The Strong Euro And The Italian Property Market

 


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The Euro has performed very strongly against Sterling and the US dollar over the past 6 months or more. This has had the effect of increasing the price of property all over Europe, not just Italy by over 15% to buyers from the United States and the UK.

But how does this affect the plans of many from the UK who have planned to buy property in Italy in 2008? Houses and land for sale in Le Marche have increased dramatically in price over the last five years but they started out from a very low base, often the properties were virtually worthless to the owners and they had let them fall into disrepair.

Property in Le Marche is now more fully valued by the Italian owners and they have a much more realistic idea of their worth to foreign buyers, so real bargains have all but disappeared.

It is important to remember that the rest of Europe is in the Euro zone and is not affected by the strength of the Euro to Sterling or the Dollar when it comes to purchasing Property in Le Marche.

The Dutch, Germans and increasingly the Swiss are finding Le Marche a great place to buy holiday property and will only be constrained by the actual effect that a strong Euro is having on their economies.

The European central bank is also under enormous pressure to reduce interest rates so as to allow the strong Euro to fall in value against other currencies. European exporters and businesses dealing with countries outside the Euro zone are being heavily hit by the strength of the Euro and a lot of the real rise in the Euro is down to “hot money" chasing higher rates and this can easily reverse if the speculators decide to place their money elsewhere.

There are still thousands of Houses for sale in Le Marche even after all the properties that have been sold to foreign buyers over the past five or six years, so even if Continental Europeans continue to purchase property in Le Marche this year, there will still be plenty left for buyers from the UK.

Another positive factor to remember is that if you are starting a large restoration project in the next few months then the relative costs of the rebuilding work should fall as Sterling strengthens over the next year. But the days of relatively cheap labour costs have also passed so buyers should realise that building costs will often be the same as in the UK and allow for this in their forward planning.

It must be remembered that in many villages in Le Marche you can still buy a historic three bedroom village house and restore it to its former glory for around £130,000 so prices are still very reasonable compared to the UK and other Continental countries such as France and Spain. Houses for sale in Le Marche are still cheap when compared to other parts of central and northern Italy and the area has so much more to offer than many of the underdeveloped southern Italian regions.

Le Marche is within easy reach of Rome to the east, Bologna just two hours to the north and Umbria and Toscana less than three hours away across the Apennine Mountains. Together with the wonderful landscape and beautiful seaside resorts, this too makes another good reason for owning a property in Le Marche, whether it be a small village house or a large farmhouse with many acres of land.

As with property purchases anywhere the key to finding good value is local knowledge to make sure the location you are choosing is the right one. For this I would always recommend contacting a specialist estate agent in Le Marche .

Dermott Sales is a UK based expert in property sales and renovation in and is the person to contact for houses for sale in Le Marche . Please contact him on 44 (0)7885 773 433 (UK), 0039 3343256597 (Italy)

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