Predictions for 2017: What Will Happen to Italy’s Property Market?
The new year, time to plan the future.
Haven’t you found your dream home for sale in Italy yet? Don’t panic, you are still in time to take advantage of the great opportunities that the Italian real estate market has to offer.
Let’s look at what to expect in 2017.
Property prices to fall throughout the year in Italy
Prices will continue their downward trend, not as quickly as before though, as confirmed by several analysts. According to the ISTAT (National Institute of Statistics), home values in Italy registered a fall in 2016 equal to 1.4% on average on an annual basis. The highest decrease was registered especially in the case of new properties, at -2.3%, compared with -1.3% for existing homes.
And in 2017? They still forecast falling prices until 2018 when they will slowly start to increase. Standard & Poor’s even reports that the positive change over the next two years (2017-2018) may only be limited to 1%.
Very convenient for those who want to buy a property in Italy in the next few months, isn’t it? As a matter of fact many people are taking advantage of this very favourable moment. The demand for houses is increasing, both by those looking for a house to move in and by those searching for an investment, whether Italian or international buyers. And how could it be otherwise if, from 2007 to now, properties all around the country have lost a 39.7% of their value?
Mortgage rates still very convenient
Achieving the dream of buying your ideal property in Italy has become even easier for the vast majority of those who need a mortgage thanks to historically low interest rates. This will definitely help those who need a loan, even though there might be an increase in the coming months or years.
In particular, the Euribor, the reference rate that determines variable-rate mortgages, will probably stay at the same level for a couple of years, while the Eurirs (which determines fixed-rate mortgages) has slowly started to increase.
The global geopolitical situation is affecting Italy
The terrorist attacks that have shaken the world in the last years have significantly shifted the interest of investors to countries considered safer from this point of view, such as Italy, at the expense of France or Turkey for example.
Not even the Brexit and the uncertainty about the future of the relations between the UK and the other European countries seem to have impacted the interest of the Brits in Italy as they continue to be amongst the greatest lovers of the Bel Paese.
And what is more, now home hunters will be able to reach Italy more easily thanks to the opening of 44 new Ryanair routes.
Do you want to invest by buying a second home? Write to me email@example.com, I will be happy to answer your questions.
Alice – www.ortalloggi.com