ITALY IRL

Great Things To Know Before Investing In Italy – 2024

Italian Property 2024

The Italian real estate market has long been one of the most desirable in the European continent. Italy attracts Expats from all over the world who are seeking the opportunity to live the Dolce Vita, and many choose to buy property and settle down in the country for the long term. Italian real estate prices are generally quite stable; and although there is a general trend towards gradually increasing property prices, the relative stability of the Italian real estate makes it a sustainable long-term investment for many Expats.

Average Property Prices In Italy In 2024.

The average price for a 2,000 square foot home in Italy in 2024 is around $375,000. That works out at about $188 per square foot and represents an excellent investment opportunity for foreign buyers and Expats. Over the last year, average property prices in Italy have increased by around 1.7%, which represents a good, stable rate of growth.

Of course, there are major differences in property costs throughout the nation, with property prices being significantly higher in major cities and popular tourist locations. However, somewhat surprisingly, Italian real estate prices are actually far more affordable than other comparable Southern European nations, such as Spain and Portugal.

Best Regions To Buy Property In Italy In 2024.

Italy boasts some of the most beautiful regions in the world and consequently, the property prices in these parts of the country reflect this. Trentino-South Tyrol, in Northern Italy on the border with Switzerland and Austria, is the most expensive region in Italy, with property prices averaging at $618,000 for a 2,000 square foot house. This means that the average price per square foot is $309. What’s more, property prices in Trentino-South Tyrol increased by an eye-watering 12% over the last year, making property in this region, at least potentially, a very good near-term investment.

In second place, the spectacular Aosta Valley, in North West Italy, is another highly desirable region to buy property in Italy. The average property price for a 2,000 square foot house, sits at $532,000, which is $266 per square foot. However, the property market in Aosta Valley has remained more stable than in Trentino-South Tyrol, with property prices only increasing in value by around 1% over the last 12 months.

In third position, Liguria, in Western Italy on the border with France, has an average price for a 2,000 square foot property of around $510,000. This works out at $255 per square foot and offers foreign buyers with lots of chances to invest in some excellent Italian property.

Affordable Regions In Italy In 2024.

Italy has an abundance of great opportunities for anyone looking for a property on a tight budget. The most affordable region in the country is Molise, in central Southern Italy, where a 2,000 square foot property averages at $184,000, or $92 per square foot. However, property prices rose by around 6% during the last year which may reflect a growing awareness of the excellent bargains that are on offer in the region.

The second most affordable region in Italy is Calabria. This popular holiday spot in Southern Italy has property prices that average at $188,000 for a 2,000 square foot house, which translates to just $94 per square foot. Property prices in the region have remained almost unchanged in recent years which makes it a good option for a stable investment that has the potential to generate good long-term returns if you choose to rent your property to visiting tourists.

The third cheapest region in Italy is the beautiful Mediterranean island of Sicily. Attracting large numbers of Expats and tourists, the average price for a 2,000 square foot property in Sicily is $205,000, or $105 per square foot. Real estate prices on the island have remained very stable and offer foreign investors some really excellent opportunities, particularly in the tourist rental sector.

Prices In Italian Cities In 2024.

Property prices in the major Italian cities vary considerably from one neighborhood to another. This means that although you can find some real bargains, even in Tier 1 cities such as Rome, Venice and Milan, there’s also a fantastic selection of top-of-the-range luxury and historic properties to choose from as well. Of course, it’s always going to be much easier to rent out your property in a city, as compared to a smaller rural town, although you will usually see this reflected in the property prices as well.

It should come as no surprise that the most expensive city to buy property in Italy is the nation’s main fashion and financial center, Milan. A 2,000 square foot property can easily cost you as much as $1 million, with the average price per square foot coming in at $509. This makes Milan the most expensive city to buy property in Italy by quite a long way.

The second most expensive urban area to buy property in Italy is the beautiful Renaissance city of Florence, with an average price of a 2,000 square foot property in Rome is $822,000; followed by Bologna where a 2,000 square foot property averages at $712,000, and Rome, with an average 2,000 square foot property costing around $612,000.

To give yourself a clear idea of the average property prices for a 2,000 square foot property in Italy’s major cities, you can peruse the table below.

CityAverage Price (USD
Milan1,018,000
Florence822,000
Bologna712,000
Rome612,000
Naples562,000
Bari394,000
Turin376,000
Genoa286,000

Reasons Why You Should Buy A Property In Italy.

The following are some of the key reasons why you should consider buying a property in Italy:

Italy Has A Relatively Stable Real Estate Market.

