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The real estate market in Italy
has been in a period of steady
growth since 2000, registering
positive price movements in
both residential and commercial property. It would be incorrect though to
say, that the Italian market is experiencing
a bubble, as the growth of the
past few years and the percentage of
total assets invested by householders
and by companies in the real estate
sector are similar to those of other
developed countries.
Compared to other forms of investment,
real estate in Italy is still an
attractive option to get good returns
on, mostly due to:
- Favourable interest rates
- The end of price stagnation experienced
by the real estate market in
the 90s
- Tax incentives for property renovation
(in force now for more than four
years)
- Recent privatisation processes
A further increase in the real estate
prices is expected in 2005. Also by the
end of 2005, the real estate assets in
Italy will represent 6.1 per cent of the
European total, overtaking France and
catching up with the UK.
Moreover, the Italian market has still
got a huge potential to grow. The real
estate assets owned by insurance companies,
banks, listed companies and
welfare agencies (excluding the ones
belonging to the State and the Church)
are worth € 70 billion. Due to the very
diversified, region oriented structure of
the Italian economy, it is very important
to focus our analysis on one specific
area. On this occasion, we would
like to introduce to you, the real estate
investment opportunities in the
Piedmont region.
Buying a property in Piedmont is
both a dream and a reality. It is a
dream because the performance of the
regional and city property markets
has been rising now for some time
and ensures returns that make investing
in the region highly attractive. It
is a reality, because the interest foreign
investors show in the
Piedmontese (and Italian as a whole)
property market seems to be growing
constantly.
A number of factors contribute to this
positive trend. The growing professionalism
and consequent transparency of
the market have certainly had a considerable
weight and will have so, even
more in the future. The recent disposal
of considerable property portfolios, by
both the private and public sectors have
given a boost to the market, which was
already sparkling, meeting the interest
of both private individuals and institutional
investors. In addition, the growing
number of financial instruments
linked to the sector has helped to draw
increasing attention to property investments
as an alternative to traditional
financial investments.
In this positive panorama, which, it is
worth remembering, has benefited from
the reduction in interest rates (and also
stock market volatility), Turin and
Piedmont have a number of trump
cards to play now and in the future.
In 2006 the 20th Olympic Winter
Games will be held in Turin.This event
has attracted considerable investment
in facilities and infrastructure to the
region. For the road and rail networks
alone, work is planned in Piedmont up
to 2013 for € 30 billion.Work is currently
underway on the high-speed link
with Milan, which will be completed by
2008, while in the west, the link to
Lyon will be finished by 2018. The
impact of these works on the region
will be immense in terms of the economic
spin-off effect, which will also
influence the property market.
For some years now, Turin has been
going through a process of profound
urban transformation, characterised by
the conversion of disused industrial
areas. The city itself, once the heart of
industrialisation, is being converted
with the profound diversification of its
economic structure, including the regeneration
of former industrial areas, now
being occupied by new cultural and
service centres and high-quality housing. The urban sections of the railway
that divided the city into two parts
(from the north-east to the south-west)
until a few years ago, will be put completely
under ground and the first metro
line is well on its way to completion.
Turin is certainly blossoming, which
is shown in the 2004 Rapporto
Congiunturale of the construction market
by Cresme Research Institute, highlighting
growth for the tenth year running. Public works and new housing
constructions have respectively seen
growth in 2004 of 4.1per cent and 3.5
per cent respectively.
Mountain holiday homes (which are
of great importance in Piedmont) have
showed an increase in value of 17 per
cent over the last six months. The
tourist resorts in upper Valle di Susa
Real Estate
Market in Italy
and Piedmont
Leonardo Simonelli, President, Italian Chamber of Commerce and Industry in the
UK and Federico Zardi, Architect, Real Estate, Invest in Turin and Piedmont
Country Focus 151
Italy
that will be hosting events during the
forthcoming 2006 Olympic Games
have benefited the most, property
prices in Sestriere have risen over 37
per cent and in Bardonecchia over 20
per cent. According to the Istituto di
Ricerca Scenari Immobiliari, the second
home market in the mountains is
livelier than in the city, with the only
damper being the shortage of property
on offer.
To sum up, residential sector drives
the property market in the Piedmont
region. In Turin, this sector is particularly
lively and shows the benefits of
the major urban changes linked to the
new cross-rail system, the construction
of the first line of the new metro and
the projects linked to the Winter 2006
Olympics.
Leonardo Simonelli, Phd, is the
President of the Italian Chamber of
Commerce and Industry in the UK.
Federico Zardi is an architect working
in the Real Estate section of Invest
in Turin and Piedmont.
One of the functions of the Italian
Chamber of Commerce and Industry in
the UK is representing Invest in Turin
and Piedmont (ITP) in Britain. ITP is
the first and largest Italian regional
agency dedicated to attracting foreign
investment. Its stakeholders are the
main public institutions, chambers of
commerce and associations of private
companies. It responds to inward
investments enquiries from all over the
world and supports foreign companies
operating within the region. From finding
the most suitable locations to
sourcing advice on financial incentives
for your investment, the Italian
Chamber of Commerce’s support will
continue as you expand and develop,
once your operations are established.
For more information please visit:
www.italchamind.co.uk or
www.itp-agency.org
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