Milan continues to outpace its Italian neighbors in home prices and sales volume, while the smaller areas in its orbit remain quiet and affordable.
With relatively few transactions and tight restrictions on new construction, the island of Capri has been largely resistant to market turmoil.
In the past decade, home prices in Abruzzo — which includes the provinces of Chieti, Pescara, Teramo and L’Aquila — have dropped around 30 to 40 percent, although they now seem to have bottomed out, Ms. Nicholas said: “We think they could start to rise again soon. Last year was our best year in 10 years, and this year is following a similar trend.”
The Italian Riviera — a crescent-shaped coastal area bordering France, within the larger region of Liguria — has two luxury markets, agents said: the eastern Riviera di Levante, which includes the tourist hot spots of Portofino, Santa Margherita and Cinque Terre; and the western Riviera di Ponente, which stretches from Genoa to France. The two areas are similar, agents said, but the east is more hyped, and consequently more expensive.
The global real estate crisis of 2008 affected the housing market throughout Italy, with prices falling by 20 to 30 percent, and Piedmont followed the national trend, brokers said. But after several years of decreasing prices, Piedmont’s housing market has begun to stabilize in the past 12 to 18 months, said Eli Anne Langen, owner of the brokerage Case in Piemonte. The region’s 2014 designation as a Unesco World Heritage site contributed to that recovery, creating “a noted increase in tourism and investor interest,” Ms. Langen said.
Palermo’s property market has been slow to rebound from Italy’s economic struggles. Prices are down about 20 percent from 2012, said Diletta Giorgolo Spinola, the head of sales in Southern Italy for Sotheby’s International Realty.
While prices in most of Italy’s prime second-home markets declined last year — on average, about 5.5 percent — the Lake Como area was an exception, according to a recent report from Knight Frank. Prices around the lake rose by 1.2 percent, the report said, reflecting the area’s popularity both in Italy and abroad, and its proximity to the Milan airport and the Swiss border.
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
Italy’s real estate market started to pick up in 2014, said Maurizio Pezzetta, the owner and broker of La Commerciale, a luxury real estate agency based in Rome and the exclusive Christie’s affiliate in Rome and Lazio. In 2016, there were around 500,000 transactions nationwide, up from about 400,000 in 2013, Mr. Pezzetta said, although this is still far below the pre-recession peak of around 845,000 sales in 2008.
Milan’s housing market is undergoing a slow recovery in the aftermath of Italy’s prolonged recession and amid continued concerns about the stability of its debt-burdened banking system. The housing market bottomed out in 2012-13, according to a recent report on the luxury market from Tirelli & Partners, a real estate company. While demand had shifted markedly to rentals, the report said, sales have been climbing since 2014.
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