_How many square metres does €1m buy you in Italy’s top second home destinations?

Portofino, perched on the cliffs of the Italian Riveria sits in second place (67 sq m) but compare this to Maremma and Umbria where prime prices are close to €6,000 per sq m, and a million euros buys around 167 sq m of floorspace.

A million euros in Rome, Italy’s most expensive city, buys 83 sq m but Venice and Milan are not far behind with 91 sq m and 100 sq m respectively.

Wealth flows, shifts in currency, new flight routes and the health of the local economy all act as drivers of demand but the key motivation amongst overseas buyers in Italy remains the lifestyle it offers.

Although British buyers are finding Italy and the wider Eurozone more expensive, Euro denominated buyers are hunting for, and in some cases finding, good value. US buyers have yet to pick up in large numbers, despite the favourable USD/EUR exchange rate, but we expect enquiries to strengthen during 2017.

Unlike France, the UK, Australia and Canada, Italian policymakers are showing little appetite to increase taxes or deter foreign investment. On the contrary, Italy’s new non-dom tax incentive, will mean UHNWIs opting to become Italian residents will be subject to a flat rate of tax for all foreign-sourced income.

2016 proved a turbulent year, but that’s nothing unusual in Italian politics, and although both the domestic and global economy are facing their own respective headwinds, we expect prices will stay largely static, we don’t see immediate rises or substantial declines on the horizon.

For the full analysis read our Italian Prime Residential Index, extracted from our Italy Insight 2017 publication.

For more information on the Italian property market or to discuss any property requirement you might have please contact Rupert Fawcett