We love changes
The re-structuring of listed buildings and protected historic areas in the centre of towns in Italy is common place, well governed and controlled.
Statistics shows that, privately owned properties sank to their lowest point in the middle of 2013. Figures are also showing a vibrant pick up in property sales, with prices however, remaining at an historic low. This proves that singular private individual investors are currently looking to capitalise on the current market status.
Historically Italy had one of the largest percentages of private property ownership in Europe. This is now rapidly changing and is currently unsustainable:
- lack of private and institutional capital;
- the scarcity of Mortgages;
- familial breakdowns (divorce; separation);
- a growing number of Singles, Divorcees and aspirational unmarried young couples all looking for modern places to live that reflect their new non-traditional Italian.
These factors are fuelling the increase in the demand for rental properties in the market.
Generating a return through renting
Rental contract norms in Italy are a standard 4 years and automatically renewed for another 4 years, making rental income very stable and in some cases, tenants tend to stay in the property for over 15 years. Rental rates are dictated by market demand.
The current situation creates a perfect scenario for investment: properties at a historically low purchase price with little capital available locally for property investment and rental properties in high demand.
The current scenario locally is yielding an annual return on investment of 5/7%, with an average capital increase of 4% per annum.