Real Estate Market Analysis
The Italian real estate market is experiencing significant growth, with forecasts predicting a revenue increase of 3.4% by the end of 2024 and 5.7% in 2025, positioning Italy at the forefront of the European real estate sector. Nationally, residential transactions are expected to rise, reaching 720,000 in 2024 and approximately 760,000 in 2025, marking a 36% increase compared to 2020. This dynamic is supported by robust demand and the recent reduction in interest rates by the European Central Bank, which has made mortgage credit more accessible.
Regarding prices, an average growth of 3.1% is expected nationwide, with sharper variations in major cities. Milan leads this trend with a projected increase of 6.9%, followed by Venice (+6.5%) and Rome (+6%).
Focus on Sanremo
Sanremo, a renowned location on the Ligurian Riviera, reflects national trends with some local peculiarities. According to the most recent data, the average price of residential properties for sale is approximately €3,210/m², recording a 5.87% increase compared to the previous year. For rentals, the average price is €13.16/m² per month, with a 14.14% annual increase.
Foreign Demand
A distinctive feature of Sanremo’s real estate market is the strong demand from international buyers. Thanks to the city’s timeless charm, mild climate, and growing tourist appeal, many foreigners choose Sanremo as a place to purchase second homes or invest in premium properties.
Reduced Supply and the Short-Rent Market
The local market is facing a decline in property supply. This phenomenon is largely due to the transformation of many properties into short-term rental accommodations. Sanremo is experiencing a boom in short-term rentals, driven by the de-seasonalization of its tourist offerings and a property occupancy rate that approaches 80% annually. This trend has revitalized many properties, reduced the availability of traditional homes for sale, increased the value of remaining properties, and fueled demand from investors seeking attractive returns (7-9%).
Analysis of Sanremo’s Zones
Analyzing the different areas of the city reveals significant differences:
- San Martino, Villetta, La Brezza, Tre Ponti: This area records the highest prices for sales, with an average of €3,789/m².\n- City Center: Prices are around €3,685/m² for sales and €14.87/m² per month for rentals.\n- Verezzo, San Romolo, Borello, Coldirodi: These areas have the most affordable prices, averaging €2,113/m² for sales.\n- Zona Foce: Zona Foce, one of the most sought-after areas for both rentals and sales, offers premium properties and a strategic proximity to the sea. Average prices are around €3,550/m² for sales, driven by high demand due to the quality of services, tranquility, and closeness to beaches.
Nominal and Real Prices
Despite the increase in nominal prices, it is important to consider that inflation could erode real gains. According to Nomisma, prices are expected to grow in nominal terms but not sufficiently to offset the increase in the consumer price index, leading to a slight decline in real terms.
Conclusion
In summary, Sanremo’s real estate market shows positive signs, with increases in both sale prices and rental rates. However, reduced supply, strong demand from international buyers, and the impact of inflation are key factors to monitor. The growing importance of the short-rent market and high annual occupancy rates are additional elements of dynamism for the sector, contributing to making Sanremo a vibrant and ever-evolving real estate market.