Can I buy a house or an apartment in Italy today?
Russians
In accordance with the Resolution No. 328 of the Council of the EU dated 02/25/2022, which is associated with the outbreak of hostilities in Ukraine, Russian citizens cannot keep more than 100,000 euros on their bank accounts in EU countries. At the same time, there is no official ban on real estate transactions for holders of a Russian passport.
However, in reality, it is not yet possible for Russian citizens to open an account in Italy. Even if there is one, any transactions are difficult. So, a realtor of one of the agencies says that a customer from the Russian Federation was hardly able to make a transfer through her account opened back in October 2021, since the bank's director called and asked to use it only in case of emergency. A very long bureaucratic procedure for each operation.;. Part of the funds was managed to be spent using the notary's deposit. But the amount was relatively small, in the range of 300,000 euros. If we are talking about expensive real estate, then the probability of buying for a client with only a Russian passport tends to zero.
Note that those who have previously issued a residence permit in Italy or have a second citizenship (for example, many countries of the former USSR), these restrictions do not apply. They can still use bank accounts, open new ones, and purchase real estate.
Tips from realtors
Italian agencies that have been working with investors from Russia for a long time recommend finding a notary who would agree to make a deal, since not everyone goes for it. The calculations for the purchase are carried out through a special deposit opened by a notary. (A similar scheme works in Spain, we wrote about it in the material "Whether to sell an apartment abroad").
If the client has a residence in Italy, and he needs to transfer funds from Russia to his account or the account of another individual in an Italian bank, this can be done through a bank that is not disconnected from SWIFT and supports such transactions, for example, Raiffeisenbank. However, it should be borne in mind that the recipient's bank takes 2-3 days for a special crediting procedure. In addition, it happens that the transfer does not pass and is returned. In this case, you can try to make a transaction through another bank. And, therefore, it is advisable to have accounts in at least two Russian banks operating in the SWIFT system.
The realtors of Italy, with whom we spoke, emphasize that neither the notary, nor the banks, nor the police, nor the judiciary have absolutely no bias against Russians. The problems are related solely to the interpretation of the new EU regulations and the fear of taking responsibility.
Summary
For Russians who have a residence permit in Italy or a second citizenship, the situation with the acquisition and ownership of real estate in this country is favorable. Although there are some inconveniences, for example, related to the lack of direct flights from the Russian Federation and difficulties in transferring funds from Russian banks.
For everyone else, real estate in Italy is now like grapes from a famous fable. If desired, the transaction can still be carried out if the purchase amount is relatively small, and it was possible to find a notary who will assist.
Due to restrictions, the number of Russians among investors has decreased in all segments. Wealthy buyers from the Russian Federation have shifted to the UAE, and representatives of the middle class to Turkey.
Ukrainians
Citizens of Ukraine can open accounts in Italian banks, as well as purchase real estate, except for agricultural land.
Those who arrived in Italy after February 24, 2022 must first apply for "temporary asylum". To do this, one of the citizens or residents of the republic must provide "hospitality", that is, an invitation to live in their house.
Kazakhstanis
Italy adheres to the principle of reciprocity in legal terms. Thus, on the basis of "mirror" agreements, individuals from Kazakhstan cannot purchase real estate in Italy, and vice versa. The way out of this situation may be the opening of a residence permit with the subsequent purchase of real estate in the status of a resident, or the purchase of a real estate object for a company that can be opened through an Italian notary.
Belarusians
Citizens of Belarus who are not included in the international sanctions lists can purchase real estate in Italy.
Italian real estate market
Trends
Market Italian real estate traditionally stable, low-volatility. Even during the 2008 crisis, house prices fell by an average of 10%, while in other countries the decline was 40-50%. This is due to the fact that Italians are more likely to refuse to sell than to give a big discount. They are sensitive to their property and part with it extremely reluctantly. In addition, a significant share of the market is the elite segment, which is not sensitive to changes in market conditions.
Of course, the COVID 19 pandemic had a significant impact on the Italian market, as, in fact, on other countries. A significant drop in sales was observed only during the total lockdown in March-April 2020. Immediately after the first easing, the market began to recover due to local demand. Moreover, new trends emerged almost immediately.
Firstly, the popularity of suburban real estate has grown, as well as housing in resort regions such as Tuscany, Umbria, Sardinia, Veneto, Trentino Alto Adige. Secondly, people began to be interested in offers of a larger area. Moreover, if it is a villa, then it should be with a garden, and if an apartment, then a terrace or balcony will be useful. According to the CENTURY 21 agency in Italy, the demand for objects with a balcony or terrace has increased by 50% in 2 years. It should be noted that these trends are also observed in other countries, for example, in the UK and the USA.
In 2021, after the return of buyers from countries whose citizens were allowed to enter Italy, the market became even more active. According to the portal Immobilare.it , the volume of sales in 2021 increased not only compared to the problematic 2020 (+34%), but also from 2019 (+24%). According to analysts, this is not just about a "technical" recovery compared to the year of quarantine, but a general trend for the growth of the residential real estate market.
The largest number of transactions, more than 159 thousand, in 2021 was recorded in Lombardy. Molise leads in terms of annual sales growth (+42%), followed by Liguria (+38%), Calabria (+38%). Of the major cities, the largest increase was recorded in Genoa (+32.2%), Rome (+31.4%) and Florence (+29%).
