Venice’s market for residential property is witnessing growing demand. This is met however with an extremely limited availability of homes, especially in desirable areas of the city. “The majority of buyers are looking for a second home in Venice, or an investment property for short-term rental to tourists,” said Mauro Lozza, Managing Director of Engel & Völkers in Venice.
French buyers top the list
The residential real estate market in Venice is particular popular amongst international buyers. They account for around 70 percent of residential property sales in the city. This year the largest buyer group are the French (35%), overtaking the British (10%) who now rank in third place. Also strongly represented are buyers from Germany (20%) and the USA (5%).
Top prices per square metre on the Grand Canal
A large part of Venice is set over the 118 islands in the lagoon, while the rest is situated on the mainland. The highest prices are fetched for high-end properties directly on the Grand Canal, reaching as much as 12,000 to 20,000 euros per square metre. The Grand Canal flows through several districts in the historic centre including Dorsoduro, San Polo and San Marco. Apartments in historic buildings, or whole palazzi with high ceilings, beautiful ornamentation, and a balcony or terrace are amongst the most sought-after types of property on the Grand Canal. In addition to water views, outlooks over famous sights such as the Rialto Bridge are also an important criterion when buying. These kinds of property are especially popular among international buyers looking for a second home.
Dorsoduro: artists’ quarter in central location
The artists’ quarter Dorsoduro is well known for its many museums, the “Fondamenta delle Zattere” promenade and the views of the Giudecca Canal. The central location and good public transport links also add to the attractiveness of this district. Residential properties not located directly at the Grand Canal are offered here for between 5,500 and 7,000 euros per square metre. Search clients in Dorsoduro include local, national and international buyers. Accordingly, properties are sought both as first and second homes. Investor interest is also focused here on real estate as a capital investment.
San Polo: desirable location for investment
Some of the most splendid and exclusive palaces in the lagoon city can be found in San Polo. Its central location at the historic heart of Venice means that most of the islands and the mainland are easily reached from this district. The attractive location also makes San Polo one of the most interesting parts of the city for property investments. Prices per square metre for residential properties start here at 5,500 euros and reach up to approx. 6,500 euros. Like Dorsoduro, San Polo is also popular with international, national and local buyers – looking here both for first and second homes.
San Marco: Point of attraction for tourists and investors
San Marco with its famous St. Mark’s Square forms the heart of Venice. There are numerous exclusive and prestigious buildings here with views of St. Mark’s Square, the Grand Canal and the Giudecca Canal. Due to the popularity of San Marco with tourists, buyers’ focus in the area is predominantly on properties for investment purposes. They are looking for both smaller and larger properties for short-term lease. Prices for residential properties start here at 4,500 euros per square metre. Up to 10,000 euros per square metre can be fetched however for exclusive properties with views of the Grand Canal.
Lido di Venezia: Popular second home location
Another desirable location is the Lido di Venezia, situated on a spit of land forming the seaward edge of the lagoon. With its beautiful sandy beaches, it is a highly sought-after second home location, particularly in the summer. This part of Venice is perhaps most famous for being the venue of the annual Venice Film Festival. Sale prices for residential properties here are between 3,000 and 4,500 euros per square metre. The main buyer groups in this region include Germans and Austrians.
Further price rises expected
The unwaveringly strong demand from private buyers and investors for residential property in Venice will result in sustained high prices over the months to come. This high demand is being helped along by factors such as the continuing low interest policy in Europe and the growing Italian economy. “At the same time, the availability of premium properties in good and very good locations will remain extremely limited, meaning that there is no easing of the market in sight,” said Mauro Lozza.