Unlike Tuscany's conventional residential housing market, the prime luxury sector, according to new research from international property consultancy Knight Frank, is on firmer ground. qatar real estate
Prices dropped 40% from peak to trough over the last decade, but they have now stabilized, with Florence and Lucca both seeing 1% growth in 2018. According to the most recent results, the region accounted for 62 percent of our Italian applicant numbers in the year ending in March 2019.
The recent revival is due to international inquiries rather than domestic demand. Buyers are more concerned with the unrivaled lifestyle on offer than with the political and economic environment.
Banking and government problems are nothing new in Italy. The €100,000 flat tax, which was implemented in 2017, is a major attraction for the rich. In 2018, 150 UHNWIs applied for citizenship via the program, according to Fabrizio Pagani, Minister of Economy and Finance.
Individuals who take up Italian citizenship benefit from a €100,000 flat tax on all foreign profits under the initiative. A flat tax of €25,000 is also available to qualifying family members.
In line with this, we've seen a detachment of the super-prime market in the last year, with inquiries for properties worth €10 million or more increasing. Following the advice of their family office, some of these high net worth individuals already own an Italian home and are eager to expand their footprint in the region, often pursuing multiple homes in a variety of locations - area, coastal, or in the Alps.
In 2018, the most successful buyers in Tuscany were from the Middle East, the United States, the United Kingdom, the Benelux, and India. While the majority are searching for a vacation home, a growing number are looking for a permanent residence.
The number of foreign residents in Tuscan cities is increasing. According to the Italian Statistics Office (Istat), almost 100,000 international nationals now live in Florence, Lucca, and Pisa.
Between 2012 and 2018, the number of international residents in Florence increased by 38.5 percent, the most of the three cities.
One thing that stands out this year is that our applicants are time-strapped, which affects their search in a variety of ways. To begin with, most people want a renovated project rather than one that needs any work.
Second, buyers want to be within an hour of an airport, allowing them to visit the property four or five times a year for mini-breaks and that travel time - the days of staying for a month in the summer are mostly gone. Finally, most people intend to live in their home for at least five years, with the intention of renting it out to cover expenses, so a low-maintenance property is preferred.
Buyers are also looking for good deals, and with costs 20 percent to 25% lower than in Florence, Lucca is squarely in the spotlight. Lucca is also easily accessible from Pisa Airport; it is just a 30-minute drive from the Mediterranean and is home to a world-famous Summer Music Festival.
The following are some of the highlights of the Tuscany luxury housing market:
The €100,000 flat tax is a major draw for the rich, drawing 150 UHNWIs to the country in 2018.
The train line from Florence to Vareggio, which passes via Lucca, is being upgraded. Lucca will be within 45 minutes of Florence by train once the project is completed in 2020.
A new 5.3-kilometer tram line now connects Florence's city center to the airport. Travel times on the new T2 line have been reduced to 21 minutes, making the city even more open.
Following a 40% drop in peak-to-trough terms, prime prices in Tuscany have stabilized. In 2018, both Florence and Lucca saw a 1% increase in their prices.
Tuscany accounts for 62 percent of Knight Frank's Italian applicant numbers.
Due to the new flat tax, demand for properties worth more than €10 million has increased, with many wealthy families buying several properties in Italy.
Buyers from the Middle East, the United States, the United Kingdom, Benelux, and India are among the most active.
The number of foreign residents in Tuscan cities is increasing. Florence, Lucca, and Pisa now have over 100,000 international citizens.
Between 2012 and 2018, the number of international residents in Florence increased by 38.5 percent, the most of the three cities.