A challenging economic outlook in Italy has led to a more cautionary attitude amongst property buyers but the world’s wealthy still consider it to be one of the most desirable second home hotspots. Unlike the UK, the US, Ireland and Spain, Italy did not experience a housing market bubble prior to the financial crisis.
Italy’s public debt to GDP ratio now stands at 120% and it is forecast to be 2014 before GDP growth re-enters positive territory. However, Italy’s prime residential market has outperformed its mainstream counterpart. The €3 million plus market (ITALY) is in good shape and sales volumes are healthy.
Nonetheless, there remains strong demand for development products below €1 million and for many international buyers, Italy’s established prime locations offer a more secure second home option without the risk that many emerging European markets presents. Research shows that buyers from the UK, the US, Belgium, Denmark, the Netherlands and Russia are the most active. The research shows that buyers from UK, US, Belgium, the Netherlands and majour player Russia are most active in this market. The one issue that connects these buyers is their level of wealth, many are increasingly internationally mobile with multiple residences globally.www.fdmre.com