Italy’s real estate prices per square meter
If you have a budget of 200,000 euros, how many square meters of real estate will you buy in one of the big Italian cities? This is an analysis of the Tecnocasa group which say it. The real estate group’s design office looked at the 10 big cities and the “average used” value of a building, leaving aside the highest prices. With the budget considered, you can buy a 66 m² apartment in Rome, a result of an average price per square meter that is about 3.043 euros. If you want to live in the center of the capital, you should be satisfied with a house of only 38 square meters, or an even smaller property for the historic center. After Rome there is Milan which, with the same amount available, offers the possibility of buying a few square meters more than Rome, namely 71 square meters; but even in this case, if you choose the center, you must be satisfied with a building of 35 square meters. The third place among the most expensive cities is Florence where, with 200 thousand euros, an average building of 77 square meters is purchased, which becomes 61 square meters in the center. Do you want to buy a property in Naples? The city average is 96 square meters for 200,000 €. Cheaper than ever, so with the possibility of having a more spacious property, is Palermo, that, having an average price of 1.172 € per square meter, allows you to buy a good 171 square meters. The best value may be in the coastal villages of southern Italy, where you can buy, with 200 000 €, with sea view or even next to the beach, villas with more than 100 m² or apartments up to 200 m². Indeed, you will find prices of about 1000 € per square meter.
2018 Italian Budget Law: there are many home bonuses!
In the new Budget Law there is room for home bonuses. Let’s see what are the changing agendas and the remaining ones. Ecobonus 65% – For the whole of 2018, the ecobonus was confirmed at 65% for energy efficiency in the home. But it changes the perimeter of incentives: the installation of fixtures, solar shields and condensing boilers and biomasses goes from 65% to 50%; the bonus for solar panels for hot water, heat pumps and other building block jobs remains unchanged at 65%. 50% Bonus for Restructuring – It is possible to use the 50% bonus for restructuring costs incurred up to December 31, 2018, within a total amount of expenditure not exceeding 96,000 euros. Furniture Bonuses – A 50% deduction for the purchase of furniture and large household appliances in class A or A +, for a ceiling of 10 thousand euros. The deductions will be spread over 10 rates. Green Bonus – As of 1 January 2018, a figure of 36% of documented green fees can be deducted, up to a maximum of 5,000 euros for each real estate unit. The new discount will be dedicated to green housing “of private outdoor areas of existing buildings, real estate units, appliances or fencing”. Dry Coupon Extension – Contrary to the drafts circulated in recent days, the 10% coupon is extended on agreed contractual contracts, but the extension will only be due for the next two years. No stabilization, therefore, and no enlargement even to the “non-residential” properties, offices and stores remain excluded. Sismabonus and condominium bonus – On the front of the condominium ecobonus there are 70 and 75% discounts that are confirmed until December 31, 2021. The sismabonus will reach by 2021, with varying percentages between 75% and 85%. Ecobonus and sismabonus for former Iacp – The autonomous homes (formerly Iacp) can take advantage of the ecobonus for energy efficiency projects built on their property, as it was in the past, but also on real estate managed on behalf of the communes. The former Iacp will have access to the sismabonus up to a maximum of 85%. Guarantee Fund – The National Fund is set up to provide guarantees on loans aimed at energy recovery with a budget of 50 million per year between 2018 and 2020, broken down between the Ministry of the Environment and the Mise. Low-income households will thus have easier access to bank loans: with these 50 million annually, it will be possible to stimulate, according to government estimates, about 600 million of investment. Surrender of credits also for individual apartments – It is possible to transfer the deductions even for the transactions carried out on the single real estate unit, apart from the condominium interventions. Those who receive the bonus can then also transfer it again. So far, the possibility of transferring the deductions was limited to the only case of interventions on the condominium parts. Technical Requirements and Ceilings – The minimum technical requirements that Efficiency Interventions have to comply must be updated to fit into the ecobonus perimeter. To deal with there will be a decree of the Ministry of Economic Development. The text will also review the specific cost ceilings for each type of intervention, in addition to the execution procedures of the sample checks performed by the Enea.
