Luxury property in Italy proving resilient to downturn
A new report has found that the luxury property sector in Italy is proving more resilient to falling prices than the country’s mainstream market. While residential property prices have fallen by just under a third on average since mid-2008, luxury properties are performing better, say Knight Frank, the property group.
We look at why the values of luxury property in Italy are holding up well.
Luxury property in Italy seen as a ‘core market’
Knight Frank’s latest report found that prices have fallen by around a fifth in some luxury markets. However, a weaker euro in the first half of 2012 ha resulted in an increase in interest from more non-Eurozone buyers. In addition, the property company found that demand for properties above ?3 million (£2.4 million) is holding firm.
Property Community reports that ‘traditional buyers from the UK and the United States are now competing with those from Scandinavian, Russia and the Netherlands.’
An analysis of searches on Knight Frank’s global website between January and August 2012 found that Sardinia had seen the largest spike in property searches. 84 per cent of searches for Property In Sardinia were for homes over ?5 million (£4.1 million) while 45 per cent of all searches in Tuscany and Umbria were for luxury homes worth over £4 million.
Kate Everett-Allen, head of Knight Frank’s international residential research team, said: “We believe a floor has now been reached and activity will strengthen in the remainder of 2012 with the potential for price growth, albeit marginal.”
The global recession has resulted in many luxury property buyers heading back to core market such as London, the South of France and areas such as Italy’s Lake Como.
This new research found that prices in the Lake Como area have been steady over the last year thanks to the quality of the homes for sale and thanks to its easily accessible location.