The Italian economy is historically fluctuating. Sometimes, it undergoes a depression that can last more than a century. For instance, the Italian economy was perhaps Europe’s most prosperous during the Renaissance. Then, European nations started colonization of Africa, Asia and America, becoming richer and richer. Micro-states or cities in the peninsula (Italy became a nation only in 1861) weren’t neither big nor powerful enough to colonize. So a certain economic decadence began, because European nations became more competitive than the small states in the peninsula that is nowadays Italy.
Nevertheless, there sure were decades, like the 80s and the 90s, when the Italian real estate became and stayed really expensive, compared to European real estate in general. Generally speaking, Italy often offers interesting opportunities for real estate investors.
The pros of investing in Italy
- Italy’s incredible cultural and artistic heritage is a sort of insurance against excessive devaluation of the Italian housing market. Indeed Italy will always draw tourists by the millions, and investors by the thousands. World renowned artists as Sting own secondary residences in Italy.
- The same can be said for the sweet, temperate climate and its beautiful natural landscape, so various and rich.
- Idem for wine (in 2015 Italy was the first exporter in the world) and food.
- Italian population is huge compared to the habitable land. These guarantees quite stable prices for real estate, since the demand for housing is never sluggish.
- Italians care much for their homes. Normally, they are well-built and well decorated.
- Italian excellence for design and architecture is worldwide recognized.
- The 2008 recession has weakened both Italian banks and families. This has brought down real estate prices, to a level never seen in the last 50 years. Real estate prices in Italy have bottomed, they are more likely to recover than decrease further.
- Many Italians live abroad, which renders Italian legislation, is not favorable, at least not disadvantageous for foreign residents altogether.
- Traditionally, Italians like and welcome foreigners.
- They Italian style and way of living has many fans worldwide, you might as well become one of them.
The cons of investing in Italy
- Italian legislation can be complicated, you’d better take advantage of legal counsel if you are to invest in Italy.
- Italy’s infrastructures, motorways, roads, Internet, phone and railway networks are not as performant as in Germany, France, Netherlands or northern European countries.
- Traffic jams are frequent in big cities. Driving can be slow.
- The peninsula, because of its geographical situation, is not so well-connected with the rest of Europe. The Alps are quite a barrier if you follow to Italy by car or train. Nevertheless, airports are numerous and flights frequent and often cheap.
Italy is always been a remarkable country. Its charme is evident and solidly established. Investing in Italy can hardly be a waste. The profitability of a real estate investment in Italy oftentimes depends on the economic conjuncture. Sometimes prices skyrocket, but now they are historically quite low. So…