How many luxury homes are there in Italy? - Immobiliare.it news

In Italy, luxury homes represent an exceptional niche in the vast real estate market. According to the 2022 cadastre data, the national territory has 68,720 luxury homes, representing less than 0.2% of the total number of registered residential properties in the country. However, this data raises questions about the accuracy of the representation of luxury in the Italian property context.

What is a cadastre and what types of real estate exist? The Cadastre, the national territory's real estate registry, classifies real estate into various categories, including luxury, identified as:

• cadastral category A/1luxurious apartments
• cadastral category A/8villas
• cadastral category A/9Castles and historic estates since 2014.

This classification directly affects the taxation of prestigious real estate.

Taxation and the cost of luxury homes: Luxury homes are subject to higher taxation compared to standard residential properties. For example, purchasing a luxury property involves a registration fee of 9% of the cadastral value, and when buying from a developer, there is also a VAT of 22%.

Reality and discrepancies: Despite the official number of 68,720 luxury homes, more detailed analyses indicate a different reality. Corriere della Sera and Il Sole 24 Ore emphasize that many properties classified in different cadastral categories (such as A/2 or A/7) exhibit signs of luxury and achieve very high valuations once placed on the market. This observation suggests that the actual number of luxury homes may be underestimated.

A study of prices and sales: An additional study conducted by Il Sole 24 Ore analyzed the 100 most expensive listings of 2021 in six major Italian cities and found that only 7.9% of the listings were classified as A/1 or A/8. This study shows that the majority of expensive homes are not officially recognized as luxury properties from a cadastral perspective, allowing them to benefit from more favorable taxation.

Luxury homes in Italy represent a particularly interesting segment of the real estate market, not only due to their exclusivity and economic value but also because of the tax implications and unique characteristics that set them apart. Analyzing cadastral data, along with market research, reveals a complexity that goes beyond official statistics, highlighting the need for deeper reflection on the concept of luxury.