Italy holiday homes: where Italians and foreigners choose

Italy's tourism real estate market holds steady in 2024. Despite the impact of geopolitical and economic factors, which have influenced foreign buyers' choices and altered purchasing dynamics, the demand for holiday homes remains strong in Italy, driven by a variety of demographic preferences and the importance of infrastructure and connectivity. Fabiana Megliola, Head of the Research Department at the Tecnocasa Group, has outlined the scenario concerning the holiday home market in Italy.

Trends in property values in lakeside locations

The lakeside property market in Italy has seen a slight decline with an overall decrease of 0.3% in property values. Specifically, Lake Garda experienced a minor decrease of 0.4%. In contrast, Lake Como saw a growth of 1.9%, with the Como side performing notably well (+5.5%) compared to the Lecco side, which registered a drop of 0.4%. Lake Iseo also saw an increase, albeit modest, of 0.6%. However, the lakeside locations in Lazio showed signs of difficulty: Lake Bracciano saw a decline of 4.2%, while Lake Bolsena recorded a decrease of 5.7%.

Property prices in Italian seaside locations

Seaside locations closed the second half of 2023 with an average increase of 0.5%. Among the Adriatic regions, Abruzzo and Molise reported increases of 1.7% and 6.9%, respectively. Veneto and Sardinia also showed positive growth with increases of 2.4% and 2.1%. Calabria registered an increase of 1.7%. However, some regions saw a slight contraction in prices: Puglia (-2.0%) and Sicily (-1.2%).

Buying a second home in Italy: influencing factors

After the surge in property transactions post-pandemic, the holiday home market appeared to reach a level of normalisation in 2023, with a consolidation of transactions compared to 2022. Holiday home purchases accounted for 7.1% of the total transactions carried out by Tecnocasa Group agencies.

A significant element has been the increase in foreign buyers, which in 2023 reached 13.5% compared to 10.7% in 2019. However, the ongoing conflict and the slowdown in the German economy have negatively impacted purchases by German citizens, who have traditionally been very active in the Lake Garda area. Conversely, less expensive tourist locations like Lake Iseo have seen an increase in purchases.

The conflict in Ukraine: consequences for the tourism market

The conflict in Ukraine has increased the demand for holiday homes from residents in Poland, who view Italy as a safe haven. Locations such as Scalea, Bordighera, Caorle, Sant’Antioco, Badesi, Taormina, Terrasini, Castellammare del Golfo, and Alcamo have particularly attracted the interest of these buyers.

Connectivity between major cities and tourist locations has had a significant impact on the market. Accessibility via the railway network has favoured the increase in purchases in the Adriatic regions, rising from 9.6% in 2019 to 11.9% in 2023. Additionally, cycle paths, such as those around Lake Garda and along the Ligurian coast, have played an important role in making these locations more attractive.

Who buys holiday homes in Italy?

The three-room apartment remains the most requested type, representing 32.5% of purchases, followed by independent and semi-independent solutions (28.2%) and two-room apartments (24.4%). There has been a slight increase in transactions of three-room apartments compared to the previous year and a decrease in independent solutions.

Holiday home buyers are predominantly aged between 45 and 64, with an increase in the average age compared to 2022. There is also a growing percentage of young buyers under 34 and those over 64. The market has also seen an increase in single buyers, who rose to 18.6% in 2023.

Finally, the data on purchasing methods is significant: 87.9% of transactions were completed without resorting to mortgages, the highest proportion recorded in recent years, with only 12.1% of purchases supported by a mortgage.

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