Where do expats choose to live in Italy?

During the COVID-19 pandemic, foreigners continued searching for property in Italy. A recent study by idealista/data shows that the pandemic generated a general decline in domestic and foreign housing demand, however, the latter increased its weight during the period of greatest emergency and expats continue to show interest in the Italian real estate market and look for houses abroad.

From the analysis, a general change in the destinations where foreigners are most interested in buying property and living has emerged. During the period from 2nd March to 15th April 2020, searches were focused on the Lombardy region, one of the regions that was most affected by the coronavirus pandemic, probably with speculative intent from buyers or for investment purposes, in anticipation of a possible fall in prices in the area.

Foreign investment in Italy in 2020 

Giada Marino, the idealista/data manager for Italy stated that "the data analysed by the "Report della Domanda Internazionale" (International Demand Report) shows a slight increase in the weight of international demand between the pre-COVID and COVID-19 period. This data is very interesting for the Italian real estate market and reconfirms the investment interest linked to the second home market by foreign demand. We have recorded an increase in international demand, in particular, in Sicily, Sardinia, Apulia, Calabria, Tuscany, in the areas surrounding Italy's great lakes and in the Alpine area".

In fact, foreign and expat demand is even growing in some provinces of Sicily, such as Trapani and Syracuse, sought after by the German, French, American, British and Belgian international demand. There is also growing interest in some provinces of Apulia, such as Bari and Lecce, which are more sought after by German, Swiss and British expats, as well as growing interest in the Sardinian provinces of Sassari, Nuoro and Oristano, which are most sought after by German, French and Swiss international demand. The interest in the provinces of Perugia and Siena is also reconfirmed.

• Find property for sale in Italy on idealista

Italian real estate and COVID-19: interest is not decreasing

Even in northern Italy, demand is not decreasing as a result of the emergency. "Despite the fact that northern Italy has been hit hardest by the health crisis," explains Marino, "international demand is growing for the provinces bordering Lake Como, Lake Garda, Lake Maggiore and Lake Iseo, locations sought after by US, German, Russian, Swiss, British and French buyers and investors. I can therefore say that we have not noticed any substantial negative changes in international demand in the pre-coronavirus market and the period immediately following".

What can be expected from foreign investment?

Italy is confirmed as a tourist destination that attracts investors in the second home sector of the market," according to Giada Marino, "and this slight increase in demand could probably be explained by the difficulties encountered by the tourism-hotel sector and the widespread feeling that the pandemic could lead to a substantial drop in house prices. As far as this last point is concerned, we are monitoring the price trend of the Italian real estate market on a weekly basis and, for the moment, we have not noticed substantial changes in asking prices (+1% on a national level compared to a year ago); however, we will also have to check the values of transactions; there will likely be a greater elasticity between asking and closing prices".

• The full report in Italian can be consulted here.