How Covid-19 will impact on Italian Real Estate Market?
As the virus continues to spread from country to country, and obliges people to stay home, we do expect to have an impact on real-estate market in Italy, same as in other Countries in Europe.
This actual situation is causing major uncertainty in the global economy, and the impact on property performance will depend deeply on the duration and spread of the virus, which is presently unknown.
With Coronavirus pandemic and uncertainty in the market, both buyers and sellers need to understand whether now is a good time to buy or sell.
The impact will be possibly different depending on the property and reason for a purchase.
Given that tourism is obviously stuck and not many people are organizing their holiday within a short term, it is fair to think that those who wish to purchase a property as an investment are stopping from buying it.
Buyers may be deciding that viewing houses could expose them to the Coronavirus, and may put on hold their searches.
Meanwhile, sellers might believe that we are going toward a recession, reason why they might put their houses on the market in anticipation of falling prices.
The laws of the free market teach us that when the demand decreases and the offer increases, the price goes down. This will make it easier for buyers to get into their dream home.
In such situation it might be convenient to invest on a property now, but this also depends on the aim that each investor wishes to achieve:
The most influential newspapers in Italy say that, compared to 2019, property sales are decreasing in 2020. In particular by referring to those properties, which are sold at a low price.
This might cause a price reduction especially for those properties which price is lower than 100.000/150.000 euros.
Our conclusion is that this is a quite “fine moment” for investing in Italian property market, however if the aim is to achieve a profitable investment through the short term rental, and therefore for temporary and tourist purposes, you need to take into consideration the high decrease of Italian tourism during this year 2020. The reason is obviously because the coronavirus has dealt a significant blow to vacationers.