Is now a good time to buy real estate in Italy?

In reality, there is never an ideal time to buy a house anywhere. The real estate market and the global economy change rapidly, but the decision to buy property or not largely depends on your personal financial situation more than anything else. However, there are certain aspects of the Italian real estate market that are worth paying attention to. Are property prices in Italy dropping? Is 2022 a good time to buyreal estate in Italy? We will explain everything.

The current real estate market in Italy

Although your personal financial situation plays a key role in deciding whether to buy in Italy, there are other factors in the Italian market that can also influence your decision to purchase or rent. With pressure on demand in certain parts of the country, you should act quickly to secure the home of your dreams in Italy, as well as consider the following points.

Increase in interest rates

One of the problems faced by potential homebuyers in Italy in 2022 is obtaining a mortgage. Euribor interest rates, which are the basis for mortgages in Italy, are rising due to inflation and the war in Ukraine, leading to higher mortgage payments and increased pressure on household budgets. For more information on mortgages in Italy and the amount you can afford, check out the idealista/mutui mortgage simulator and find your mortgage.

The rise in real estate prices in Italy

Housing prices in Italy are rising, and this upward trend is expected to continue throughout the year.

Mortgages for young buyers

For those under 36 years old looking to buy their first home in Italy, banks offer special rates under the "bonus prima casa" (first home bonus) program, which is part of the Sostegni-Bis decree from the government. If you are purchasing property in Italy in 2022 and meet the criteria, be sure to explore all options with banks, as you can save a lot, especially when it comes to taxes.

Therefore, for young people planning to buyreal estate in Italy, now may be the perfect time. Originally valid until June 2022, the measure has been extended until the end of this year, giving buyers an additional opportunity to receive financial assistance when purchasing their first property. Please note that this applies to anyone who is an official resident in Italy and to properties valued up to a maximum amount of 250,000 euros.

Buy or rent in Italy in 2022?

For those who are unsure whether to buy property in Italy, renting is also an option. It depends on your financial situation, whether you can afford to pay a deposit for buying a house upfront, and whether you intend to stay in Italy for a long period of time. For more detailed information on whether it's better to buy or rent property in Italy in 2022, check out our guide. Find properties for sale in Italy.