With St Valentine’s day upon us, what better place for overseas property investors to consider than Venice.
The City of Bridges is deemed one of the most romantic places in the world. Famed for its gondola rides to explore the many canals spanned by even more bridges, Venice springs to mind whenever romance is mentioned.
This year St Valentine’s day has also coincided with the Carnival, which started on 11th February with the amazing floating show on the Rio di Cannaregio, and carries on for 3 weeks.
The festivities include regattas, costume competitions and masquerade balls and the carnival is a huge draw to tourists from all over the world.
With the carnival comes the demand for accommodation from the visitors, and many are prepared to pay huge rental costs for the opportunity to stay in the heart of Venice during the carnival’s three week duration.
Some of the most popular and grandest properties in Venice can demand up to around €20,000 per week in rental during carnival time.
Demand during the carnival, coupled with the summer’s Art Biennale festival which runs from May to October, can go a long way toward the cost of owning a property in this historical city. Managed correctly, the right property can show a good profit for investors.
Prices tend not to be cheap in Venice, with properties in the central San Marco or Dorsoduro areas commanding prices of €929 to €1,115 per sq ft. However, if you consider the slightly less touristy area of Castello prices reduce to a more reasonable €743 to €836 per sq ft.
According to Savills, Venice rates third-highest for yields out of 12 popular prime second-home markets. This is based on its relatively low entry level for prime market properties, high hotel prices, and the small size of the rental property market.
Jelena Cvjetkovic of Savills confirmed: ‘Although 80 per cent of our buyers seek rental returns, it’s always an emotional purchase in Venice. Either you are in love with Venice or you are not prepared to be there at all.’