Property prices in Northern Italy’s coastal resorts went down by an average 3.3%
Northern Italy’s seaside resorts proved more resilient than most to the credit crunch. This is the picture that emerges from a recent study by Italian estate agent conglomerate Tecnocasa.
The group analysed market trends for second homes in coastal locations in the North of Italy during the second half of 2008, and discovered that prices went down by a modest 3.3%. So while the northern coastal market did not escape the downturn unscathed, it certainly performed slightly better than the rest of the country.
Actual price drops, however, varied enormously from place to place. In Tuscany, which the Tecnocasa report includes in the north of Italy, the average decline was 6%—nearly twice the northern Italian average. Values plummeted in the Livorno province (down 14.8%), whereas the Grosseto province only saw a negligible 0.7% reduction. In particular, demand remained good and prices held firm in the seaside town of Follonica, where a second home now costs an average €4,000 per square metre.
Neighbouring Emilia Romagna performed just a little bit better than the national average, with a regional drop of 3.1%. Even here, though, there are marked differences from province to province. The area around Rimini—usually a popular summer destination—suffered slightly more from the downturn, with reductions to the tune of 3.7%. Among the worst hit resorts was Cattolica where prices went down 9.4%. The first months of 2009 saw a revival in demand for the Romagna town, though prices are likely to stay down because many vendors have revised their expectations downwards. That said, period homes in Cattolica’s centre can cost €1m or above.
By contrast, demand remains buoyant in Cervia and Milano Marittima, the two most sought-after resorts of the Ravenna province. Many of the buyers are investors looking for a safer alternative to the stock market, though their budgets are smaller than in the past. Prices are suitably steep, particularly in Milano Marittima, where they reach €6,000 per square metre for resales and up to €10,000 for prestige homes by the sea.
Even higher values have been recorded in Liguria, in the town of Varazze, in the Savona province, where homes can cost up to €12,000 per square metre. The market here is stable, though buyers, who chiefly come from nearby Piedmont and Lombardy, have become more discerning. They are mostly looking for properties with sea views, and proximity to the beach and high standards of comforts.
Looking at the whole of Liguria, the market has performed along the national average, with a regional decline of 3.4%. Troughs were recorded in Lerici, in the La Spezia province, where values went down by 9.1% due to a mid-market contraction and the reduction of American buyers’ numbers; San Bartolomeo al Mare, in the Imperia province, down 8.6% because prospective purchasers’ budgets have tightened up; and Chiavari, in the Genoa province, down 8.4%.
The Genoese resort, however, saw a two-tier market, with steady values for homes situated by the waterside or in the city centre. These properties can cost between €6,000 and €8,000 per square metre. The market is even more exclusive for turn of the century villas in the viale delle Palme area, which, however, are in very short supply and often sold confidentially.
At the opposite end of the market performance ladder, prices remained stable in Loano, near Savona, even though sale volumes contracted. Interest here is particularly strong for both inland properties and premium 19th century villas by the sea. The latter cost between €6,000 and €10,000 per square metre. Also steady is the market in Diano Marina, where an increase in supply was matched by a rise in demand, particularly by investors, and in Arma di Taggia, where, however, vendors and buyers expectations differ sharply.
Perhaps surprisingly, though, northern Italy’s best performing coastline is Friuli Venezia Giulia’s. The north eastern region may be less known among foreign buyers, but it has an active local market. Prices in Friuli Venezia Giulia’s top resort, Lignano Sabbiadoro, went down by just 1.9%. The town took advantage of interest from Lombardy, Piedmont and other northern Italian buyers looking for a more cost-effective alternative to Liguria. Interestingly, demand was strongest for budget homes priced up to €130,000 and for premium properties priced from €400,000, whereas the mid-market was the slowest.
