Inflationary growth has been clear for over a year and constantly reported by the media, with forecasts that run after each other and are always up compared to the previous month; the stock market has already shown the first signs of decline for a few months, property prices in America and in the main western and eastern capitals have been growing since the second part of 2020 with a real boom in 2021, but all this was not enough so far to the Italians to hurry up to buy real estate in the city, at least until this autumn when something changed and made it clear that they had to avoid losing the best opportunities.
In a significant reality such as that of the city of Florence, about half of the perhaps 30 truly prestigious properties that were on sale in the center at the end of July were purchased between September and November, mostly by foreigners.
Foreigners have returned to fly to the airports of Italy and to crowd not only hotels and airbnbs but also real estate agencies specializing in “second home” to buy, and this autumn they literally raided the best unsold pieces until the summer 2021, so much so that in a significant reality such as that of the city of Florence, about half of the perhaps 30 truly prestigious properties that were on sale in the center at the end of July were purchased between September and November, mostly by foreigners. The Italians, who were already looking for but who believed they could get a better price, were finally suddenly aware of this, and the mails and telephones of real estate agencies are back as hot as in 2007.
Waiting any longer for Italian buyers would not only be fruitless but deleterious because the phenomenon of price growth of 20% on average which took place between the second half of 2020 and 2021 in Los Angeles, London, Amsterdam, Dubai, with sales volumes even doubled to Singapore compared to 2019, is now happening in Italy where it has just begun, as usual with a year delay compared to the major world capitals, due to a typical indolence of the local real estate market to incorporate the indications of the world market, the reasons for which it would be interesting to discuss in a round table between experts in the sector, economists and sociologists.
For the record, the Italians had already become particularly active in the purchases on the coast, of second homes for the holidays in the last calendar year, and I had written about this several times in previous articles already in the second part of 2020, when I noted how instead the interest in the city was modest then, while now it is clear to everyone that it is not advisable to delay any longer because “he who sleeps does not catch fish” or rather with an expression dear to the Anglo-Saxons and much more suited to the current situation because YOU SNOOZE YOU LOSE , as others will come before you on the best items.
Because it is precisely the luxury objects that are attacked and particularly those with panoramic and monumental views, as well as those with a terrace or garden, but above all those inserted in condominium contexts (Palaces or large fractionated villas) just completely renovated in the addresses more prestigious, which are numerous in cities like London and New York but very few in the main Italian cities, with the sole exception of Milan, perhaps where this type of offer is present thanks to the initiatives of various real estate funds.
Waiting any longer for Italian buyers would not only be fruitless but deleterious because the phenomenon of price growth of 20% on average which took place between the second half of 2020 and 2021 in Los Angeles, London, Amsterdam, Dubai, with sales volumes even doubled to Singapore compared to 2019.
This scarcity of supply is also evidenced in a recent article in the FT weekend of November 27 about Barcelona where it is highlighted that the necessary “Stock” of products is lacking in the city for the demand that has exploded again there with the reopening of flights.
To conclude this brief analysis, in my opinion it is reasonable to think that the prices of the main Italian cities and cities of art, which have remained stable during 2020 and the first half of 2021, will see an increase of 20 by the end of 2022. % on an annual basis limited to the most prestigious properties, an increase that is already underway with various prices already revised upwards in recent days by the few active developers / builders, who have resumed selling since September and therefore see their offer of scarce product now compared to a growing and varied demand.
Opening snapshot is taken from the “Under The Tuscan Sun”
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