How much is real estate in Italy?

We all want to know how much that villa in Tuscany or apartment in Umbria is going to cost, but of course giving a rock-solid guide is impossible. A piece of Italian real estate, just as in any market, is worth how much anyone is prepared to pay at a given time. Prices can vary wildly — if someone falls in love with a ruined castle in Puglia and is prepared to pay several thousand euros above the asking price, have they wasted their money? Well no, because that dream home is worth it to them and ultimately this is your future you’re buying (and hopefully a future that is going to appreciate nicely over the next few years).

Having said that, there are a couple of sources of solid market information. Nomisma is an Italian real estate research agency based in Bologna; it looks at prices achieved over the previous year in the residential, private rented, commercial and retail sectors, and extrapolates prices for the coming year. Another useful source is the Osservatorio Immobilare (property observer) section published regularly by Il Sole 24 Ore, a very good Milan newspaper which is strong on business and money. We’ve given guide prices in each of our Italian region pages, but remember this is a rule-of-thumb guide to the Italy property market, especially useful for comparing one region, city or province to another, but not writ in stone.

Getting value in Italian real estate

What we’re all looking for is value in real estate. That’s why so many Americans and Britons upped and moved to Tuscany and then Umbria in the first place. And the Italian property market still delivers — sure you’re not going to find a slightly dilapidated farmhouse in Chianti for a few thousand dollars anymore, but then those people buying property in Italy in the seventies didn’t have the relative security that you’ll enjoy — cheap flights, the internet keeping you au fait with news from home, satellite TV. And if you look just a little harder you’ll find there are still bargains to be had. Pick wisely and your euros can buy an awful lot of Italian real estate.

Notice that Italy property prices are quoted in € (EURO) per square metre. This will be a little odd to UK buyers, who tend to think in terms of ‘£150,000 for a one-bedroomed apartment’ and so on. Once you get used to it, it’s a tidy way of seeing how much Italian real estate you’re getting for your money. Of course it’s still a rather blunt measure. Is this a brand new Italian apartment or a renovation property needing money spent? Is your villa in Florence in the centre of town or out in the hills? There are a hundred factors that can affect the baseline price, so treat these figures as a handy guide.

Another factor to consider when looking at the price of real estate in Italy is that the market has been bullish for the last few years — counterbalancing moribund stock markets. Expect prices to increase around 8 per cent a year, though again all can change.

Value in Italian real estate: know your market, research your area

Just like at home, nothing can beat research, research and more research. Narrow down the area you want to purchase in. Pay visits and get a feel for the local real estate markets. Visit the major towns and look in Italian real estate agents windows. Pay regular visits to the listings on KeyItaly (with a map at your elbow) and get a feel for the different pricing in different areas, what your dollar buys you in the different parts of Chianti for example.

In short, get to know your territory and you will soon get a feel for the price you should be paying.