The luxury property market in Italy is now at its hottest in years. Overall sales in luxury property in Italy in 2021 reportedly grew by an estimated 20%. And why wouldn’t they be? Who doesn’t dream of owning a piece of property in Italy?
I’m the CEO and founder of Italy Property Consulting, where I help foreigners looking to invest in properties in Italy. My goal is to help my clients find their dream property and take care of all the hard work so they don’t have to. If you’re considering investing in luxury Italian real estate, it needs to be done wisely and there a lot of things to consider.
First Steps
If you are thinking about investing in a luxury property in Italy, you should first congratulate yourself on thinking outside the real estate box and opening your mind to what can be an exciting love affair with La Dolce Vita. What I would encourage you is this; start thinking about WHERE in Italy you want to purchase property and WHY? Is the area somewhere you have been before, could you see yourself regularly visiting, have you envisioned your perfect day in Italy and does where you want to buy reflect that perfect day?
It’s also important to really consider the entire area: location to airports, amenities, popular towns, beaches, etc.
In Demand Now
Puglia has been the top destination in Italy for over 3 years running and has surpassed Tuscany. Why are people so obsessed with Puglia? Apart from the stunning Baroque architecture, whitewashed towns, divine gastronomy and crystal-clear coastline, it is a highly popular destination for tourism, which has had a huge knock on effect on the real estate market. Second to Puglia is Tuscany, with Sicily also becoming a very popular spot for holiday rental investing, as well.
Residency Cost
How much a residence will cost involves a lot of variables. What type of property a potential buyer is looking for, whether it be a country home with pool, an apartment in a historical center, the proximity to beaches, tourist spots, airports and transport, etc. There is honestly no “average” price, but you would be surprised at what you can find for sale if you are guided by the right people who are experts in their field and have your best interest at heart.
Investment
If you want to turn your property into a highly profitable holiday rental, you need to think about the location of the property. Is it close to the airport? Popular tourist hotspots? What kind of property is it—luxury or rustic? And what services are available within the property? What it comes down to is considering your target market and ideal guest.
Are they couples or families? If it's the latter, is the property equipped to host small children, are there any dangers, will you be providing the necessities such as highchair, changing table, cot etc. Remember that luxury travel isn’t just for singles and couples, since in recent years, more families than ever are traveling in luxury and style.
How will you greet your guests? Will you offer a welcome basket with local produce and a bottle of wine? What types of services will you offer your guests? Cooking classes, private chef, personalized tourism, etc. All of these elements really help with going the extra mile in obtaining excellent reviews which in turn create repeat guests and a great rating against your holiday rental investment.
Holiday rentals
If you are seriously consider investing in luxury Italian real estate with the long-term goal towards renting the property as a high-end holiday rental, put yourself in the shoes of your potential guest. Imagine experiencing the holiday in their eyes. What can you do that will enhance their stay and experience? Location as mentioned before is crucial, accessibility transport wise. Stake out your competition on Airbnb/VRBO. What types of properties are available, prices, reviews etc. Are there any gaps that you see that you can fill?
End Note
Remember to enjoy the process when searching for your luxury real estate investment in Italy. It can take time and effort to find the right property for you, but I can promise you that in the end, when you’re bathing in the sun by the pool at your house in Monopoli, Puglia, with the beaches just minutes away, it will all be worth it.
Article by Nikki Taylor