In Italy, the secondary housing market prevails, accounting for 80% of the total. There are few new buildings, only 20%, so real estate prices in new projects are high.
Investors should also keep in mind that many objects that are sold in Italy will require quite substantial repairs.
Real estate prices
Real estate in the north of Italy is traditionally more expensive. The available offers are concentrated in the south, mainly in Calabria and Sicily. However, a lot depends on the location and the specific object in a particular region.
According to the portal Immobilare.it in June 2022, the average price for apartments and houses ranged from 2952 euros per square meter in Trentino Alto Adige to 923 euros in Calabria. The average cost of real estate in other regions: 2522 euros per sq. m. in Liguria, 2464 euros per sq. m. in Tuscany, 2478 euros per sq. m. in Lazio, 2174 euros per sq. m. in Lombardy, 1887 euros per sq. m. in Campaigns, 1775 euros per sq. m. in Veneto, 1136 euros per sq. m. in Umbria, 1124 euros per sq. m. in Sicily.
The highest average rental rate in June was recorded in Lombardy (15.3 euros per sq. m. m per month), the most affordable region for renting housing – Umbria (6.81 euros per sq. m. m per month).
According to a report by the Italian National Institute of Statistics ISTAT, in the 1st quarter of 2022, housing prices in Italy increased by 1.7% compared to the previous three months and by 4.6% compared to the same period last year.
There is a high increase in prices in the elite segment. Knight Frank agency reports an increase in the cost of objects for 2021 by an average of 4%.
The Italian real estate market causes optimism among analysts, however, it should be borne in mind that in the 2nd quarter of 2022 inIn Italy, as in many other European countries, mortgage rates have increased, and this, according to a number of experts, may affect the situation.
Premium segment offers
According to the analytical company Reopla, in the period from 2020 to the 1st quarter of 2022, 4,163 objects worth more than a million euros were sold. Most of the transactions occurred in 5 regions: Lombardy (40.9% of total sales), Lazio (19.3%), Tuscany (14%). This is followed by Campania and Sardinia.
Milan, located in Lombardy, is the absolute leader in the high-budget segment. 37.5% of the total number of transactions was recorded here. At the same time, most of the sales were concentrated in the areas of Garibaldi, Porta Venezia and Fiera de Angeli.In second place is Rome (Lazio region), which accounted for 18.7%. Expensive villas and apartments are located mainly in the historical part of the Italian capital. The third place with a share of 9% is occupied by Lucca (Tuscany region). Luxury houses are sold mainly in the elite resort of Forte dei Marmi, belonging to this province.
In the Campania region, premium residences are located in the province of Naples, in the districts of Chiaia, Posillipo, San Ferdinand, as well as in Capri.
Experts of Reopla note that buyers of real estate worth over a million euros are traditionally wealthy foreigners, but today the geography of the countries where investors come from has changed. There are more Europeans, namely, Britons, Germans, Scandinavians, «Russians have left.
Offers in the medium and low price range
The most popular destinations for foreigners with a budget of 200,000 euros –Lombardy, Liguria, Lazio, Veneto.
In Tuscany, investors are attracted by medieval towns in the Val d'Orcia and Valdiquiana valleys, such as Montepulciano, Pienza, Cetona, Arezzo, Cortona.
In Umbria, experts identify territories bordering Tuscany, as well as picturesque towns around Lake Trasimeno, Citta della Pieve, Castiglione del Lago, Passignano. The larger cities of this region, such as Orvieto, Todi, Spoleto, Assisi, also find their admirers.
Traditionally, offers in the area of lakes are in special demand: Como, Garda, Maggiore, Lugano, Iseo. For example, on the sunny west coast of Como, it is worth considering small cozy towns: Menaggio, Tremezzo, Mezzegra, Argegno, Moltrasio, Cernobbio and others.
The available offers, from 70,000 to 200,000 euros, are concentrated mainly in the Calabria region and Sicily.Stories when people bought small apartments in excellent resort locations for very modest amounts are not uncommon here.
In Italy there is a separate category of real estate, the so-called "houses for 1 euro". These are old dilapidated abandoned buildings that require restoration and investments from 150-200 000 euros and above, depending on the condition. Often such objects do not have a roof, there may be no ceilings and glass in the windows. Of course, it is impossible to demolish the walls and build new housing, only to restore it. For connoisseurs of buildings with a history, such houses located in quiet picturesque corners of Italy are a real treasure, but it will be necessary to spend a lot of money and effort.
Cities offering facilities for 1 euro: Ollolai, Nulvi (Sardinia), Sambuca, Bivona, Cammarata, Mussomeli (Sicily), Borgomezzavalle (Piedmont), Fabbrice di Vergemoli (Tuscany) and others. Potential buyers must not only agree to the restoration, but also comply with a number of additional conditions: pay a security deposit in the amount of 1,000 to 5,000 euros, depending on the city, as well as submit their repair plan to the city council. At the same time, the work must be completed on time, usually within three years.
Thank you for your help in preparing the material of our experts in Italy:
Elena Dvurechenskaya, director ITALCASA
Yulia Titova, head of Rentsale
Yulia Sharenko, Customer Service Manager Great Estate Immobilare
Author: Elizaveta Barskikh
