Home sales in Italy rose last year, driven by foreign buyers taking advantage of the attractive exchange rate and snapping up properties in Tuscany, Umbria and Liguria. The number of residential property transactions in Italy increased by 7% in 2015 while price growth re-entered positive territory, according to a new report by real estate consultancy Knight Frank. The research also found that buyer inquiries were up by 57% from the previous year. “There are positive signs that the market is strengthening,”said Rupert Fawcett, head of sales in Italy for Knight Frank. “Buyers with access to cheap finance and those foreign buyers able to take advantage of the favorable exchange rate are deciding to act.”
Across Knight Frank’s nine luxury second-home markets in Italy, price performance in 2015 was highest in Venice, with growth of 2.1%, while the island of Sardinia experienced the greatest decline, dropping 3%. Knight Frank’s data found that users of 171 nationalities searched for Italian properties on its website during 2015, with British, Italian, U.S. and German buyers remaining the most active. Tuscany, with its rolling hills and Renaissance architecture, continues to generate the greatest interest from buyers. Slightly more rugged Umbria comes in second. According to Knight Frank, buyers rarely look at both, but the price gap between regions is narrowing as properties in Tuscany, the more expensive of the pair, more frequently need modernizing. For opportunities beyond the big two, Liguria—a long-time holiday home destination for Italian buyers—is regaining its appeal with British, American and northern European buyers. The western side of the region is easily accessible from the Nice airport and offers far greater value for money than the Cote d’Azur. Liguria’s coastal towns, such as San Remo and Bordighera, are enjoying a resurgence in popularity. Currency fluctuations over the past two years have boosted the purchasing power of British and American buyers in Italy. A British buyer purchasing a €1 million property in January 2016 would have seen a 12% price reduction compared to the same period two years ago, while a U.S. buyer would have saved $288,000, the equivalent ofa 21% price cut. “With QE stimulus still in place across the Eurozone and the dollar likely to strengthen in 2016 on the back of the Federal Reserve’s rate rise, we expect foreign buyers to continue to benefit in 2016,” Mr Fawcett said. View full listing (pictured top)