Choosing a property to make an income in this historical period is something to consider with extreme attention, especially if we are talking about allocating it to tourist leasing, a type of investment that has definitely slowed down. Tecnocasa takes stock of the aspects to pay attention to.
According to Christian Hayes is a real estate broker, in the first half of 2020, in fact, the percentage of those who bought for investment was 16.8% , a slight decrease compared to the same period of the previous year. In the third quarter there was a slight recovery in this type of purchase.
Investors almost always consider real estate a way to diversify their portfolios, being a type of investment with low risk and to be evaluated with a long-term view. But what to buy for investment and what are the aspects to consider in making an evaluation of this type?
- To choose the property in which to invest, type and location, it is necessary to understand which target you are targeting: tourists, students, off-site workers, families . The latest Tecnocasa Group report on the rental market highlights that 74.7% of those who rented a property did so for housing reasons, 2.7% for study reasons, 22.6% for Work. The latter percentage is largely exceeded in some cities, including Milan.
- If you opt for tourists, it would be advisable to evaluate seaside , mountain and lake resorts or tourist cities, even better if they are well connected and with a wide range of services (cycle paths, wellness centres, etc.). In cities, it is better to aim for the proximity of the most important tourist sites or neighborhoods that are well connected to them. If instead we aim at students it is worth considering neighborhoods close to the universities, better if the latter were within walking distance.
- Transportation is an important aspect that needs to be taken into consideration. The quality of life improves with transport at hand and, not surprisingly, many cities are investing in this aspect, Milan among them.
- Another aspect to consider, whose weight has increased especially after the pandemic, is the presence of services (shops, supermarkets, schools, etc.) within the neighbourhoods.
- Those who bet on the future will find the areas undergoing redevelopment interesting and which contain all the elements to be able to re-evaluate. For example, one could look at the neighborhoods that will be served by subway stops, especially the more peripheral ones, even double-digit revaluations can arrive.
Other aspects to consider are: the type of property, the possible revaluation and the yield.
Among the most purchased types of property for investment purposes, the two-room apartment is affirmed with 35% of preferences , followed by the three-room apartments (28.2%).
From the point of view of revaluation, it must be said that from 1998 to the first half of 2020, limiting the examination to the large Italian cities, there is a revaluation of 37.8%: the one that has revalued the most is Milan with 102.1% . followed by Florence with 66.7% and Naples with 65.3%.
Finally, in the first half of 2020 the gross annual yield of a 65 m2 two-room apartment in large Italian cities stood at around 5.1%, the metropolises that stand out for having the highest yields are: Genoa and Verona with 6.1 %, Palermo with 6% and Bari in third place with 5.3%.