Property in Italy

The northern city of Milan is widely regarded as the fashion capital of the world, and is also one of Western Europe’s main economic centres. Located in the Lombardy region, the city is the second largest in the country – after capital, Rome – and as such is a thriving and, in some respects, highly industrial area. It is Italy’s main hub for a number of industries including the manufacturing of garments, textiles, automobiles and heavy machinery. Milan is also one of Italy’s most multicultural cities, with more than 360,000 residents of the city said to hail from another country. Be warned, though, as you would expect from one of Europe’s major cities, the cost of living is higher in Milan than it is in most other areas of the country. After a few years of property price decline, June 2017 figures from the observatory of the Italian Tax Revenue Agency revealed that prices have been rising in the Lombard capital for almost three consecutive years.

If Milan is Italy’s major industrial hub, then its capital Rome is undoubtedly the country’s cultural centre. An extraordinarily attractive city, filled with fine architecture and remnants from the city’s proud past, coffee shops and an abundance of culture, Rome is an area that will instantly appeal to many people who are considering a move to Italy. While the city, as with any major capital, does have a sizable expat population, it can actually be quite a difficult city to settle in. The bureaucracy in Rome is complicated and finding a place to stay or getting your identity documents validated may become a lengthy, complex task. Likewise, while Rome arguably offers the highest amount of job opportunities outside of Milan, finding work can be difficult without good contacts and a decent grasp of the Italian language. The economy of Rome is largely dominated by the service sector, due to its very touristic nature and the lack of heavy industry in and around the city. Like Milan, Rome is one of Italy’s most expensive cities to live and buy a home in. For investors who can afford it, though, Rome also offers the best potential rental yields in the country.

Boasting a continental climate, with mild winters and warm summers, the central region of Umbria has long been a popular area of Italy for both tourists, foreign home buyers and expats alike. Often nicknamed the ‘green heart of Italy, Umbria is the country’s only region not to have a coastline or border with another country. Instead Umbria is famous for its rolling hills, medieval villages and fine cuisine. While the lifestyle on offer in the region is fairly affordable and property prices are, on the whole, low, the downside to this is that job opportunities are scarce. Most expats who move to the region end up working in a tourist related industry, with many starting their own businesses – bed and breakfast facilities are quite often owned by non-Italians here. Umbria’s main city, and capital, is historical Perugia, which has existed as a town for even longer than Rome. Assisi, Gubbio and Deruta are also popular large towns located in the region.

As previously mentioned, there is a distinct north-south divide in Italy, with the northern and central regions far more prosperous than the south. However, the region on Campania, located on the south-west coast has long been a draw for those home buyers and expats who do tend to look southwards – particularly, retirees looking for a destination boasting a warm climate. The average temperature in winter is around 10°C, while summers can reach 27°C. Campania is one of Italy’s main tourist destinations, home as it is to the Amalfi Coast, Mount Vesuvius and the island of Capri. This offers investors decent potential rental yields, especially as, on the whole, property is more affordable than it is in the north. The main city in the region is Naples, Italy’s third-largest city and one of the oldest continually inhabited cities in the world, while Sorrento is also popular as is the aforementioned Amalfi Coast. Although property prices in and around Naples can be fairly high (at least by Campania standards), they are still considerably lower than comparable properties in the more popular northern and central regions, and bargains can still be found throughout the region.

A hilly region which boasts one of the warmest climates in Italy, Le Marche has long been one of Italy’s most popular holiday destinations – especially the seaside resorts which dot the region’s 180 kilometre Adriatic coastline. Combining a hearty mixture of modern towns and cities with historical, medieval villages, the Marche region is already a fairly established expat location, especially for retirees who don’t necessarily need to work in order to support themselves financially. Tourism is the region’s main industry, especially in the more popular coastal resorts such as Pesaro and Senigallia, and there are numerous second homes here which are rented out to tourists during the summer peak season. The region’s capital is Ancona, which is one of the main ports on the Adriatic Sea known for sandy beaches, pebbled coves and limestone cliffs.

The large island located at the toe of Italy’s ‘boot’, Scilly is not necessarily the first region those planning on buying a property in Italy will consider. However, with a Mediterranean climate and a laid-back lifestyle on offer, it is an area that has long been extremely popular with tourists – and as is so often the case, where holidaymakers go, property investors will surely follow. In recent years, more and more foreigners have begun snapping up properties on the island, which are, for the most part, still fairly cheap, and this has already led to an increasing number of expats starting to settle there permanently. The most popular area for those eyeing a new life in Sicily is undoubtedly Palermo, the island’s capital, located in the north-west of the region, although there are a number of popular expat communities located in the eastern region and the inland area on the slopes of Mount Etna. The baroque towns of Modica, Ragusa and Noto have seen a large increase in overseas property investors in recent years, especially in the countryside, so expect to see a growing number of expats settling here in the near future, too.