Hopes for Italian and Portuguese Property in 2012
15 December 2011
The Eurozone is in a lot of trouble. Apparently there is absolutely no risk of the Eurozone disbanding, plunging Europe and the world into uncertainty, but quietly the banks and institutions contemplate and possibly even prepare for such an outcome, and if not that then a Spanish or Greek departure. However, if, like me you believe that the strength of global capitalism has enough in its reserves to see the Eurozone through this crisis, and this could mean good things happening in the Italian and Portuguese property markets in 2012.
Spain, Greece and Ireland have already seen mini-surges of foreign demand as their prices went to record lows. But Italy and Portugal had no overdevelopment, and they had no bubbles to burst, so their prices didn't fall as hard and they missed out on these mini-booms.
Now these markets have the chance to see much greater demand. While Spain, Ireland and Greece are high risk, they represent much greater stability. But over the next few months we can expect to see prices fall in all the PIIGS' property markets in the coming months as this crisis really gets to the nitty gritty. The Euro will also weaken against almost all currencies, making Portuguese and Italian property even better value for money.
Some Italian agents are already reporting rising foreign demand. Linda Travella, of Italian property firm Casa Travella, said that activity is picking up to pre-crisis levels.
"The last quarter of 2011 is the busiest it has been for four years with a surprising amount of enquiries and sales for Italian property. These are not all coming from the UK but from international clientele," she said.
"I see the market for buying property in Italy staying buoyant for the first two quarters of 2012. We already have clients booking to view property for sale in Italy in January, which is something that does not happen every year, as it is normally a quiet month."