With the spread of the pandemic the price of real estate in Italy has undergone a downsizing. But the values are destined to grow again and therefore now, and in the coming months, opportunities open up to do business. In this article, the Experts of Projections of Bag will indicate why it is worthwhile to invest now in the house and where to buy.
Because house prices have fallen
The coronavirus has created problems for many economic activities. Among these is also the real estate market, which has practically stopped in the last year. In particular, the rental sector has suffered a bad stop.
There is no demand for students, off-site professionals, seasonal workers, tourists, etc. These categories fueled the rental market, particularly in the short and medium term.
Consequently, that portion of the investment-oriented real estate market slowed down. Those who had in mind to buy a property to make it income, in the last year have blocked investments.
The momentary impact of the virus on the real estate market
But this situation of immobility will not last much longer. When Covid 19 is eradicated and the economy returns to normal, investments in the real estate market will resume and prices will rise again.
It follows that this is the moment to think about new investments, when prices are at their lowest. Prices are likely to remain stable over the next six months, or perhaps decline again. But it is possible that by the end of the year, prices will rise again.
Why it is worth investing now in the house and where to buy
What are the cities where it is more convenient to invest, for those who buy and want to make the property income with the lease? According to a survey by Idealista, a real estate service company, in Italy the big cities, particularly in the center and north of Italy, are the favored ones. Because they are the ones that have seen lease values rise on average.
In particular, Milan, Turin, Florence, Bologna and Rome have had a higher average increase in the rent in the last year. For example, in Milan there was a growth of 6.8%. In Turin there was an increase of 6%.
The reality of Padua is also interesting, with an increase of 7%. Being a well-known university city, the demand from university students has obviously influenced its growth.
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Besides, the good way to invest is getting Golden visa in Italy:) However, the golden visa for Italy has not become so popular as similar programmes for Greece, Spain, and Portugal. To solve this problem and revive the country’s economy amid the COVID-19 pandemic, the Italian government cut in half the minimum entry threshold for two most attractive investment options — investment in an Italian company and a start-up. According to Tranio, the advantage of this Golden visa is that the holders of an investment residence permit are entitled to work and carry on business in Italy:)