The residential property market in Florence is entering into a period of growth again, after the economic downturn of recent years. Refurbished apartments at prime addresses in the city with exclusive fittings are currently fetching up to 8,000 euros per square metre. “Properties attracting the greatest interest include splendid renaissance palaces that have been converted into luxury apartments,” said Winfried Mauthner, Managing Partner of Engel & Völkers Florence.
Hillside and riverfront apartments command the highest prices
The finest locations in Florence can be found along the banks of the River Arno. Buyers of upper-level apartments here can expect to pay between 5,500 and 8,000 euros per square metre. “The higher up an apartment in the building, the higher the price. That is especially true if it features a balcony or roof terrace overlooking the red tiled rooftops,” said Winfried Mauthner. Other desirable locations include the historic city centre and the former artisan districts of Santo Spririto, San Niccolò, Santa Croce and Sant’Ambrogio. Investors are particularly interested here in smaller apartments of approx. 60 to 80 square metres, for rental to tourists. Hillside districts on the outskirts of the city such as Porta Romana and Poggio Imperiale south of the River Arno are also sought after. Prices per square metre for freehold apartments can reach 5,800 euros here. Villas in these areas sell for as much as 6,500 euros per square metre. Another highly desirable hillside location is the small town of Fiesole north of the metropolitan region, where freehold apartments cost up to 5,000 euros per square metre.
Growing interest from foreign buyers
It is not just interest in residential real estate from national buyers that is growing, in light of the stabilisation of the economy and Florence property prices. “Foreign investors are being drawn due to the fact that prices are still relatively low compared to other cities internationally” said Winfried Mauthner. The main buyer groups are from the UK, Scandinavia, Germany and Switzerland. In addition, buyers from the USA and Latin America are also expressing interest. Interested buyers from abroad currently account for around 40 percent of the market.
Outlook: central refurbished apartments becoming increasingly limited
The gradual upward trend on the Florence real estate market is set to continue in the coming months, according to Engel & Völkers. An important factor driving this growth is the strengthening economy, which is profiting from the growing tourist trade in particular. Wine, textiles and shoes constitute other key industries. The number of transactions is rising along with the growing population, while the number of available properties is on the decline. Price rises can be expected as a result of the high level of demand, especially for refurbished apartments in the city centre.