Types of properties
that foreign investors are looking for in Italy. Trends of recent years.
Typologies of Real Estate Properties
In recent years, foreign investors have shown increasing interest in the Italian real estate market, driven by the country’s rich cultural heritage, diverse landscapes, and appealing lifestyle. The types of properties sought by foreign buyers vary depending on their goals, whether for personal use, investment, or a combination of both. Below are the key typologies of real estate properties that have been trending among foreign investors in Italy, along with recent trends and tendencies.
Cascina, Rustico
Rural Properties and Farmhouses
- Typology: Historic farmhouses, often referred to as “rusticos” or “casales,” are particularly popular. These properties typically feature traditional stone architecture, large plots of land, and are often located in scenic, rural areas.
- Popular Regions: Tuscany, Umbria, Marche, and Piedmont are top choices due to their picturesque landscapes and relative proximity to major cities.
- Trends: There’s a growing trend of buyers seeking to restore these properties, blending traditional charm with modern amenities. Some investors are turning these into agriturismos (farm stays) or boutique hotels.
Luxury
Villas & Estates
- Typology: High-end villas and estates, often with swimming pools, extensive gardens, and panoramic views, attract wealthy individuals looking for second homes or vacation properties.
- Popular Regions: The Amalfi Coast, Lake Como, Sardinia (Costa Smeralda), and Tuscany (Chianti) are particularly sought after for their prestige and exclusivity.
- Trends: There is a strong demand for properties that offer privacy and security, especially post-pandemic. These properties often cater to buyers seeking a luxurious lifestyle and a tranquil retreat.
In the City
urban flats & City Apartments
- Typology: Apartments in historic city centers, especially in major cities like Rome, Milan, Florence, and Venice, remain highly desirable. These range from compact studio apartments to large, luxurious penthouses.
- Popular Regions: Major cities (Rome, Milan, Florence, Venice) and smaller, culturally rich cities like Bologna, Siena, and Lucca.
- Trends: Foreign buyers, particularly from the U.S., UK, and Asia, are increasingly interested in acquiring city apartments for both personal use and short-term rentals through platforms like Airbnb. There is a noticeable trend toward investing in properties with historic value, such as those in palazzos or buildings with architectural significance.
Beach houses
Seaside Properties
- Typology: Coastal villas, beachfront apartments, and houses with sea views are particularly popular among those seeking vacation homes.
- Popular Regions: The Amalfi Coast, Liguria (Cinque Terre), Sicily, Puglia, and Sardinia are hot spots for seaside properties.
- Trends: The demand for properties with direct beach access or panoramic sea views has surged. Investors are often drawn to regions with warm climates and long tourist seasons, making these properties ideal for rental income.
Boutique Hotels
Hospitality Properties
- Typology: Historic buildings, small hotels, bed-and-breakfast establishments, and boutique hotels are increasingly being purchased by foreign investors looking to enter the hospitality market.
- Popular Regions: Tuscany, Umbria, the Amalfi Coast, and regions with high tourist traffic, like Florence and Venice.
- Trends: There’s a rising interest in sustainable tourism and experiential travel, leading to investments in properties that can be converted into boutique accommodations with a focus on local culture and sustainability.
Vineyards &
Winery Estates
- Typology: Properties that include vineyards or have the potential for wine production. These often come with historic buildings and expansive land.
- Popular Regions: Tuscany (Chianti, Montalcino), Piedmont (Langhe, Barolo), Veneto (Valpolicella), and Sicily.
- Trends: There’s a growing interest among foreign investors, particularly from the U.S. and Northern Europe, in owning and operating vineyards. This trend is driven by the romantic appeal of Italian wine culture and the potential for profit through wine production and agritourism.
Rural Property
Renovation Projects
- Typology: Properties in need of renovation, including historic townhouses, rural buildings, and older apartments. These are often purchased at lower prices with the intent to restore them to their former glory.
- Popular Regions: Throughout Italy, but especially in less-developed regions like Abruzzo, Basilicata, and certain parts of Sicily and Puglia.
- Trends: The appeal of these properties lies in their lower upfront costs and the potential for customization. Investors are often motivated by the opportunity to create unique living spaces or rental properties while preserving Italy’s architectural heritage.
Sustainable
Eco-Friendly Homes
- Typology: Properties that are built or retrofitted with sustainable materials and energy-efficient systems. These may include modern homes with eco-friendly designs or renovated traditional homes with green upgrades.
- Popular Regions: Tuscany, Umbria, and other rural areas where space allows for sustainable living practices.
- Trends: The demand for eco-friendly properties is rising, particularly among younger buyers and those concerned with environmental impact. These properties often include features like solar panels, rainwater harvesting systems, and organic gardens.
Castles &
Historic Estates
- Typology: Large, historic properties, including castles, palazzos, and grand estates, often with architectural significance and extensive grounds.
- Popular Regions: Tuscany, Umbria, and Piedmont, as well as smaller towns throughout central and northern Italy.
- Trends: Interest in these properties is driven by their unique character and potential for use as luxury residences, event venues, or hotels. Foreign buyers are drawn to the prestige and history associated with these estates.
Recent Trends & Tendencies
- Post-Pandemic Shifts: The COVID-19 pandemic has influenced foreign investors’ preferences, with increased interest in rural and seaside properties offering space, privacy, and the ability to work remotely. The demand for properties with outdoor spaces, such as gardens and terraces, has also risen.
- Investment in Tourism: With Italy’s tourism sector rebounding, there’s renewed interest in properties that can generate income through rentals. Short-term rental properties, particularly in tourist-heavy areas, continue to be attractive investments.
- Diversification of Buyer Nationalities: While U.S. and UK buyers have traditionally dominated the market, there’s growing interest from buyers in Asia, the Middle East, and Northern Europe. These investors are often looking for luxury properties and are more open to regions outside the usual hotspots.
- Focus on Heritage and Lifestyle: Many foreign buyers are motivated by a desire to immerse themselves in the Italian lifestyle and culture. This has led to a preference for properties with historic and cultural significance, as well as those located in regions known for their culinary and wine traditions.
- Value Appreciation: Investors are also increasingly aware of the potential for value appreciation, particularly in emerging regions like Puglia, Calabria, and Abruzzo, where property prices are still relatively low but are expected to rise as these areas become more popular.
Conclusion
Foreign investors in Italy are primarily searching for properties that offer a mix of lifestyle appeal, potential for income generation, and long-term value appreciation. Rural farmhouses, luxury villas, city apartments, and seaside properties remain top choices, with a growing trend towards sustainability and historic preservation. As the Italian real estate market continues to evolve, these trends reflect a broader desire among foreign buyers to experience the unique Italian lifestyle while making sound investment choices.