Italy: a real estate market in good shape

Just two years ago, Rome was one of Europe’s most expensive capitals, ahead of Madrid and Dublin. Today, the Italian real estate market shows a certain amount of stability, stimulated by foreign investment, English and French in particular. Major divergences between high and low-end housing prices should however be noted, both in terms of houses and apartments.

Far from the major Italian cities such as Rome, Naples, Florence, Milano, or Bologna, you can still find a reasonably priced home. The region of Lunigiana, not as well known as Tuscany, offers very good real estate opportunities.

Italy, where 81% of the population owns their home, has one of the highest homeownership rates in Europe. This can be explained by tax incentives for property ownership and a very regulated rental system (housing rentals cannot exceed 6 or 7 months a year). Nonetheless, according to real estate specialists, the rental offer should increase in 2008 due to rising interest rates on real estate loans.