South Tyrol is a former Austrian territory, which after the First World war became Italian province. Here there are 2 official languages — German and Italian, but 70% of the population speaks German.
Beautiful mountains and a pleasant climate are important drivers for potential buyers. South Tyrol attracts lovers of winter sports. The ski slopes are here in abundance. However, summer here is also very nice. South Tyrol has 300 days of sunshine a year. Here you can see palm trees and mountains at the same time.
The stability of the real estate market
According to many real estate agencies, this region was almost not affected by the crisis in Europe after 2008. Due to the existing shortage of apartments and houses and restrictions on the purchase of housing for foreigners, the prices here remain high even in the most difficult years. According to Sandro Hofer of Engel & Völkers, in the most "backward" regions of South Tyrol prices during the crisis fell by only 10%. Whereas in the rest of Italy the drop was up to 20-30%.
Therefore, South Tyrol is traditionally a "safe haven" for investors. Arianna Giovannini from Lionard Agency notes that the stability of the market is the attracting key to investors from Russia, Latin America, Asian States. Buyers of this type are interested in luxury castles located in the picturesque places.
The housing shortage
One of the factors ensuring the stability of the market is the limited offer. On the one hand, only 4% of the land in South Tyrol is suitable for living. In addition, the government limits the number of objects that can be sold to non-residents. 60% of real estate in South Tyrol is exclusively for the local population.
South Tyrol is the richest region in Italy. Most of the properties are owned by rich families who have no need to sell them urgently. There are about 700 castles. Of these, only 10 are for sale. In cities such as Bolzano, Merano and the ski resorts (e.g. Alta Badia) prices can reach €15,000 per square meter.
Features of buying real estate in South Tyrol
1. Agency Commission will amount to 2-3% (can reach 5%).
2. Restrictions on redevelopment. As a rule, the new object can only be built on the "footprints" of the old.
3. By law, 60% of the real estate is intended for local residents.
4. Long term residents purchasing a first home, receive tax relief and grants from the regional government.
What can you buy in South Tyrol:
€1 million — 2-bedroom apartment in Bolzano or Merano;
€5 million — a country house in the Alps;
€15 million — castle with vineyards.
Text – Alena Eliseeva, ee24
Photocredit Depositphotos.com and Flickr.com