Would you like to own a property in Italy but aren’t sure whether now is a good time? Homes or properties in Italian cities and rural regions always hold a certain appeal for foreign investors. The truth is there’s no better time to purchase that property you desire than now.
Since the COVID-19 pandemic, prices have plummeted, especially since the beginning of 2021. Any Italian property for sale is becoming increasingly valuable. Moreover, Italy’s brand-new Ecobonus has significantly minimized costs for refurbishment, while teleworking is now considered the great move of the future.
There’s also no need to worry about the opening of realty agencies. They have since opened their offices officially as the pandemic lockdowns started easing up while ensuring sanitary measures and social distancing, and conducting virtual operations.
Additionally, they now provide virtual tours, video conferencing, and digital documentation to help any interested real estate investor like you find a suitable property successfully.
Post-Lockdown Real Estate Price Drops
The demand for real estate property in Italy has declined drastically since the lockdown. Records even show that there have been up to 100,000 fewer sales compared to the booming years before COVD-19. There have also been close to 20,000 sale cancellations of real estate property all across Italy due to the pandemic. The fall of interest in Italian properties resulted in their declining prices.
On the bright side, the resultant depressed interest rates in Italy mean now is the prime time to purchase property in the European country. However, note that the prices of properties in Italy depend significantly on just how quickly the properties' owners decide to sell. But since real estate property prices continue to drop—especially in the South and in smaller Italian towns—now is the ideal period to start looking for property to purchase.
The Availability of Property in Italy
The coronavirus outbreak has also brought about a significant increase in real estate properties placed on the market. More opportunities for Italian property ownership have emerged since most Italian banks are more than willing to provide low-interest rates, short-term leases, and mortgages.
Dozens of properties once used for accommodation are now on the market as many people get back to their family homes or relocate.
The Ecobonus
The Italian government introduced what’s known as an ‘Ecobonus’ in 2020. It’s a renovation bonus, an essential tax reduction of about 110% of the expense for upgrading your real estate property's sustainability measures.
It also encompasses procedures targeted at seismic risk reduction or boosting energy efficiency that considerably enhances energy ratings by a minimum of 2 classes.
The primary purpose of this tax deduction is to stimulate property or homeowners to radically invest in environmentally-friendly precautions to boost the European country’s sustainability effort while creating exceptional job opportunities at the same time.
A few excellent examples of installations that the Ecobonus covers include:
- Roof and wall installation
- Earthquake-resistant structural developments and improvements
- Energy-efficient cooling and heating systems
- Charging ports for electric vehicles
The Ecobonus, which became active and effective on July 1, 2020, will continue covering costs until the end of 2022. It also applies in the following areas:
- Low-cost houses
- Detached homes
- Condominiums
- A few family villas, etc.
Unfortunately, places with artistic merit, along with castles, are exempted or excluded from Italy's Ecobonus. You don’t have to worry since you probably aren’t interested in buying a castle in Italy.
However, you can benefit immensely from Italy’s Ecobonus since you’re in the market for a property in Italy. Namely, you’ll be capable of performing developmental measures with authorized renovations or upgrading your property as soon as you start paying your taxes in Italy.
What About Prices of New Homes With Open Spaces?
Many foreigners interested in buying property in Italy are looking for homes adapted to the novel needs that became imperative due to the pandemic. Homes with spacious and open environments for ensuring interpersonal distances, unique rooms for smart working, outdoor spaces, etc., are at the top of the list.
This is why real estate specialists in Italy claim that properties that meet the criteria outlined above will experience the lowest price variation. But prices for newly-built properties in Italy will most likely rise.
Conclusion
Since you’re already considering buying an Italian property and probably moving there, conducting some preliminary in-depth research on different cities and rural regions is an excellent idea.
You need to learn about the best places—i.e., countryside or city—to purchase property in Italy, what you should expect when you get there, etc. This is why researching before you make a move is highly crucial.
