Italy faces the 'Upside Down' Trend

While the property market almost all over the world is facing a downfall, in Italy, there’s has been observed an increase in the enquiry for properties in the south.  Italy’s domestic property market has long had two major splits - city and country, and north and south.

For years, people have always been looking for properties in the northern part, such as Milan. Even though properties in the south have been affordable, the rural market property has seen a slow decline.

Due to the rise of remote working, many people can now consider moving to a more spacious property in a cheaper area. Others are looking at returning to southern hometowns after previously moving north to find work.

Many people had looked at escaping the city during the lockdown. Hence, it is observed that the demand for property in the south is now booming. The area which has the highest increase in demand is the Barletta-Andria-Trani area in Puglia. There has been a 60 per cent increase in search for properties

It was followed by Rieti with 56% and Agrigento at 55%.

Known as the reversed trend, in the past months they have had more enquiries from people wanting to move to this area, most are originally from Italy and became tired of living in a northern city. One misses their hometown, family sea and food as well.

There have also been enquiries from people from other parts of Italy and Europe who want to move there for various reasons. Meanwhile, demand for property has dropped by ten per cent in Milan, where prices have traditionally been among the country's highest.

In most other cities, however, demand quickly resumed after lockdown.

Verona saw the biggest increase in demand at 59%, Genoa 32% and Rome 25%.

The question prospective buyers and sellers have been facing over the months of the pandemic is the same- Will house prices will fall? Although it is too early to see a marked change in prices in most areas.

Does the new rise in demand for property in the south mean prices rise, too?

As said, it is too early to predict if the increase in demand could have an effect on property prices in the south.

However, we’re talking here about enquiries, not offers, not sales. It is possible, many people who are looking for properties are just dreaming. Demand on the international market - which focuses on holiday and retirement homes and luxury properties - may be different and has reportedly remained more stable throughout the pandemic so far.