Confidence rises in Italy

The euro is currently at its lowest level against the pound in seven years; as a result, the confidence of overseas buyers is increasing.

Rupert Fawcett, head of Italian sales at Knight Frank, said: “As we move into the traditional spring selling season, more good quality homes are coming on to the market. Not only are vendors being more realistic on price but in some cases prices are 30% below their 2009 peak, with even larger margins being observed in areas such as Umbria and Lombardy. There is a growing sense that prices have reached the bottom of the curve and that whilst we are unlikely to see price growth in the short term, we are also unlikely to see significant falls.”

The European Central Bank’s recent decision to introduce quantitative easing could lead to a stronger euro and it has strengthened the confidence of purchasers. On the other hand, the Greek election result has not had any effect on the number of enquiries.

Italian properties are definitely attracting more enquiries and viewers. For example, Knight Frank has seen its number of viewings leap by 31% between December and January.

Tuscany has always been a favourite with buy-to-let investors, but Venice, Rome and Liguria are also proving popular.

The increasing interest in properties in Venice and Rome reflects the increased interest in city living, with Florence also being a popular city with investors. For many the interest is motivated by the opportunity for an improved lifestyle in another country, but for others the motivation is the potential investment opportunity that a city property purchase affords.