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According to ColdweIl, the high-end real estate market (luxury real estate) is in a strong position and will remain so in 2023
Approximately 92% of respondents residing in the United States are considering buying a property abroad, including Italy
According to Gate-away.com, in the period between June and August 2022, the greatest requests concerned Lake Como (7.34% of the total), Salento (3.84%), Valle d’Itria (3.61 %) and Lunigiana (3.44%)
For the past two years, restrictions related to international travel have led wealthy American investors to purchase luxury homes within U.S. borders rather than abroad. However, with the travel green light, interest in international properties has been rekindled. And among the most sought-after European destinations in 2022 in Italy. We learn this within the report published by Coldwell banker global luxury, in collaboration with Censuswide, Institute for luxury home marketing, and Wealth-X.
Trends in the luxury real estate market
According to ColdweIl experts, the high-end real estate market (luxury real estate) is in a strong position and will remain there in 2023. Luxury home prices have appreciated by 60 percent since 2017, and the increase shows no sign of stopping. Moreover, about 92 percent of respondents residing in the United States are considering buying a property abroad. And the primary reasons driving this interest include
a strong U.S. dollar,
the rising cost of living,
rising home prices, and
the domestic political climate.
Americans and the desire for a home abroad: in Europe and in Italy
After the covid stop in 2022, pent-up demand–coupled with the quest for investment, diversification, lifestyle, economic factors, and even political uncertainty–has thus begun again to push affluent Americans to look elsewhere in the world to meet their real estate needs.
And among the most popular European countries to buy homes, according to Coldwell Banker Global Luxury specialists, is Italy. “Second homes have become the ‘plat du jour’ in European destinations such as Tuscany, Barcelona and St. Tropez,” the report says, “with Italy remaining one of the most attractive countries for foreign investors due to its flat tax, historically lower home prices than in the United States and favorable exchange rate.”
“Both the residential and commercial real estate markets offer numerous investment opportunities for international citizens coming to Italy. The government has also introduced specific programs for affluent individuals (Hnwi) who wish to move residence to Italy by purchasing a property in the country,” said Roberto Gigio, president and CEO of Coldwell Banker Italy. “Over the past two years, we have received many requests from potential buyers from the United States who, due to restrictions, have not been able to come to Italy. Fortunately, in recent months things have changed. This summer, there have been many U.S. clients who have approached our agencies in Italy.”
The vital interest of international investors in the Italian market during the summer had already been anticipated by other operators. In the June-August quarter, 2022-according to data compiled by the global real estate portal Gate-away. com-foreigners who had chosen Italy to purchase a second home had grown by 0.24 percent y/y, with Americans, Germans, and British remaining the main interested parties. Going into the details of the ranking by nations, investors from the United States had risen 29.6 percent (out of total applications for the period) with an increase of 16.91 percent over 2021, followed by those from Germany (with +12.92 percent out of total applications for the period) and the United Kingdom (8.13 percent). It should also be noted that French citizens recorded a substantial leap forward: compared to last year, their requests grew by 32.27%.
The most popular Italian destinations by international investors
In terms of areas, according to Gate-away.com, in the period between June and August 2022, the highest requests were recorded for Lake Como (7.34 percent of the total), Salento (3.84 percent), Valle d’Itria (3.61 percent) and Lunigiana (3.44 percent).
Looking at the performance with respect to 2021, the most remarkable growth was recorded by the Gargano area, with +457.14% year/year of requests. Elba Island followed this with +157% y/y, Cilento with +131.7% of requests, Garfagnana (+87.5%), and Chianti (+45.4%).
At the regional level, however, Tuscany remained the ideal half with +19.23% of total applications, up 16% from the same period in 2021. In second place was Lombardy with +11.7 percent (-1 percent y/y), while in third place was Puglia with +8.23 percent. Also, at the regional level, however, the highest growth compared to 2021 was recorded by Sardinia with +73.87% y/y, followed by Valle d’Aosta (+40% y/y).
