Growing interest for long-term investment in Venice
Growing interest for long-term investment in Venice.
Property sales in Venice are booming due to the interest of French, Russian, Eastern European and Middle Eastern buyers. Investors are attracted by the competitive market and the possibility for stable long-term investments. Recent data shows that most purchases are made by French buyers, followed by Swiss and British foreign investors, whereas the number of Americanspurchaserson the market has declined.
The situation on the Italian real estate market remained relatively stable in 2011, despite the global financial crisis and the economic turmoil in Greece and the EU as a whole. The property prices have fallen by only 8% since their peak in the second quarter of 2008 and having in mind that they have been on the rise since 2000, with an increase of 72%, this fall seems to be insignificant.
Most successful is the luxury homes market because of a slight decrease in prices toward the end of 2011. Prices for properties in central Venice vary between €6,000 - €9,000 per square meter and get up to €10,000 to €12,000 per square meter for the most desirable homes in the very heart of the city. There is increased activity especially from foreign buyers, who comprise about 65% of luxury property investors in Venice. They are predominantly lifestyle driven as opposed to short term speculative investors.
Customers’ favorite choice is an apartment in good condition on the first floor, or one on a higher floor with a lift, with a minimum of two bedrooms and two bathrooms. To afford such property in the center of Venice, one should have a budgetof at least €800,000, up to €2 million.
Analysts expect strong activity on the estate market in 2012, which has been signaled by the confident growth from the second half of 2011.The Venetian market now is seen as more competitive compared to many other European cities. The city of love offers the perfect combination of factors for prospective property owners: a fashionable landscapefeaturingbeautiful architecture, iconic history, and a year long program of mesmerizing social and cultural events. All this makes Venice a favourite location for buyers seeking an opportunity for secure long term capital appreciation, good rental income potential or just an amazing place to live.
