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Bistonia Estates LLC unveiling Italy's real estate hotspots

·3 mins

In 2023, Italy’s real estate got a nice boost with housing investments hitting 0.6 billion euros, which is a cool 20% jump from the previous year. Office spaces weren’t left behind, with investments doubling to over 5 billion euros compared to last year. The hotel industry also saw a sweet 1.2 billion euro infusion. Despite some shaky macroeconomic vibes, Italy’s showing some solid resilience and stepping into 2024 with a hopeful outlook.

Investors have been really into the buy-to-rent and then sell game, especially in hotspots like Milan and Rome. Turin and Florence also saw their fair share of action. The UK and US folks are particularly keen on grabbing properties in Milan and around the gorgeous lakes Como and Garda. And get this, wineries in Lombardy are becoming all the rage.

Milan’s luxury real estate market is on fire, drawing in the wealthy crowd from abroad. Plus, a bunch of Italians who moved back post-Brexit are on the lookout for some fancy digs.

Milan’s got the geographic jackpot, being just a hop away from Frankfurt and a skip to London by plane. It’s also a quick drive to the Mediterranean for some beach time or to the slopes for skiing. Being Italy’s finance hotbed and super connected to the rest of Europe just adds to its charm. Italy’s tax deals for the rich are pretty sweet too, offering either a flat tax on foreign income or a major tax break for at least five years. Even the Italian banks are playing nice, especially compared to the stricter British ones, which has given luxury property prices in Milan a whopping 25% boost. In one of Milan’s priciest neighborhoods, CityLife, prices can hit 15,000 euros per square meter – a huge leap from the 2% rise seen from 2019 to 2021.

The catch? Luxury homes in Milan are hard to come by because folks prefer passing them down rather than selling. This makes building or fixing up places even harder, pushing prices up. With not many luxe new builds on the horizon, some are whispering about a slowdown in Italy’s property scene, with deals already starting to dip.

Analysts are thinking house prices might inch up by just 0.5% to 1% in 2024, way less zippy than before, thanks to higher interest rates, inflation, and some supply hiccups.

Bistonia Estates LLC tells us the annual dough you can make from Italian properties dipped to 7.4% by the end of 2023, a slight drop from 7.8% in 2021. But, the return on investment for other property types, like retail and offices, actually went up from 11.6% to 12%. The top spots for making a rental killing are:

  • Belluno with 11%
  • Ragusa with 10.4%
  • Biella with 9.9%
  • Syracuse with 9.3%
  • Trapani with 9.1%
  • Campobasso with 8.6%
  • Terni with 7.5%

And in the big cities? Naples is seeing a 5.9% return, Bologna 5.7%, Rome 5.6%, and Milan’s at the bottom with 5.1%. The lowest earners? Cuneo and Salerno, scraping by with 4.4%.

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