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In Europe, home sales are falling

Italy, however, is attracting many digital nomads and deals are growing there

Nov 25, 2024 09:21 54

In Europe, home sales are falling  - 1

Demand to buy homes in Italy is growing. Buyers - including foreign ones - not only invest in rental properties, but also buy apartments for their own use, according to the data of the consulting company Knight Frank.

The increased interest is due not only to the development of tourism and favorable tax policies, but also to the increase in the number of digital nomads after the pandemic - although Italy is not in the top 15 of the best countries for nomads.

With the introduction of new conditions for digital nomads in the spring of the current year, there is an increase in the demand for real estate, especially in Milan and Rome.

At the moment, the prices of luxury homes in the country remain stable. Sales in the sector fell after the European Central Bank (ECB) began raising interest rates in 2022. Now they are declining, which is driving the market recovery. Supply, according to analysts, will remain limited. The reason is the high cost of construction.

In 2023 prices in the premium segment increased by an average of 4%. They are 16% higher than the pre-pandemic 2019. Lake Como and Florence lead the way in house price growth, with Lucca and Milan topping the list as they have for the previous five years.

Rich foreigners are migrating, especially to Italy, in the conditions of a tense geopolitical situation and economic uncertainty. In the next five years, the number of people in the country with a net worth of 30 million is expected. USD or more to increase by 2977 people (+19%). According to experts from Knight Frank, this will allow Italy to maintain its advantage over Switzerland.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE