Do you know precisely what Italy’s housing market will look like in 2022? Research reveals the industry to be somewhat steady despite the recession the novel coronavirus pandemic induced in 2020. From the pandemic year until February 2021, statistics indicate that the price of houses nationwide spiked by 1.6% to hit an average of $2,055 per sq. m. (square meter).
Even though the popular real estate portal—Idealista—showcases real estate listings in Italy, the house prices, when adjusted for inflation, showed an increase of up to 1.1%.
But since the new year 2022 has begun, it’s not too late to carefully evaluate Italy’s housing market. This is a great time to weigh the benefits and drawbacks of investing in real estate, etc., and make an excellent buying decision.
House Prices in Italy: Will They Drop In 2022?
In-depth studies reveal that the prices of real estate properties in Italy are still somewhat competitive compared to the typical European housing market trend.
According to Eurostat—the EU’s statistical service—the prices of homes for sale in Italy have plummeted by 12% since 2010. This is in contrast with other parts of the European Union, where they averagely increased by as much as 39%, especially during the third quarter (Q3) of 2021.
Nevertheless, a closer look at the last 4 months of 2021 shows that the average price of every real estate property bought for investment or housing significantly increased by up to 4.2% in Spain and Italy. This directly contradicts the 9.2% increase observed in the European Union compared to the exact period in 2020.
In the Republic of Cyprus, the average price of real estate property rose more slowly—at a measly +2.2%—than in Spain and Italy.
Interest Rates, Mortgages, as Well as Several Fiscal Privileges in Italy
Taking out a mortgage in Italy to purchase a house in the country is still incredibly convenient. This is because rates are expected to remain at the current levels or only increase slightly all through 2022.
Moreover, young individuals below 36 years are interested in purchasing their first residence. Most banks in Italy are now adapting their offerings very fast for 2022, all thanks to the Italian government’s Sostegni-Bis Decree — Legislative Decree no. 73/2021.
Several massive incentives for home improvements exist. This includes the so-called Superbonus 110% that’s been extended throughout 2022. This allows you to refurbish your real estate property as it covers every cost of structural seismic improvements and energy efficiency.
Therefore, seek out the professional assistance of a certified engineer or architect to see if you can readily take advantage of this once-in-a-lifetime opportunity to benefit your Italian real estate property.
The real estate market in Italy has conveniently and powerfully withstood the overall impact of the novel coronavirus pandemic remarkably well. Despite the considerable crisis-induced pressure of altered housing needs, the interest rates were at considerable historic lows.
A real estate expert attributes Italy’s housing market’s resilience to nothing else but low borrowing costs throughout history. The expert states that most people are now much more dedicated to purchasing real estate property.
In summary, real estate property now appears to be one of the safest places to put your hard-earned money. The reason isn’t far-fetched; more people are currently giving more thought to owning property in locations where life is comfortable and highly sustainable in Italy.
The Latest Figures from ISTAT
According to the most recent figures from ISTAT (National Institute of Statistics), the extensive house index price rose by 1% during the third quarter of 2020, or by 1.5% if adjusted for inflation.
Within this period, new house prices rose by up to 3%—or 3.5% if adjusted for inflation—while existing house prices were up by 0.7% (1.2% if adjusted for inflation).
Milan and Venice currently have the most expensive real estate property in Italy. Average house prices in these locations are $4,774 and $5,340 per square meter, respectively.
Last year (2021), prospects were marked by nothing but cautious optimism. But at the very first sign of economic recovery, the Italian real estate market was quick to recover.
So far, one thing is clear — Italy’s housing market is incredibly stable. This is a near-perfect period of the year to take advantage of the current prices to make some impressive real estate investments and grow your portfolio in Italy.
There’s no better time to purchase your dream home in the European country than now. Therefore, quit dallying and take action by finding out more about several highly recommended places to invest heavily in Italian real estate properties.