About a year ago, we wrote about a gradual turn in the prices urban real estate in the Italian towns and cities and that we predicted a rollout of the firming prices into the countryside. In the financial history since 2008, Spanish property prices dropped precipitously but have since had entered a recovery. Meanwhile, the Italian tortoise took his time in decline, the price trajectory being less steep but he went on for longer. This has now changed as our tortoise has noted the hare and is following him to higher ground.
In the intervening year, we have spent a great deal of time looking at properties and studying the market place. From our point of view, at Onestone, we are seeing a pick up in the level of enquiries and corresponding prices, predominantly starting in the cities but moving slowly out into the countryside. There is a good deal of supply to meet demand so we do not see prices racing away but we do note a firmer tone where asking prices are not now being discounted too heavily. There is still room to negotiate and that is now what makes this market most interesting.
Previously, in my role as Chief Investment Officer for global financial markets based in Asian Private Wealth Banks; I had long (it took a while to get here) predicted arriving at the place we are today, whereby the Fed is well into tightening mode and fixed income and equity markets are acknowledging it through synchronised negative price movements. So at last, we are in the predicament of what constitutes a good asset class to hedge the majors?
While I am not saying that real-estate will go up in the face of the other major markets getting jittery, I am saying we we view real-estate as low correlation asset with good prospects for capital preservation. Now that the deflation from 2008 has finally worked its way through, for those with cash to spend or even with a capacity to borrow, prices in central Italy are the most attractive they have been in decades.
I am planning a visit to Asia from 5th to 15th November, predominantly in SG and HK. I invite readers of our blogs that have an interest to speak, to please email me directly (email@example.com) for an update on investment prospects.
We have a good portfolio of properties which are available, and if you are interested in something else, we work on client briefs to deliver bespoke solutions. We have been doing this across all of Italy, from Trieste to Naples with a good of success derived from our client’s satisfaction levels.
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