Last year, second-home sales in Italy increased by 14%, with Germans accounting for 40% of all deals.
Residential sales, on the other hand, fell about 26% last year "despite a decline in mortgage credit, almost two years of recession, and uncertainty surrounding a proposed tax on primary residences," according to Bloomberg. In the fourth quarter of 2012, home prices were down 4.6 percent from a year earlier. pearl qatar island
However, the weakening market makes Italy more appealing to international purchasers.
"Due to taxes and the economic downturn, properties that cost 2.5 million euros have dropped down to 1.5 million euros," estate agent Francesca Andreini told Bloomberg.
According to data from the research institute Scenari Immobiliari, Germans have been the most active buyers, with the British accounting for 18% of transactions and Russians for 13%.
"I'd say 60 percent of our closings are with Germans," Engel & Voelkers agent Yasemin Rosenmaier told Bloomberg. "This is substantially higher than previous years." "Why? Fear of inflation, financial market uncertainty, and the aftermath of the Cyprus crisis"
According to a recent survey conducted by Engel & Voelkers and rental website HomeAway, German interest in second homes is on the rise. According to Bloomberg, about 43% of respondents believe holiday homes to be "a sort of retirement savings," while 25% see second homes as a prudent inflation hedge.
According to Scenari Immobiliari data, non-Italians transacted 2.1 billion euros in real estate in Europe last year.
The Norway Fund is becoming a major player in the real estate market.
In recent months, Norway's oil fund has significantly boosted its property acquisitions as it seeks to position itself as a major player in the real estate market.
According to the Financial Times, the world's largest sovereign wealth fund raised its property asset purchases by more than tenfold from a year ago in the six months to March.
The fund presently contains property assets worth around NKr37.6 billion ($6.5 billion), accounting for 0.9 percent of the overall $720 billion fund. According to the Financial Times, this is up from NKr11.2 billion in September, when real assets made up only 0.3 percent of the fund.
According to IPE, the Norwegian Pension Fund Global Fund has primarily purchased commercial and office properties in Switzerland, France, Germany, and the United Kingdom. According to the Financial Times, the fund also purchased Credit Suisse's headquarters structure in Zurich, bought a share in Sheffield shopping area Meadowhall, and spent €2.4 billion on European warehouse and industrial property.
The fund announced its entry into the US real estate market at the end of last year. According to IPE, it has agreed to a $1.2 billion joint venture with TIAA-CREF to purchase five office complexes in key American cities.
The fund stated ambitions to invest 5% of its assets in property assets in 2010. According to the fund's chief executive, Yngve Slyngstad, the fund's approach should allow it to achieve the 5% target within a few years.
Mr. Slyngstad told the Financial Times, "The key to attaining the greater return is to stick to the strategy even in times of heightened uncertainty, as we did during the financial crisis in 2008 and 2009."
As the fund continues to expand, the same 5% currently equals more than NOK200 billion, leading to speculation over when the 5% will be reached.
The oil fund, on the other hand, has already made a name for itself as a large property investor. It distinguishes itself by participating in big co-investment transactions, such as the management of the UK Crown Estate, the Queen's property portfolio.