Hard hit during the global financial crisis, Italy’s economy is emerging from a period of financial and political challenges. The country’s property markets suffered and residential prices fell by up to 30%. However, after several difficult years, stability is now in sight. Transaction volumes have risen 33% from their 2013 low, while prices are beginning to level out.

In the prime sector, there are high levels of stock. This makes it a buyer’s market and ‘best-in-class’ properties are in demand.

Italy’s status as a top visitor destination, coupled with the high-quality life it offers, will underpin its enduring appeal for generations to come.

^{▼ St Peter’s Basilica, Rome}

Summary

■ Transactions on the rise

Numbers of transactions grew by 18% in 2016, but remain 39% below their 2006 peak

■ A buyer’s market

Prime prices are 30% below their 2008 high. Sensibly priced properties are trading

■ International buyers

The international buyer base is broadening – Americans are a growing force

■ Search for income

Growth in the city-break market supports demand for short-term rentals in Italy’s major urban centres

■ Pricing outlook

Prices may stabilise next year as transaction levels rise