Patient and thorough advocate
When it comes to legal matters it’s important to get it right. For this reason I went to Marco Magaraggia for advice. I had heard from English -speaking friends that as well as being an excellent lawyer he could also speak fluent English. I found him to be friendly, helpful and efficient. Even though I could get by in Italian I needed to be sure I didn’t miss or misinterpret anything and I was looking for a patient and thorough advocate. I wasn’t disappointed. Rita Bennett ritabennett@hotmail.com
The Italian real estate market keeps improving
The improvement in the Italian real estate market is slight but steady. At the 52nd National Congress of Notaries, the “statistical report on notaries” was presented for the first half of the year. The report reveals an interesting view of the Italian real estate market. In particular, in terms of sales, it is still the north of the country, Lombardy, in first position, while in the mortgage sector, there is still a certain caution both in requesting and providing funds. Buying property in Italy During the first half of 2017, 401,432 real estate purchases were analyzed, including 300,929 covered dwellings and important premises (boxes, cellars and car parks). More than half of purchases of manufactured goods, ie 56.48% (163,155 transactions), allowed for a first improvement in housing with a clear distinction between purchasing from private customers and from professionals with a clear crisis in the purchasing of new or renovated properties. On the profile of the territorial division, there is a clear difference between the North and the South of the country. The North is doing better on the real estate market More than 56% of real estate transfers were made in the North (34.84% in the Northwest, 21.59% in the Northeast), the Center 17.74%, the South 18.15% and the islands 7.67%. A positive number made the Friuli Venezia Giulia a record with + 10.72%, the Aosta Valley with + 6.37%, Trentino-Alto Adige with + 4.40%. In the Center, unlike the rest of the regions of the area, Umbria puts a + 7.91%. Lombardy and Veneto are also positive, with respectively + 2.60% and + 0.74%. Lombardy reamains the region where more goods are traded with 82,561 transfers, equivalent to 824 transfers per 100,000 inhabitants. In terms of housing, 56.48% are purchased with the first home purchase subvention: 49.5% are purchased by individuals and only 6.9% by businesses. The majority of the purchase of the first house is between the ages of 18 and 35: 39.5% of transfers; they increased by 3% compared with 2016. Even in the first half of 2017 – as in the first half of the previous year – 55% of the purchase of buildings and 97% of the purchase of agricultural land and 85% of the buildings are under the price of 100,000 euros. A certain caution and a low propensity to risk in the world of mortgages There is a 2% increase in new mortgage loans on buildings, but there is still a propensity for prudence and aversion to banking risk, as more than 70% of mortgages do not exceed 150,000 Euros. However, it seems important to note a rise of more than 10% in loans of more than € 500,000 €, indicating a resumption of large investments. In the first half, also increased by about 9% the amount provided by banks for new loans. Taking into account the total amount of bank financing: 78% are represented by new mortgages (mortgages), while substitutes represent 13.38%. The most funded age range is 18-35 and 36-45, of which 70% is funded.
