Having a house by the sea is still a dream for Italians and expats alike, both as a holiday home for personal use and for investment purposes. Today, Tecnocasa helps idealista/news give a snapshot of the real estate market for seafront homes in northern Italy.
The three most popular places to buy holiday homes by the sea
According to the Tecnocasa Studies Office, 6.2% of potential property buyers were in the market for a holiday home, with the share of foreign clients having increased from 7.9% in 2017 to 9.3% in 2018. They are particularly interested in villages and typical Italian houses, or by detached houses because for them, in particular, peace and privacy are important. Italian buyers, meanwhile, are more interested in small three- and two-roomed apartments close to the beach and with services nearby, an increasingly important factor since people are tending to live in these houses for more time, beyond the classic holiday period.
The most popular types of holiday homes are three-room apartments (34.8%), followed by two-room apartments (26.3%) and finally detached houses (24.9%). Compared to a year ago there was a slight increase in apartment sales, most likely linked to the increase in buy-to-lets for investment purposes, powered by the influx of tourists to Italy in recent years.
Mortgages to buy holiday homes in northern Italy
One new trend that has emerged in recent months is a greater use of mortgages for the purchase of holiday homes, reserving liquidity for any unforeseen events. In the second half of 2018, the real estate values of seaside resorts in Italy saw a decline in prices of 0.9%. Apulia ended the year with stable values, and there were price reductions in the resorts of Sardinia and Campania (-0.3%), Calabria (-0.4%), Marche and Sicily (-0.6%). Emilia-Romagna closed the year with a 0.8% drop in prices. Among the few places that reported a recovery in values were Jesolo, San Teodoro and Ostuni.
Here’s a closer look at the real estate trends for 2019 in the main seaside resorts in northern Italy:
1. Liguria
Real estate prices for holiday homes in Liguria recorded a contraction of 1.1%, while property values in the provinces of Imperia and Savona were stable. Interest in the coast of Imperia is growing thanks to the bike path that is being built there. Tourist resorts in the province of Genoa recorded a contraction in values of 2.9%.
In Noli, Spotorno, Bergeggi and Vado Ligure, real estate demand is lively and increasing, with average investments of around 200-250 thousand euros. Property prices in Varazze were stable in the second half of 2018, even while values fell for older types of properties that have never undergone restructuring or renovation works. Often, not having a lift was a disadvantage for buildings in the historic town centre, but which benefitted from being on the seafront. If renovated with quality finishes, these properties could reach highs of 5,000-6,000 euros per square metre (465-557 euros per square foot). For homes not by the seafront, values fall to 3,000-4,000 euros/m2 (279-372 euros/sq ft).
In Diano Marina, the real estate values are stable. Demand is lively, fuelled by both Italian buyers and expats attracted by both the pleasant climate and the cycle path. In fact, bikers and campers are showing a lot of interest in the locality of Imperia. Among these buyers, there are also people living in Northern Europe and French people who, approaching retirement age, buy property here and like to spend the winters. Particularly sought after is the area within a kilometre from the sea, where the average prices are 4,000 euros/m2 (372 euros/sq ft), with maximums of 5,000 euros/m2 (465 euros/sq ft) on the seafront.
In the second half of 2018, the real estate market in Bordighera recorded stable prices. The Italians who search for holiday homes here are mainly from Piedmont and Lombardy and are looking for three-room apartments and flats located as close to the sea as possible, with sea views and which cost no more than 250 thousand euros.
House prices of Chiavari are decreasing (-1.2%), with Italian buyers investing capital from 100-120 thousand euros to buy small homes of 30-50 m2 (323-538 sq ft). The return of holiday home buyers was determined mainly by the fall in prices: in the city, in fact, there are many empty houses as a result of a generational change. The areas most coveted by those looking for a holiday home are Corso Italia, Corso Valparaiso and Corso Genova where, seafront flats in apartment blocks built in the '60s and '70s can reach up to 5,000 euros/m2 (557 euros/sq ft).
There was a slight drop in prices in Genoa, especially in the city centre, but prices remained fairly stable in the old town and around the promenade. The reason is to be found in the excess of supply on the market: there are many second homes offered for sale following a generational shift that has affected the city. Most of these are condos dating back to the '60s and '70s which are in need of renovation. The demand for holiday homes is always present and centred mainly on small, two- and three-room flats costing a maximum of 200 thousand euros.
2. Emilia-Romagna
Prices of homes along the Riviera Romagnola are down 0.8%. Prices in the province of Forlì are down by 1.5% and those in the province of Rimini by 1.6%. In the second half of 2018 the real estate values of Cesenatico were down by 2.1%. In the centre and in the area of Porto Canale, the biggest buyers of holiday homes come from the provinces of Bologna and Modena. Prices are stable in Gatteo Mare, Villamarina and Valverde (the latter two in the territory of Cesenatico).
Valverde is a tourist resort and consequently comes alive mainly in the summer months. The most popular homes are those located on viale Carducci (the avenue that connects all these areas) and those on the seafront that have average prices of 2,500-3,000 euros/m2 (232-279 euros/sq ft). The further away from the seafront you get, the cheaper the property, with prices estimated on average to be 2,300-2,500 euros/m2 (214-232 euros/sq ft). The real estate market is similar in Villamarina and Gatteo Mare. The latter is lively all year round and is one of the reasons why it is very popular with families. This explains the slightly higher prices than in Valverde and Villamarina. In fact, a house facing the sea can reach up to 3,000-3,300 euros/m2 (279-307 euros/sq ft).
The market for holiday homes in Pinarella and Tagliata has been characterised by requests from buyers living in Emilia, Romagna and, in part, Lombardy. They look for apartments in good condition that don’t need renovation work. The town has seen numerous interventions for the improvement of urban planning, from the cycle path that connects Cesenatico to Cervia and will then also connect to Milano Marittima to the recovery of the historic Magazzino del Sale (Salt Warehouse), where a new cultural centre has been built with restaurants and museums dedicated to salt.
3. Veneto
In Veneto, tourist resorts recorded a 1.3% decline in real estate values. Prices in the centre of Caorle are stable but decreasing in the outskirts: new builds, mostly intended for the residential market, are tempering the prices of existing, used property. Demand is mainly focussed on properties with two bedrooms, possibly with a balcony and parking space and buyers generally have a budget of between 130 and 200 thousand euros. Also important is having independent heating since people generally live in these houses even in winter.
The real estate market in Jesolo - Lido indicates a stability of values. The tourist demand comes from residents in the provinces of Treviso, Venice, Vicenza, Verona and Padua looking for apartments of 50-60 m2 (538-646 sq ft) in which to invest no more than 150-250 thousand euros.
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