The coronavirus pandemic has changed the face of all commercial activities in every country. As Italy slowly emerges from lockdown, the property market, an essential part of the Italian economy with relevance in three sectors, residential, commercial and tourism will feel the effects of the pandemic. Property markets across Europe will inevitably experience the impact of the coronavirus crisis.

Real estate is a key aspect of most country’s economic success. Italy’s property market unlike other European countries has been suffering a steady decline over recent months. The government introduced a number of innovative schemes, together with low interest rates and the willingness of the Italian banks to lend and provide mortgages; the strategies began to kick-start the residential real estate sector, mainly in the southern regions of Italy. Gambrone’s highly experienced Italian real estate team was actively involved in assisting prospective purchasers to navigate their way through the schemes, advising on the best approach when dealing with the Italian authorities involved and supporting them through the various processes required to access the schemes.

The wealthier northern regions such as Lombardy did not experience the same depressed market. An increase in property sales was seen and Italian residential property became an attractive prospect to overseas purchasers. However now the region of Lombardy, which regrettably suffered considerably from the coronavirus, will not have the same position as one of the most attractive regions to buy real estate and will have to find ways of rebuilding its position.

Prior to the devastating effects of the coronavirus pandemic the Italian market analyst firm Nomisma had anticipated 613,000 residential property sales throughout Italy this year. Whilst a significant drop in property prices and a knock-on effect in a steep decline in sales cannot be avoided, some of the more negative predictions may be overstated. The interest from foreign buyers is depressed whilst the borders are still closed but it will rise again in response to the opportunities to buy attractive properties at extremely favourable prices. Investors will no doubt continue to pause their real estate acquisitions whilst the economic outlook is still uncertain but will be quick to see opportunities in the coming months.

Even during the present crisis there appears to be considerable activity surrounding online real estate research. Analysts believe that many prospective purchasers, both individuals and commercial investment fund managers, are using the lockdown to investigate the real estate market potential in Italy gather as much information as possible to enable them to make informed decisions when the global markets return to a degree of normal activity as is evidenced by an increase in online activity relating to the Italian property market.

Serious as the coronavirus pandemic and the lockdown are, the situation will slowly improve as each country relaxes its lockdown policy as the severe consequences of the pandemic are carefully managed to restore the capacity to do business and build their economies again. Legal Law Limited’s Italian offices are opening again and our real estate lawyers continue to assist our clients with regard to their purchase of Italian real estate and advise potential buyers as to the best opportunities arising from these unprecedented circumstances. Legal Law Limited plays a part in fulfilling our clients’ objectives of owning a house in Italy and restoring Italy’s real estate market.