Italy is fairing the credit crunch better than many other developed nations.   It is envisaged that the market will pick up,  marginally, in 2009.   Average prices across the country have come down, if only by a modest 5%, as more sellers adapt their expectations to the current economic outlook.   Estate agents are also adjusting their valuations, so that the prices of homes now coming up for sale reflect the new market conditions

Records show that in Tuscany, prices increased marginally with a small decline in sales.  Sales will drop by an estimated 1.4% by the end of 2008, while house prices will go up by 2.2%.   This statistic indicates the first time Tuscan residential turnover fails to increase in seven years—as it has increased annually since 2001.  

Sales in  Tuscany declined in the provincial capitals (-4.8%) whereas, outside them, they went up by about 1%. Sale times became longer (from six to 12 months for any property) and the margins for negotiation over the asking price are wider. Prices slowed down more markedly for some specific housing categories (homes in urban outskirts or semi-central areas, and in some provinces) than others—residential properties in the city centres of Florence, Pisa, Prato and Siena all recorded increases of 4.3% or more.

In line with the rest of Italy, prime properties in sought-after cities also saw a healthier price increase than other market segments—they went up by an average 3.5%.

These topline figures, however, chiefly refer to the town and city markets—the provincial capitals alone account for 39% of all residential sales in 2008. As the Scenari Immobiliari report states, while Tuscany has about 1800 villages with unique architecture set against an exceptional landscape, these places depend from the bigger towns for many functions. “As a result, towns have a great power of attraction, which keeps growing—60% of Tuscany’s inhabitants live in the 38 most populated comuni, which count more than 28,000 people.

Although the town and country markets are obviously interlinked, they do have some differences.   Foreign preferences tends to be completely different to Italian preferences.   Prospective Italian buyers were asked what their ideal home is like. The vast majority would like a city flat, preferably with a terrace, whereas the property of choice among foreign buyers—a casale in the countryside—is only popular with ¼ of the Italians.

Source:  Italymag.co.uk