, Italy is still one of the best places to live in the whole world. The quality of life here is just exemplary.
A number of wealthy foreign investors from China, Russia, Brazil and the Middle East have bought properties worth millions in Italy, especially in regions such as Tuscany, Calabria and Apulia. Germans, Swiss, French and Scandinavians are big buyers of Italian properties as well, as are Americans, who have traditionally had a romantic notion of Italy.
So you shouldn’t find it too difficult to sell overseas property in Italy fast for a great price, provided you hire the right overseas property estate agent.