The Italian real estate market has remained very stable in recent years, despite major economic shocks to the system, such as the 2009 Economic Crash and even the 2020-22 Global Pandemic. Of course, all real estate markets will see fluctuations in property prices but the Italian markets have shown incredible resilience in the property sector, even when other parts of the Italian economy have struggled to adapt to changing global conditions.

Even so, the Italian real estate market has consistently appreciated in value and property owners in the country have seen their wealth increase considerably in the last decade. Consequently, purchasing a property in Italy as a long-term investment is relatively safe and has the potential to generate a good passive income if you decide to rent it to tourists, Expats, or local residents.

Take Advantage Of Italy’s Golden Visa Opportunities.

Another big advantage of buying property in Italy is that non-European Union citizens can obtain official residency status in the country if they meet certain criteria. This makes moving to the country much easier if you are an Expat and gives you full access to the whole of the EU Schengen Zone, allowing you to travel and work freely in other EU countries as well. You should check with the Italian authorities to find out the specific criteria that will apply to your personal circumstances, but for many investors, the chance to obtain an Italian residency permit is one of the major benefits of buying a property in the country.

Great Passive Income Opportunities.

As a result of being one of the world’s favorite tourist destinations, property owners in Italy can rely on a steady demand for short-term holiday rentals, especially in the main tourist hotspots. In fact, the demand for Italian properties in picturesque or historic locations is almost certain to remain high in the coming decades and shows no sign of slowing down any time soon. This means that buying a property in Italy can easily become a lucrative long-term investment for you and your family.

Excellent Standard Of Living.

The Italian standard of living is extremely high, with superb cuisine, beautiful landscapes, historic cities filled with world-famous landmarks and a friendly local population. This means that if you decide to live in your Italian property, or even visit for extended breaks throughout the year, you’ll be able to enjoy the classic Dolce Vita, each and every day!

Relatively Low Cost Of Living.

Considering the incredible quality of life, the general day-to-day cost of living in Italy is very low, especially when compared to other Western European nations such as Germany, France and the UK. Food prices in Italy, even for fresh organic ingredients, are very low compared to the rest of Western Europe, as are property prices, train tickets, and other essential elements of life. On the downside, fuel and utility prices in Italy tend to be on the high side, particularly when compared to the United States, although it’s quite easy to mitigate these costs if you’re living on a tight budget.

Reasons Why You Should Not Buy A Property In Italy In 2024.

The following are important reasons why you should not buy a property in Italy:

Macroeconomic Issues In Italy.

Although it’s true to say that the Italian real estate market has remained stable in recent years, Italy continues to suffer from other macroeconomic issues. For instance, the nation has a very high national debt, fluctuating levels of inflation and has seen relatively slow general economic growth.

These macroeconomic issues have been further compounded by various geopolitical flare-ups that have disproportionately impacted the Italian economy. The ongoing nature of these economic concerns may contribute to a less favorable environment for foreign property investment in the coming years. However, you should always consider your own personal circumstances and carefully weigh up any investment you make in the Italian property market.

Bureaucracy And Red Tape.

Italy has a famously complex bureaucratic system that surrounds the property market. This can make buying a property in Italy, especially if you are a foreign investor, confusing and even, at times, frustrating. Navigating the bureaucratic and legal hurdles involved in buying a property can be especially difficult if you’re trying to buy a property from overseas.

However, you can easily overcome these problems by working directly with a local real estate professional who will be able to manage all the Italian red tape on your behalf; as well as provide you with English language translations of the relevant legal documents and help with all the necessary legal paperwork.

Potential For Natural Disasters.

It’s not widely known outside of Italy, but some parts of the country are quite prone to suffering from natural disasters such as earthquakes and floods. Fortunately, the Italian government has gone to great lengths in recent decades to improve property standards to make them more resilient, especially in earthquake-prone regions, but even so, the risk does remain very real in some parts of the country.

As a property investor, you can choose to avoid these parts of the country entirely or, alternatively, be prepared to pay for additional insurance and ongoing safety measures for your property.

Summary – The Italian Property Market 2024.

Whenever you’re considering such a large investment as buying a property, it’s vital to weigh up all the pros and cons before making a decision. Ideally, you should work with a local real estate professional to ensure that you don’t fall foul to the complex bureaucracy or legal red tape that enshrouds the Italian real estate market.

However, on balance, 2024 is a good year to buy property in Italy. Property in Italy is located in some of the most desirable locations in Europe and offers excellent long-term potential for tourist rentals. You may also benefit from gradual property price appreciation value, making property in Italy a great investment to pass on to your family.

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