** Elite real estate: More and more buyers of elite real estate are choosing Italy.

We see a positive trend in the luxury real estate market, where transactions have increased by9%, according to notaries. The main factor is the demand for purchases (70%), while the demand for rentals is only30%.

Premium-class residences have benefited from having high-paying investors who have invested a portion of their wealth (around15%) in this type of real estate.

"In2022, luxury real estate transactions have increased by9% compared to the previous year. We observe that buyers prefer exclusive properties and also strive to maximize their investment returns."

If we consider the historical statistics, we can see a constant growth in demand for secondary housing priced at more than one million euros. Over the last five years, primary housing has increased by92%, while secondary housing has increased by61%.

** The Gabetti Research Office provided a profile of luxury real estate buyers.

** In most cases, they belong to Generation X (born between1965 and1979) and younger baby boomers (born between1955 and1964).

"The data obtained from our report shows that the luxury real estate market is in good condition, despite the turbulence of the macroeconomic situation," says Leone Rinon, Chief Operating Officer of Santandrea Luxury Houses & Top properties. "When purchasing such real estate, credit is rarely used, unlike residential real estate. In the luxury segment, potential buyers acquire property mainly out of a desire to own an exclusive residence, a unique property. According to our Santandrea network resource, the demand for premium real estate accounts for predominantly70% of total purchases, while rental requests make up30%. Buyers mainly acquire property for personal use, as a first or second home. However, there is an increase in purchases for investment purposes with alternative use of the property: a permanent residence during certain periods of the year and renting out the rest of the time."

Let's move on to the forecasts for the year2023. Requests received from Santandrea in2023 mainly constitute70% of the total, and rental requests make up30%.

The main goal is to acquire premium real estate, of which40% is for primary housing.35% of transactions are aimed at improving one's own housing. A60% share of investments has been noticed. In this context, we observe some differences between different cities depending on their socio-demographic characteristics.

In2023, the main requirements for housing - high floor and terrace, continue to remain the main elements that distinguish premium real estate. In third place among the requirements are individual or multiple parking spaces: in Naples and Genoa, this requirement is extremely important, while inMilan it is less significant. Outdoor space remains extremely important: panoramic views and a garden have a positive impact on buyers.

The lack of balconies and proximity to noise sources have a negative impact.

The target audience for premium real estate is mainly international clients - about 70% of buyers, while 30% are Italians, says Leone Rignon. In 2023, property prices are being maintained at the growth level of 2022; some cities are stable, and in major cities, we are seeing a proper balance between supply and demand for real estate. Expectations are certainly positive, especially regarding well-known tourist destinations, where second homes are typically sought after, for example, demand for Santa Margherita Ligure is increasing. We are also noticing a renewed interest in major Italian cities, primarilyMilan andRome, as well as secondary cities like Turin, Naples, and Genoa, which are regaining their appeal after the pandemic.

Milan and premium solutions

According to an analysis by the Gabetti research office, Milan continues to be a center of "strong dynamics," mainly due to projects and investments in the real estate sector. TheMilan-Cortina 2026 Olympics will have a significant impact on the city over the next two years and will lead to intense real estate development, especially in the southern part of the city.

In 2023, the real estate market showed varying dynamics depending on the areas considered. Brera and Palestro-Duze are neighborhoods where stability is observed. The historic center remains dynamic, with positive variables in the market. Stability is also present in the "square," except for an increase in supply.

Prices for both new construction and renovation are slightly increasing, especially in the central area. The average gap between the asking price and the actual price is about 8.8%, with peaks of 10% for "square" and Palestro-Duze. As for the average selling time, it ranges from 4 to 6 months; in more dynamic cases, the selling time can be reduced to 3-4 months, as seen in the historic center, Brera, and Magenta-Pagano-Castello.

AnalyzingRome

Rome also continues to showcase a dynamic situation, primarily due to its strategic location and the projects that have been launched or are planned. One of the most important is the construction of the Metro Line C and the investments aimed at making the capital increasingly international.

In 2023, the real estate market shows different trends depending on the areas being considered. The Central district and Pinchiano-Veneto are stable, while demand and the number of transactions are increasing in the Prati and Salario-Trieste areas: supply is decreasing, but prices remain stable.

Demand is increasing in the Aventino and Flaminio areas, but the real estate supply differs: it is decreasing in the first area, while remaining unchanged in the second.

Prices in the city ofRome are slightly increasing for both new construction and renovation, especially in central areas. The average gap between the asking price and the sold price is about 7.4%. As for the average selling time, it ranges from 5 to 9 months, while in active neighborhoods, deals are made within 4 months.