Unlike the traditional Tuscan residential housing market, the luxury sector is firmly on the ground, according to recent data by the renowned property consultant Knight Frank. The prices decreased by 40% from top to trough in the past decade, but have recently steadied, with both Florence and Lucca growing by 1% in 2018. According to most current statistics, in the year ending in March 2019 the area accounted for 62% of our Italian application numbers. service
The current recovery is attributed not to local demand, but to foreign enquiries. Buyers focus more on the unmatched lifestyle offered than on the political and economic climate.
Banking and government issues in Italy are nothing new. The €100,000 flat tax introduced in 2017 is a significant appeal for the wealthy. According to Fabrizio Pagani, the Minister of Economics and Finance, 150 UHNWIs requested citizenship in 2018.
Italian nationals benefit from a flat tax of €100,000 on all overseas earnings under the program. Qualifying family members also have a flat tax of €25,000.
In accordance with this, we have witnessed a separation of the super-prime market last year, where property enquiries of the value of 10 million euro or more have increased. Following the advise of your family office, some people with high net worth already own an Italian house and are keen to extend their footprint in the region, sometimes pursuing several properties in a range of places - on the coast and in the mountains.
In 2018, the Middle East, the U.S., the United Kingdom, the Benelux and India were the successful purchasers in Tuscany. Although most people are seeking for a holiday house, a rising number are looking for a permanent abode.
There are growing numbers of foreign inhabitants in Tuscan cities. Almost 100,000 foreign citizens reside in Florence, Lucca, and Pisa, according to the Italian Statistical Office (Istat).
The international population in Florence rose by 38.5% between 2012 and 2018, with the majority of the three cities.
One thing that jumps out this year is that we have time-stricken candidates, which impact their search in many ways. Initially, most individuals desire a refurbished project rather than a project that requires repair.
Second, purchasers prefer to be near one hour of an airport, enabling them to visit the property for mini-breaks four or five times a year and the time of travel is usually gone for one month in the summer. Finally, most individuals plan to remain at home for at least five years in order to rent it to pay costs, thus a low-care property is preferable.
Buyers are also searching for excellent bargains and Lucca is firmly in the limelight with prices 20 to 25 percent cheaper than in Florence. Lucca is easy to reach from Pisa Airport, only a 30-minute drive from the Mediterranean Sea and hosts a world-famous Summer Music Festival.
Some of the highlights of the Tuscan luxury home market are as follows:
The 100,000 euro flat tax is the main attraction for the wealthy, which in 2018 attracted 150 UHNWIs to the nation.
The railway from Florence via Lucca to Vareggio is renovated. After the project is finished in 2020, Lucca will take the train from Florence within 45 minutes.
A new 5.3 kilometer tram links the city core of Florence to the airport. The new T2 line cut travel times to 21 minutes and made the city even more accessible.
After a peak-to-trough decline of 40%, prices have steadied in Tuscany. Both Florence and Lucca increased their prices by 1% in 2018.
Tuscany contributes for 62 percent of the Italian application numbers of Knight Frank.
The new flat tax has boosted demand for property worth more than €10 million, with many rich families purchasing multiple homes throughout Italy.
The most active customers are from the Middle East, the United States, the United Kingdom, Benelux and India.
There are growing numbers of foreign inhabitants in Tuscan cities. There are currently more over 100,000 foreign citizens in Florence, Lucca and Pisa.
The international population in Florence rose by 38.5% between 2012 and 2018, with the majority of the three cities.