_Unlocking what's behind the rising demand for luxury new-build homes in Italy
Looking for convenience and luxury without the hassle of renovation? Here, Andrew Blandford-Newson, Senior Negotiator and Aldo Flakstad, Head of Residential Developments in Italy, share their expert insights on this growing market.
Below, they discuss the luxurious amenities and eco-credentials of these developments, as well as the stand-out projects buyers should have on their radar.
You can find out more about our Italian offering in our newly released publication, Italian Homes, Villas & Estates.
What’s the driving force behind the increased demand for residential developments in Italy?
We’re seeing a shift towards ready-to-move-in properties as a larger proportion of buyers are looking for convenience and routes to enter the market without necessarily having to put in the work on the property. These buyers are willing to pay a premium, which opens the door for developers to go above and beyond to accommodate this increasing segment.
There are good incentives for buyers, such as paying a 4% tax on a new development that’s a primary residence compared to the standard 10%, and there’s no Capital Gains Tax to pay if residents have owned the property for more than five years.
Meanwhile, developers are focusing on delivering high-quality, luxurious finishes, which brings the profile of developments to a new level that attracts international buyers - but Italians are quickly following.
Palazzo Ponte Piccolo development, Venice (price range of €2,800,000 - €9,500,000)
Why buy new instead of old?
The excitement of being part of the process of deciding on finishes and layout instead of going through a long process of reconfiguring a property is attractive to many people. Also, knowing what you’re getting for your money and the value of the investment is important. Many people will still buy a “fixer-upper”, but the landscape has changed.
It will be interesting to follow this as we see more branded residences enter the Italian market every year. In the not-so-distant future, we’ll see established high-end brands market residences as part of resorts and hotels. We know this will attract buyers looking for turn-key properties, but at the same time, it’s critical to make these buyers feel at home with the chosen brand.
What amenities and eco-credentials do these developments offer?
Developers in Italy are launching their projects with a big focus on sustainability, supported by incentives from the government. We’re also seeing developers looking at other markets and offering similar managed and serviced properties.
Amenities include in-house gyms, lounges for residents, business centres, catering and relaxation facilities. Knight Frank in Italy has a separate company offering management services to property owners. As of 2023, these will also be provided to developers, which they can include in their packages.
Who are the clients buying property in these new developments?
Most buyers are from the international community; they want to spend a certain amount of time in Italy every year without booking accommodation. We find many of these buyers enter their property into a rental pool to increase the return on their investment, or share their property with family and friends.
Pure investors are not as present yet, but with an increase in branded residences, we believe this segment will grow. There’s also a growing curiosity among Italians regarding these types of properties. We know there’s a lot of investment capital in Italy, and the expectations are that also Italians will come into the market.
What stand-out developments should buyers have on their radar?
We’re very excited about the development we are marketing in Venice, Palazzo Ponte Piccolo. It’s a small project with seven apartments on the relaxed Giudecca island. This development is unique and high quality in every sense - from the finishes and materials to the spacious layout and amenities.
It will be a fully serviced development offering a spa, gym and swimming pool, a private garden and mooring for boats. What sets it apart from the rest is that it will be one of the last projects allowed to be developed in Venice, as there is a ban on new hotels and apartment projects. The developer has put a lot of effort into creating a project that looks to tradition, using local products that buyers will recognise from the cultural history. It’ll be a true gem for buyers who want to experience authentic Venice.
Rocco Forte Private Villas, Sicily (3-7 bedroom homes priced from €2,390,000)
We're also excited about Rocco Forte Private Villas in Sicily. These branded residences are luxury homes that combine the extensive five-star services of the Verdura Resort, including an exquisite golf course, spa and superb dining options - all set against around 230 ha of stunning Mediterranean coastline.
Meanwhile, Marina di Scarlino, a coastal development in Tuscany (expected to complete between September and December 2023), is one of the few opportunities to live a true boating lifestyle and have a luxurious home at the same time.
Located on the Tuscan coast close to the Maremma wine country, it’s a perfect choice for the more active buyers and offers the opportunity to be part of an international boating community. It’s also part of a resort that offers high-end restaurants, shops and yacht club use. The project will be completed between September and December this year.
Marina di Scarlino, Tuscany (price range Of €690,000 - €1,365,000)
What makes you best placed to act on behalf of clients in Italy?
As the world’s only independent real estate partnership, the experience we offer is always backed by industry-leading expertise. Knight Frank also has one of the largest International Residential Sales teams of all agents in the UK. With a dedicated Italian sales team who personally know all the properties for sale, regularly visit the country and do not just pass over leads.
We offer a ‘hand-holding’ service to clients and, most importantly, work very closely on a daily basis with the local teams in order to look after both sales and buyers when on the ground. This allows us to be both locally expert and globally informed. It is the long-term experience and approach that sets us aside from most of our competitors and has meant we have handled some of the most prominent sales in Italy over the last several years.
What top tips do you have for buyers looking at residential developments?
I would suggest that a buyer singles out a location and decides which amenities will satisfy them. It’s also important to consider whether you want to be part of a branded residence concept or a free-standing development. This could influence and perhaps change the focus on location.
Decide on your budget and timings. If you’re an international buyer, it’s essential to engage in the bureaucratic process sooner than later. Apply for residency, get the tax number (Codice Fiscale), open a bank account, connect with a lawyer, look at logistics, and engage Knight Frank as your adviser when walking the road to realising your Italian dream.
For more information, get in touch with Andrew today:
Email: andrew.blandford-newson@knightfrank.com
Tel: 020 3640 7048
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