Prime Minister Enrico Letta has caused cautious optimism in global markets, with borrowing costs on Italy’s 10-year bonds dropping below 4% for the first time since 2010.
The recent commitment by Letta to reduce the burden on tax payers will have come as welcome news to Italy’s citizens. In particular, the commitment to halt the June instalment of the controversial IMU property tax will be a relief to both existing home owners across the country and potential buyers, says estate agent Appassionata.
Although Italian real estate prices have suffered in recent years – the Federation of Professional Estate Agents’ 2012 data showed total values had fallen by almost 12% – industry experts feel that they have begun to stabilise, going so far as to predict no change in prices over the course of 2013.
The luxury property market is looking even more hopeful, Appassionata says, with one online high end property sales company reporting in April 2013 an increase in demand of 5% for luxury Italian properties in the last 12 months, further fuelled by the recent news that Italy will be leasing its disused castles, islands and fortresses to ambitious developers looking to bring in a further influx wealthy tourists.
While investors are becoming increasingly confident in the Italian property market, high end properties don’t have to cost the earth, adds Appassionata.
Dawn Cavanagh-Hobbs, the company’s founder, explains: “Appassionata’s Estate Giacomo Leopardi in Le Marche is host to two delightful fractional ownership properties – Casa Giacomo, which is now fully sold, and Casa Leopardi, of which a few fractions remain. Our ethos in renovating the properties was to offer the highest standards of indulgent Italian living at affordable prices, creating a ‘home away from home’ for our owners.”