Friday, February 3, 2017
Florence Property Market Rising After Economic Fall
The start of the 21st century has been a volatile time for the housing market in many parts of the world. In Italy, the first decade saw a steep rise in housing values, greater than 50 percent when adjusted for inflation. With the global financial meltdown in 2008, property prices began to fall. Then the Euro crisis that began in 2011 had an even more severe influence on the struggling Italian economy. Since 2008, housing prices in Italy have fallen 23 percent after inflation adjustment, according to figures provided by the European Central Bank.
Things are now turning around, which is good for homeowners, but the news remains optimistic for buyers as well. The good news for anyone in the market for homes for sale in Florence is that prices continue to drop, albeit not as rapidly as before. Coupled with the news that Italy’s economic outlook is rosier than it has been over the past three years, there are many advantages of considering investment in Florence as a home base.
One of the factors influencing the property market in Italy is the new economic measures that were passed in 2016. The market was boosted by the new legislature, which includes a tax credit of 36%. Most Italians own their homes, and short term rentals in Florence are not popular from a landlord’s perspective. Unless you are interested in luxury homes or castles, there are big advantages right now to investing in new or existing constructions.
No matter where in the world you call home, real estate transactions are often confusing and demand a lot of attention to detail. Acquiring existing property or building a home in a new country can be especially tricky for foreign residents. One benefits of working with architects and real estate companies in Florence is that they usually employee English-speakers who can make the process much easier. Italy is famous for its bureaucracy, so the elimination of a language barrier is a big step toward putting you in your new home quickly and happily.
With new housing construction primarily designated for home ownership rather than rentals, the standard of living rises as well. Eventually, the value of homes in Florence will reflect this higher standard of living, with property prices expected to rise in 2017. Long term Florence residents are wise to consider purchasing a home before prices rise in accordance with the demand on the bargains to be found today.
The situation of course varies across the country, but overall Florence real estate is comparable to other Italian markets. At the end of 2015, the average price per square meter was 3,394 Euros in Florence, almost identical to Rome (3,396 Euros) but well below Venice (4,383 Euros), the priciest market in all of Italy.