In reality, there's never a perfect time to buy a house anywhere. The property market and global economy change rapidly, but whether you should buy a property or not also highly depends on your personal financial situation more than anything. Nevertheless, there are certain elements in the Italian real estate market that are important to take into account. Are property prices falling in Italy?Is 2022 a good time to buy property in Italy? We explain everything.
- Current real estate market in Italy
- Rising interest rates
- Italian house prices on the up
- Mortgages for young buyers
- Buy or rent in Italy in 2022?
Current real estate market in Italy
While your personal financial situation is key in deciding whether it's the right time to buy in Italy, there are several other factors in the Italian market that could also affect your decision whether to buy or rent. With pressures on demand in certain parts of the country, you have to act quickly to get the house of your dreams in Italy, as well as taking the following points intoconsideration.
Rising interest rates
One of the challenges faced by potential home buyers in Italy in 2022 is taking out a mortgage. Euribor interest rates, on which Italian mortgages are based, are rising thanks to inflation and the war in Ukraine, meaning higher mortgage instalments and more pressure on household budgets. For more information about mortgages in Italy and how much you could pay, check out the idealista/mutui mortgage simulator and find your mortgage.
Italian house prices on the up
House prices in Italy are on the rise and this upward trend is set to continue throughout the year. In spite of this, according to realestate experts, prices are expected at a steady rate and not as rapidly as in other EU countries. In spite of rising prices,the residential real estate market is showing its resilience and people are committed to buying property, considering it a safe investment in 2022.
Mortgages for young buyers
For those who are under 36 and wish to buy their first home in Italy, banks have special rates as part of Italy's "bonus prima casa" (first home bonus) which is part of the government’s Sostegni-Bis Decree. If you're buying property in Italy in 2022 and fit the criteria, make sure to check all the options with banks, as you could save a lot,especially when it comes to taxes.
Therefore, for young people planning to buy property in Italy, now could be the perfect time. Originally set to expire in June 2022, the measure has been extended to December this year,giving buyers a further opportunity to get financial help with purchasing their first property. Note that this applies to everyone who is an official resident in Italy and for properties up to a maximum value of 250,000 euros.
Buy or rent in Italy in 2022?
For those undecided as to whether buying property in Italy is the right choice, renting is also an option. This depends on your financial situation, whether you can afford to pay a deposit for buying a house up front or not, and whether you intend on staying in Italy for a long period of time. For more details, check out our guide on whether it's better to buy or rent property in Italy in 2022.