Investing in real estate in Italy: the consequences of global warming
The consequences of global warming in Italy are before everyone’s eyes. Here are a few : Summer temperatures remain very high for several weeks, especially in large cities. During July and August 2017, Bologna, for example, experienced maximum temperatures above 35 ° during most of these months. In the same period, most Italian cities, both in the North and in the South, recorded maximum temperatures well above 30 °. Air pollution due to urban traffic is becoming more and more dangerous, forcing municipalities to limit traffic. Summer storms, due to masses of very hot air that meet the cold draft from the north, are becoming increasingly violent, causing flooding. We see phenomena never seen before, such as water spouts that cause considerable damage and flooding. Floods and landslides are becoming more frequent. The sea level increases by about 3 mm per year, it is already 20 cm higher than at the beginning of the century, facilitating the floods and the breaking of the waves on the coasts Beaches undergo erosion which shrinks them and in some cases has already completely carried them away. Some bars and restaurants on the beach had to be closed. Jellyfish often invade the Italian coasts, especially in the center and south, making swimming difficult, unless you’re staying in a water no deeper than 130 cm. How to invest in real estate by keeping away from all the pernicious consequences of global warming? These are the precautions to be taken, in my humble opinion, with respect to each problem listed above: Avoid investing in large cities, aunless there is a particular interest in doing so. It is very likely that real estate in the sea and the mountains will be more and more sought after, and valuable, as people want to leave the cities too hot in the summer, at least for the holidays. It is better to equip yourself with a green car, electric, hybrid or with LPG or natural gas, which will still be able to circulate. Find out more about the meteorological phenomena observed in recent years and ask the municipality for a map of the flood zones. The Adriatic coast to the east is less affected by the boiling air coming from Africa: water spouts and severe thunderstorms are therefore much less frequent than on the west coast and on the islands. Look carefully at the land upstream of the property you would like to buy. Consider the extent of the beach and find out about its erosion during the last decades, if you want to buy a property in the sea. Ask about jellyfish before buying a property in the sea.
Municipal taxes in Italy for 2018: Imu, Tasi, Tari
Imu, Tari and Tasi: tell me in which region you live and I will tell you how much they cost you Municipal taxes are important in Italy, although cheaper than property taxes and housing taxes in France. In particular, in Liguria. And the most important tax is Imu, with an average cost of 197 euros. However, the waste tax and the Tasi, communal tax on integrated services, are no less important. According to the data prepared by Adnkronos and contained in the tables distributed by the Ministry of Finance, during a parliamentary hearing on the fiscal capacity of local authorities for next year, in 2018, the Ligurians will pay on average 703 euros. Taxpayers who live in Calabria will pay less than half: 298 euros. In 2018, Italian taxpayers will pay an average of 489 euros of municipal taxes, but with significant differences depending on their place of residence. After the Ligurians, to pay the highest local taxes will be those who live in Lazio (596 euros) and in Tuscany (581 euros). Whereas, after Calabria, the least taxed will be the inhabitants of Basilicata (310 Euro) and Molise (354 Euros). Above the national average: Emilia Romagna (570 euros), Piedmont (500 euros), Lombardy (498 euros). Below the average: Veneto (479 euros), Umbria (464 euros), Abruzzo (451 euros), Marche (429 euros), Apulia (389 euros), Campania (377 euros). The cost of Imu Imu is the most important tax, with an average cost of 197 euros. The highest peak is in Liguria, where it reaches 362 euros, and the lowest in Basilicata, where it stops at 108 euros. Then there are Tuscany (236 euros), Emilia Romagna (234 euros), the action (232 euros), Piedmont (212 euros), Lombardy (200 euros), Veneto Abruzzo (€ 181), Marche (€ 170), Umbria (€ 168), Molise (€ 159), Apulia (€ 158), Campania (€ 131) and Calabria (€ 115). How much cost waste disposal (Tari) Waste costs an average of 122 euros. Tuscany (€ 161), Lazio (€ 154), Campania (€ 142), Emilia Romagna (€ 139), Abruzzo (€ 135), Umbria 136 euros)), Liguria (134 euros). Below the national average, Puglia (€ 119), Marche (€ 109), Piedmont (€ 105), Veneto (€ 102), Basilicata (€ 97), Calabria euros). The weight of Tasi The Tasi weighs on average 35 euros. There is Liguria (56 euros), then – above the national average – Emilia Romagna (43 euros), Tuscany (40 euros), Lombardy (39 euros), Lazio (39 euros), Piedmont (38 euros), Veneto (36 euros). You pay less than the national average in Umbria (31 euros), Abruzzo (31 euros), Marche (29 euros), Molise (28 euros), Apulia (25 euros), Campania Calabria.
Industrial production increases, boding well for real estate
Increase in industrial production in June. According to Istat, the Italian State Statistics Institute, the seasonally adjusted index rose 1.1% from May, adjusted for calendar effects. In June 2017, the index increased in trend terms by 5.3% (working days are 21, as in June 2016), at the upper end since the end of last year. On average for the quarter of April to June 2017, production increased by 1.1% compared to the previous three months. On average, for the first six months of the year, production increased by 2.2% compared to the same period last year. The positive trend continues for the Italian industry, after positive data were also recorded in May. The recovery is already influencing the real estate market Indeed, if we look at the property prices of the last 24 months, we note that the stabilization of the Italian real estate market is confirmed, as is the economic recovery. Prices remain at fairly low levels compared to the pre-crisis level of 2008, so we can do good business by buying real estate in Italy. The automotive industry is doing particularly well The acquisition of Chrysler and Jeep by Fiat is bearing its fruits Leap of production in particular in the automotive industry. Italian car production in June increased by 19.9% over the previous year, according to Istat. The average growth in the second quarter, compared to the previous period, is 4.4%. “This is the sector that drives industrial production this month,” said the Institute of Statistics.
The deep evolution of the Italian real estate market
Housing is no longer a safe haven for the younger generations The brick no longer seems to be the safe investment property, especially for the younger generation. The purchase of the house no longer seems to be a priority, due to the economic conditions that have changed for the so-called millenials, generations roughly 25 to 40 years, poorer than previous generations. That’s mainly due to a change in lifestyle or because of the economic crisis that remains. The sharing economy , environmental sustainability, job insecurity have profoundly changed the issue. Now a home must be technologically advanced, safe, designed for energy efficiency and the use of natural materials, or otherwise promoting the health of its occupants. It is necessary to start designing the houses, taking into account the location and the correct orientation, the waterproofing of the building, but also the ventilation control, with renewable energy equipment and systems. “Today, you are asking for a connected, efficient, healthy home,” says Gaetano Courage, general manager of Paspartu, a company specializing in the restructuring of homes and buildings. “Our homes look more like a car, customizable, and re-examined over the years, to maintain performance. The imperative is to point towards urban regeneration “. Economic conditions for the construction of houses more unfavorable than in France The precariousness of work, the fact that there are fewer and fewer steady jons, also means that young couples rarely want to engage in a project to build a new house. The number of children per couple has also decreased significantly compared to the last century, which increases the demand for small-scale housing. Italy’s residential market is quite different from that of France for a rather simple reason: France counts 67 million inhabitants on a territory of about 513 000 km². Italy counts 63 million on a territory of approximately 310 000 km². Except that Italy is constituted by a good half of mountains, lakes, almost desert and uninhabitable areas. It can therefore be considered that its real population density is three times greater than that of France. Buildable land is more difficult to find, and, on average, much more expensive to buy. This is what guarantees a stability of the prices of the Italian real estate market, despite any economic crisis. It is a sort of floor, below which it really takes a major economic catastrophe in order for prices to go down. At present, I think that the Italian real estate market has hit the bottom, an opinion that seems to be corroborated by prices that have stabilized over the past few months and are even starting to rise slowly. Let’s combine that with a real estate stock that by more than 62% dates before 1990, and we will understand the importance of restructuring and restoring existing houses and apartments.
