Real estate investments in Rome: is it safe to invest in properties?
What to invest in Rome property?
Rome, along with Paris, London, New York and Tokyo, is one of the most glamorous and fascinating cities in the world. Investing in Rome is definitely a good choice, both if you want to enjoy the Roman atmosphere or if you just want to put money in the properties.
In the last few years, the Roman real estate market has seen a large increase in buying and selling activities, and the value of the brick has not stopped increasing. For example, from 2000 to the present, the average value has increased by more than 200 percent. It is a long known fact that the ownership of a house in Rome is having the greatest stock ever.
Can foreigners buy property in Rome?
Technically, there are some constraints on who can and can not buy property in Rome and Italy, but it is generally seen as a “no constraints” location.
That’s because, outside of EU citizens, you must have a valid residence permit if you want to purchase a residence in Italy. Unless, of course, you live in a land with reciprocity. For example, any US citizen can purchase property in Italy since any Italian can purchase property in the USA.
You do want to make sure that if you submit money from your home country to make the order, it is legally registered. This is to ensure that whatever proceeds come from a future resale can be repatriated.
Rome Real Estate Market
The present state of the real estate market in Rome remains on a downward slope, arising from a distant housing bubble, partially due to uncertainty related to the launch of the euro in 2001. While Rome’s overvalued real estate market has not crashed, it has seen a significant but steady slowdown. Real estate in Italy is a typical safe haven, and the double dip crisis has driven people to invest in properties, preventing a sudden collapse like we saw in the States. I should say that we might now see a bottom line in the real estate industry, as recent economic reports show that Italy’s economic rebound is better than expected. This paired with an unexpected jubilee could have a positive impact on the city’s real estate, as investors see the opportunity to buy and then rent to a massive influx of tourists, with their number predicted at around 25 million people.
What kind of property in Rome is best for investment
The most expensive area on the Rome real estate market is the Spanish Steps and the surrounding area, which cost €13,000 per square meter for restored homes. The cheapest part of Rome is on the market at 3500€ per square meter. Here, however, I will take into account only the areas with interesting yields, thus those that are seen as easily lucrative properties for tourist purposes, such as Testaccio, some areas of Trastevere and Borgo Pio, which can be bought at prices ranging from €5000 to €7000 per square meter. If the investor is interested in buying for private use outside the center of Rome and close to international schools, I would suggest the once prestigious Olgiata neighborhood, which has some very interesting prices for its villas immersed in a beautiful private park, with a golf course and horse riding facilities.
Here are some average prices of different districts of Rome: historical center 8170€ sq.m., Aventino/San Saba 6674€ sq.m., Parioli/Pinciano 6261 sq.m., Trastevere Testaccio 6104€ sq.m., San Lorenzo/Esquilino/Termini 4328€ sq.m., Prati/Borgo Pio/San Pietro 5732€ sq.m.