Located in northern Italy, on the border with Austria and Switzerland, Trentino Alto Adige is among the Italian regions best known for its Dolomite mountains. Among the most exclusive locations are Bolzano, Merano, Brunico, Trento, Riva del Garda and Madonna di Campiglio. Even during the coronavirus pandemic, the luxury real estate has seen high interest by Italians as well as international buyers. “We have noticed a rising interest in luxury properties, with an increased demand for large outdoor spaces, with gardens or big terraces. Clients search for a safe haven in nature, from which they can make use of the space for smart working purposes,” explains Davide Bonalumi, Managing Partner of Engel & Völkers Trentino.
According to the analysis of Engel & Völkers, Bolzano is among the most attractive cities in South Tyrol for local buyers who are mainly interested in purchasing a property in the first home market. German clientele, who make up the largest international buyer group, seek for real estate that can be used as their second home. Prices for houses here can reach a maximum of 3.5 million euros, whereas maximum square meter prices for flats reach up to 10,000 euros. Areas such as Val Gardena and Salto-Sciliar are instead preferred by citizens from North East Italy as a second home purchase. Freehold apartments in prime locations such as Val Gardena sell for top prices of up to 13,000 euros per square meter in 2020. Detached properties here reach purchase prices of up to 6 million euros. Property buyers are searching in particular for new buildings and renovated apartments with terraces, as well as houses with a large garden and outside areas.
Merano attracts around 65 percent of international buyers, with highest interest from Germany and Switzerland. The most sought after areas are Maia Alta, Maia Bassa and Rione Musicisti. The property search is targeted in particular at penthouses with panoramic views or on buildings with large outdoor spaces, with terraces or gardens. In the center of Merano, prestigious flats or penthouse apartments reach up to 7,000 euros per square meter and as much as 2.3 million euros for detached properties. In the district of Maia Alta, well-known for its villas, mansions and castles, a maximum of 3.4 million euros can be asked for exclusive villas and historic estates with parks.
As for the city of Brunico, the most attractive areas for buyers are those of Alta Badia, San Candido and Sesto. Here the clientele is around 90 percent Italian, followed by 10 percent of buyers from the DACH region, who are looking for a second home as Brunico is known to be a UNESCO heritage site and is a real paradise for sportsmen and hikers. Most sought-after are premium flats and chalets with gardens or terraces, and a short distance to the ski-lifts. Prices go up to 10,000 euros per square meter for the most exclusive freehold apartments and 4 million euros for villas. Engel & Völkers expects German property buyers to increase in the upcoming months.
The Bolghera district and the eastern hilly area of Trento are in great demand, in particular the towns of Villazzano, Martignano and Cognola. Due to their proximity to the center of Trento and the great availability of services, they represent the ideal location for a first home for families with children or couples. In Trento, Engel & Völkers reports an increase in prices, reaching 5,000 euros per square meter for freehold apartments in the most historic areas. A maximum of 2 million euros can be asked for detached houses. Here, international clients mainly come from Germany, followed by Austria and Holland.
Due to its exclusive mountain resorts, Madonna di Campiglio is mainly valued by an Italian clientele who come in particular from Milan, Brescia, Verona, Parma, Venice and Rome. Here, too, the proximity of the ski lifts is very sought after and customers are willing to buy prestigious real estate with a price of up to 15,000 euros per square meter for properties under construction in the city center with the highest construction quality. Maximum asking prices for detached properties reach up to 6 million euros.
South Tyrol is and has been a safe haven for many international buyers also during the coronavirus pandemic. Properties with large outdoor spaces such as gardens and substantial terraces have been favored during this time. “The region is steadily heading back to the acquired new normal, we are expecting the number of buyers, national and international, mainly from Northern Italy and Germany to grow significantly. South Tyrol is also a safe haven for the summer where there are plenty of opportunities for outdoor activities,” concludes Elfi Untergassmair, Managing Partner of Engel & Völkers Southtyrol with Shops in Merano, Brunico and Bolzano. Property prices are expected to increase by the end of 2021.