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Florence’s property prices on the increase
8 May
According to new research, Tuscany in Italy has seen its prime property market regain stability after a 40% drop in peak to trough terms, with Florence and Lucca up 1%.

The Tuscany Insight report from international real estate firm Knight Frank revealed the region to be one of the most in-demand by overseas buyers in Italy. Additionally, nearly 100,000 foreign residents now live in Florence, Lucca and Pisa – with this figure only being expected to grow.

Of the three above cities, Florence saw the largest increase between 2012-2018, with overseas residents soaring by 38.5%, while Tuscany makes up 62% of Knight Frank’s applicant numbers for Italy.

According to the report, properties costing over €10 million were being looked into far more due to a newly introduced €100,000 flat tax, which can be benefitted from those who take up Italian residency. Eligible family members would also benefit from a flat tax of €25,000. Buyers often originated from the Middle East, the United States, the UK, Benelux countries and India.

Amy Redfern-Woods of Knight Frank’s Italian desk, said: “International enquiries rather than domestic demand is behind the recent resurgence. Buyers pay little attention to the political and economic landscape focussing instead on the unrivalled lifestyle on offer. For Italy, banking and governmental crises are nothing new.

“We have seen a detachment of the super-prime market over the last year with enquiries for properties €10 million or above strengthening. Some of these high net worth individuals already own an Italian home and following the advice of their family office, are keen to expand their footprint in the country, often seeking multiple homes across a range of locations, city, coastal or in the Alps.”

Redfern-Woods added: “The one trend that stands out this year is that our applicants are time poor and it influences their search in several ways. Firstly, most want a renovated project, not one that requires any work. Secondly, buyers want to be within an hour of an airport enabling them to make use of the property four or five times a year for mini-breaks and minimise travel, the days of visiting for a whole month in the summer are largely gone.”

Research revealed that although the majority of overseas buyers are seeking to purchase a holiday home, more individuals are expressing interest in a permanent residence.

Additionally, as she goes on to say, properties that do not require much maintenance are preferred as many buyers choose to rent out their home to cover costs. Since Lucca boasts prices that are 20% to 25% lower than in Florence, the city is currently a popular choice.

“Lucca is also easily accessible via Pisa Airport, it is located within a 30-minute drive of the Mediterranean,” Redfern-Woods concluded.

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