So that's alright then

08/09/2009 - 16:34

This piece in yesterday's Guardian sounds more optimistic than it seems on the ground currently:



 i would say in terms of UK buyers the market has collapsed...if thats what you Italy i would say that the real problems have not started yet...  as regards most britains buying in their suggeted areas the article is based around ceratin agencies selling in those areas so its to be expected... with british buyers here not really being significant n terms of  foreign buyers in italy...population another myth... italian population is running pretty steady... not because of Italians but immigrants... their figures are correct about the native italian population ...but when you add in immigrants the birth rate for the first time in ages is increasing the population here...their prediction of surplus in the market is therefore well off ... immigrants will be in the hosuing market... and there is a significant shortage of homes in Italy at the right price...the britsih market in any case would not effect this in any significant way... they would not be buying in the areas destined for either surplus or shortage..... no italian wants to live where the vast majority of non italian buyers are looking...however they do have a good eye for local prices and will sell off inherited property in remote areas quite happily if the price is right... usually waiting for a sort of boom effect due to ryan air...hwoever relying on ryan air seems to me to be somewhat mistaken in these times .... Puglia if they or other carriers suddenly decide to make cuts will be a long drive even from Rome...reading a report the other day it seems that many british are trying to sell up in Tuscany... not all to return home to the UK...some just down sizing...  this might add to a drop in prices there... for foreigner type homes... but most of these will be overpriced anyway due to the amount put in and people trying to recoup costs... i reckon apart from the fact that the british buyer outside the euro zone and with fragile to say the least long term earning prospects has dried up or moved to two extremes... small well priced with not huge amounts to spend...or well prepared , reasonably wealthy with large budgets... the middle has dropped to a trickle there is really no signifacabnt difference if you are selling property here to italians... slightly slower ...but prices about usual...second homes... well most italian second homes are by the beach... and that market is a disaster... huge amounts for sale ... and not much happening...again italians will not drop prices... they just wait... .. and continue using them for holidays...if there is a collapse at all its in new builds... the companies going bust before they are built... having bought land at high prices and needing to build quicly and sell to cover the costs... theres your problem here... small company collapses...  but that will mean less new coastal apartments or out of town city complexes...  which in a sense will strenghten even further the value of existing property there you go ... is that alright then.... well aprt from my annoying mis typing and punctuation... 

In reply to by adriatica

Being a small property developer in London and in Tuscany, I must say that I agree with your analysis of Tuscany.  As I said in one of my previous post the market for large villas in my area has collapsed and old people in these villas needing to raise money on them are finding it difficult indeed to find buyers for their outright purchase.  We had a new bifamiliare to sell recently but decided to convert it into 2 flats for letting.  As an indication of hard times our buidler used to invoice us when he got round to it but now he does it monthly and waits for the cheque!  We target Italians and the demand in our part of Tuscany is for low cost properties for the young.  There is also a large demand for low cost rented proprties for Eastern Europeans.  The Tuscan Region is the first region to have approved the law on 20% extension allowance.  This was designed to kickstart the building industry.  As with any initiative the first people implementing it are always careful.  We want to take advantage of this law for one of our properties but the commune is hesitant, because they want to see what other large communes are doing.   We are now talking directly to the Region. There are bargains to be had in the large villas that are suitable for conversion into flats or if one is prepared to buy the freehold and leave the user rights to the owner until her death!

Yet again adriatica, a very good post. I would concur with pretty much everything you said. I don't think however, the underlying market for apartments in beach locations is as bad as you say. I think that the problem is more one of certain developments that were sold at prices that now look inflated. Not to Italians, who still look for their second home to be close to the sea.