Houses to be restructured in Italy, real estate investment opportunities
How the housing market changes due to redevelopment and urban restructuring In Italy, no new houses are being built, while the Italian housing stock is outdated, as it was mostly built before 1990. The demand for rental and purchase of real estate changes, as 2 million square meters of housing remain empty in Italy. But if at first sight this may seem a critical problem, on the other hand, it represents a huge opportunity. The renovation of real estate is the opportunity for the whole industry and for foreign or Italian investors Italy is a country of 20 million home owners. However, the properties are often empty, blocked by the small number of real estate transactions. In this scenario, the renovation of Italian real estate is the future of construction and industry. Already, in fact, 19 percent of sales involve renovated homes. Gaetano Courage, from Paspartu Italy explains how the market evolves and how to meet the new demands of transformation today. A connected, modern house. But also effective The beautiful home is a healthy one, and online. The revival of Italian real estate is an opportunity for the entire industry. Today already, in fact, 19 percent of sales relate to the renovation of homes. Environmental sustainability and energy savings are some of the key requirements According to the “first report on the resumption of construction in Italy”, produced by Scenari Immobiliari (real estate scenarios) in collaboration with Paspartu Italy and presented in Milan, 62.2 per cent of the properties were built before 1990 (30.1 per cent even before 1970). An outdated, energy-consuming heritage, often insufficient to answer the question that has been raised in recent years. On the other hand, there are at least 147 million square meters of empty and ready-to-sell properties, compared to the 123 million square meters of inadequate and unresolvable housing. With this framework, it is clear that the recovery and restoration of real estate assets could represent today one of the best opportunities for the whole sector: a market potential of 50 billion euros. “We have to create a new market,” explains Mario Breglia, president of Scenari Immobiliari. “And this role can be played by the restructuring of existing assets. Interventions that can render homes more comfortable, more pleasant, more beautiful. We can no longer consume land, so we have to take action on buildings, not just on individual apartments. “
Real estate foreign investments boom in Italy in 1st half 2017
Why foreign investors invest in real estate in Italy Six main reasons for investing in real estate in Italy if you are a foreigner There are plenty of creative Italian companies that are exporting a lot, at relatively competitive prices. These same companies are often bought by foreigners at reasonable prices Italy is beautiful, rich in artistic and cultural heritage, dotted with tourist springs and cities of art, having magnificent beaches. The purchasing power of the Italians, affected by the crisis more than in the rest of Europe, has brought down the price of real estate in Italy, which are now relatively cheap. There are many judicial auctions where you can get bargains Its climate is mild and temperate Its population has the reputation of being cheerful and friendly Italian real estate market boosted by foreign investment in second quarter of 2017 During the second quarter of 2017, nearly € 4 billion was invested in the Italian real estate market, representing € 5.8 billion for the first half of the year, with a 58% increase compared to the same period last year – and thus establishing the largest volume of real estate investment ever recorded in a period in Italy. Interest in the sector is therefore very strong in the first half of the year, with dynamic activity “plus” and growth in both the average value and the number of transactions compared to the first half of 2016. This is what emerges from the analysis of CBRE, the leading real estate consulting firm. 80% of investments in Italian real estate came from abroad Foreign capital accounted for 80% of total investment in the first half of the year, at around € 4.5 billion, an increase of 67% compared with the first half of 2016. The share of Italian investment continues To improve with more than 1 billion euros invested in the first six months of 2017. In terms of sectors, offices still have the largest share of investments: 2 billion in the first half of 2017 (+ 30% compared with the first half of 2016), followed by retail sales totaling 1, 2 billion (+ 76% compared with the first half of 2016). The volume of replacement investments is high at 992 million, almost twice as high as the first half-year 2016. Logistics, which began this year, continued to attract investors’ interest in To reach a total of approximately 800 million investment (+ 291% compared to the same period in 2016). Even the hotel sector, with 770 million (+ 49% in the first half of 2016), continues to attract more and more investments. As regards geographical areas, there is an improvement in the Roman market, with € 1 billion invested in the first half of 2017, an increase of 30% compared with the same period in 2016. Milan reached an investment volume of 1.8 billion euros, 25% more than in 2016; of these, 48% relates to the office sector. Milan and Rome then confirm that they are the most attractive places for investors, accounting for 50% of total investments in the first half of this year.