Evolution of the Real Estate Market – New Opportunities on Lake Garda
In this blog post, we present an excerpt from an article in L’Arena written by Valeria Zanetti on August 14, 2023.
The holiday season is in full swing on Lake Garda, and like every year, many Italian and foreign tourists will take the opportunity to visit the lake’s real estate agencies to explore the possibility of fulfilling their dream of a lifetime – purchasing a second home on the banks of Benaco. However, this period is also bringing changes to the market, especially for foreign buyers who are more inclined towards the Veneto shore.
“Rising interest rates, inflation, and uncertainty about bank deposits are causing many potential buyers to hesitate. Concrete customers who possess available liquidity remain in the market. When they contact us, they are immediately determined to make a purchase,” explains Francesco Visentin. He, along with Maddalena Magri, leads the Corcoran Magri Properties agency in Garda, specializing in dealing with high-end second homes, primarily sold to a northern European foreign clientele. Just in May, the agency entered into a partnership agreement with the US giant Corcoran to attract a number of international entrepreneurs and figures from the film and entertainment industry to establish their presence on Benaco. “This strategic choice has proven successful, as there has been an increase in demand from English-speaking customers. Thanks to the agreement with The Corcoran Group, we are mitigating the decline,” he adds. However, on the price front, there are currently no changes. “This is due to the limited increase in the real estate portfolio. In other words, the supply of quality properties for sale on the lake is restricted, and this situation is currently counterbalancing the decrease in demand,” he evaluates.
“The province’s allure to Americans and Canadians remains strong,” acknowledges Gentili, who offers upscale housing solutions. “Currently, North American clients still tend to prefer city centers and apartments in historically significant properties. We are working to introduce solutions on Lake Garda, which is relatively unfamiliar in North America, through some advisors in the USA. However, this is only a matter of time,” Francesco Gentili emphasizes. Renato Landoni, the president of Kiron Partner Spa, the credit brokerage company of the Tecnocasa Group, comments on the second home market. “Transactions concluded for homes in holiday resorts are regarded as forms of investment, constituting only a small portion of the mortgages disbursed,” he explains. Yet, even a market fueled by those with liquidity is currently slow. “Due to the inflation bubble’s impact, we have witnessed a decrease in these purchases in the first half of this year. They accounted for 1.4% of the total managed by the Kiron network, compared to 2.4% in 2022,” he observes.