Investment properties in Italy
The market for tourist properties in Italy is growing
• Trends in tourism in Italy
According to the provisional data of ISTAT for 2022*, the year-on-year increase in tourist presence in Italy was 39.3% compared to 2021; (the presence of foreign tourists increased by 84.8% while domestic tourists by 12.9%).
(*Italian Statistical Office - https://www.istat.it/it/archivio/turismo)
The first provisional data for 2023 (again according to ISTAT) seem to confirm the definitive recovery of the sector (45.5% increase compared to the same two months of 2022), with strong growth in both foreign (+ 70.5%) and domestic tourists (+ 28.8%), who even exceed pre-pandemic levels.
The fastest growing category in Italy was luxury accommodation, such as villas and castles, with an increase of 12% compared to 2019. There were more than 3 million luxury tourists from abroad in 2022, with an average expenditure of EUR 4 000 per person.
• Profitability of tourist rentals
According to a report by Centro Studi FIAIP entitled ‘Real estate market trends for tourism in Italy’ of June 2023, tourist rentals in Italy offered excellent profitability in 2022.
The average gross revenue from this type of lease was between 6% and 8% in 2022, while for the summer season 2023 the same revenue is estimated at between 6% and 9% *.
(*https://issuu.com/romafiaip/docs/fiaip_monitora_turistico_estate_2023_-_14062023)
• The tourism property market
The high profitability led to a significant increase in short-term tourism rentals (+10% compared to 2021) and, in particular, a 24% increase (compared to 2021) in the property transfers made, which are not used for permanent owner-occupied housing (around 278.000 transfers), while the projections for 2023 indicate a further 10% increase.
It is no accident, therefore, that in 2022 Italy experienced a real expansion of investment in tourist properties.
While at the global level investment in hotel properties declined slightly in 2022 (-1.5% compared to 2021) and remained broadly stable at the European level, Italy closed the year 2022 with a 40% increase in total turnover of EUR 3.5 billion, with 2024 expected to be compensated for by the level recorded in 2019.
• Tuscany
The year 2022 was the „year of redemption“ for Tuscany, with a 36.6% increase in attendance compared to 2021 and an approach to pre-pandemic levels *.
(* IRPET Tuscany Tourism Report 21 June 2023 - http: / / www.irpet.it / archives / 66072)
In a panorama of real estate investment in Italy, the Tuscany region appears to be one of the most sought-after destinations for 2023.
The demand for tourist facilities such as agri-tourism facilities, agri-resorts, villas, prestigious apartments, historical estates suitable for conversion into luxury hotels and boutique hotels is constantly increasing.
As regards the luxury tourist real estate market, Tuscany is the first country in Italy to attract 14% of demand, followed by Apulia and Lombardia, both with 12%, followed by Campania with 10% and Sicily with 9%.
In the luxury hotels sector in particular, according to Il Sole 24 Ore*, Italy’s most important economic journal:
‘ Tuscany has confirmed that it is a recreational destination capable of attracting foreign capital and large international chains. A significant contribution is made by Florence, where a number of projects are under way ... for more than 500 million Euro investments in the last three years’.
(* https: / / www.ilsole24ore.com / art / investimenti-500-mio-hotel-lusso-Firenze-AEahbNWC)
The required prices of these luxury properties for sale in Chianti vary according to parameters such as location, size of buildings and land and state of maintenance. Prices of properties with smaller vineyards and land start at around EUR 1.5 million, with more structured properties with their own cellars and quality vineyards running above EUR 20 million.
• Offers
Below is an offer of properties which have already been or will be reconstructed and which are particularly suitable for use in tourism:
1. Agroresort in Mugello – 35 km from Florence - Agriresort Mugello
2. Hotel at San Gimignano - Hotel San Gimignano
3. Villa in the countryside suitable for Agritourism Vinci - Villa Vinci
4. Historical and agricultural farmstead with project for reconstruction as boutique hotel nearby Florence - Farmstead
5. Villa near Sovicille (Siena) after reconstruction - Villa Sovicille
6. Boutique Hotel in Montalcino (town of Brunello) - (advert under construction)