Canny developers are converting luxury townhouses in Venice, Italy, into apartments, which are in high demand from overseas buyers, says Engel & Völkers, which has just opened an office in the city
Developers in Venice, Italy, are converting luxury townhouses into apartments – which are attracting overseas buyers and fetching premium prices of up to up €14,000 per square metre, says a leading agent.
Engel & Völkers has just opened a new office in Venice on the Campo Santa Margherita main square, in the Dorsoduro quarter of the old town.
Giacomo Argenio, Sales Director of Engel & Völkers Venice, says although the lower end of the market has seen prices falls due to the faltering Italian economy, premium prices have held up well.
“The prices for residential properties in Venice’s prime locations have been rising continuously over recent years, however. The premium segment of the market has remained stable, even during the global financial crisis and the Italian recession.”
The reason for this is the high number of international clients. “Most of these interested parties come from the UK, France and Germany. Private buyers account for around half the total demand.
“Now that the Italian economy is growing once again, the market is also becoming more attractive for domestic buyers. We are seeing significantly more activity here.”
Engel & Völkers is anticipating that the market for exclusive residential property will continue to grow. “The strong level of demand from abroad will continue to sustain the on-going rise in prices. The number of investors on the residential property market, compared to private buyers, will continue to increase in the medium term.”
Developers are increasingly converting historic townhouses into luxury apartments that can reach up €14,000 per square metre. “The most desirable residential areas in the city are the central and very exclusive district of San Marco, the artists’ quarter Dorsoduro and Castello, as well as all locations close to the Canal Grande and Canal Giudecca.
“In keeping with this desirability, palatial Venetian townhouses, known as palazzi and exclusive freehold apartments are bought and sold here for high sums. In the absolute top location in the city, between the Rialto Bridge and St. Mark’s Square, top prices of up to €14,000 per square metre are being reached for very high-end apartments that offer canal views.
“Historic palazzi can cost up to €18million here. These properties are particularly sought after amongst investors, who usually then convert them into luxury apartments, as the potential to construct new buildings in the centre of Venice is virtually non-existent.”
Luxurious homes are high in demand on the Lido di Venezia alongside the city and in mainland areas, where prices are significantly lower, including Palladian-style villas along the Riviera del Brenta.
Pictured is a villa in the artists’ quarter known as Dorsoduro consists of two separate units 415 square metres with 13 rooms. The property, set directly on a canal, is on the market through Engel & Völkers at €1.95million.
Venice attracts more than 22 million visitors every year. The Renaissance city is famous for its spectacular history, architecture, art and romance.
By Adrian Bishop, Editor, OPP Connect