Is buying a property in Bergamo a good investment?

Last updated on December 29, 2023

Yes, the analysis of Lombardy's property market is included in our pack

If you've seen the historic charm and scenic beauty in Bergamo, you might contemplate making this Italian city your next property investment.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Italy, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Bergamo?

Bergamo, nestled in the Lombardy region of Italy has garnered significant attention from property buyers for several reasons.

Let's explore what sets it apart from other real estate markets, particularly within Lombardy, its rise in popularity, the demographic it attracts, and also consider some of its potential drawbacks.

Firstly, Bergamo offers a unique blend of historical charm and modern amenities. Its upper city, 'Città Alta,' is a stunning medieval town with well-preserved architecture, cobbled streets, and picturesque views.

This contrasts beautifully with the more contemporary and bustling lower city, 'Città Bassa.' This duality is quite distinct compared to other areas in Lombardy, which may not offer such a vivid contrast within the same city.

In terms of popularity, Bergamo's real estate market saw a notable surge in interest in the early 2000s. This was partly due to improved accessibility with the expansion of Milan Bergamo Airport and enhanced rail and road connections to Milan and other key locations.

The continuous improvement in infrastructure, coupled with the city's growing reputation as a cultural and gastronomic hub, suggests that Bergamo's appeal is here to stay.

Bergamo tends to attract a diverse group of people. You'll find young professionals drawn to the vibrant lifestyle and employment opportunities in the lower city. Simultaneously, families and retirees often prefer the tranquil and historic upper city.

This versatility in appealing to different demographics is somewhat unique compared to other areas in Lombardy, which may cater more specifically to one group or another.

However, it's important to consider some of the potential downsides. Bergamo's popularity can mean higher property prices, especially in the more sought-after areas of the Città Alta.

Also, the city's charm and historical significance come with the responsibility of preserving its architectural heritage, which might limit modern development or renovation options.

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Why is Bergamo a nice place to live?

Bergamo offers a lifestyle and culture that's both enriching and unique, making it a wonderful place to live.

Let's dive into what life in Bergamo is like, covering everything from its expat community to infrastructure and public transport.

The lifestyle and culture in Bergamo are deeply rooted in Italian tradition. The city is split into two distinct parts; the Città Alta (Upper Town), a beautiful medieval area with stunning architecture, and the Città Bassa (Lower Town), which is more modern and bustling. This blend offers residents a taste of historical Italy while still enjoying contemporary comforts.

The local cuisine is fantastic, with restaurants serving traditional Lombard dishes. The city also has a vibrant arts scene, hosting numerous cultural events and festivals throughout the year.

For expatriates, Bergamo is an increasingly popular choice. The expat community, though not as large as in cities like Milan, is growing and welcoming. This community provides a support network for newcomers navigating the intricacies of moving to a new country.

Cost of living is an important consideration. While Bergamo is not as expensive as Milan, it's not the cheapest place in Italy either. Housing costs can vary greatly between the more historic parts of the city and the newer areas.

Safety is a key aspect of Bergamo's appeal. The city is generally considered safe, with low crime rates, especially in comparison to larger metropolitan areas in Italy. This sense of safety adds to its charm, especially for families and those looking to enjoy a more relaxed lifestyle.

In terms of amenities and facilities, Bergamo is well-equipped. There are several reputable schools, including state schools and private options, catering to different educational needs.

The city's healthcare facilities are commendable, with hospitals like Ospedale Papa Giovanni XXIII providing excellent medical care. For shopping and leisure, there are numerous centers, including the Orio Center near the airport, offering a wide range of shops and eateries.

Infrastructure in Bergamo is robust. The roads are well-maintained, making driving around the city and its surroundings a pleasant experience. Utilities and services like electricity and water are reliable.

Internet connectivity is generally good, with several options available for high-speed connections, crucial for both residents and the growing expat community.

Accessibility is a strong point for Bergamo. It's well-connected to other parts of Lombardy and beyond. The city is just a short drive or train ride away from Milan, and there's also easy access to the lakes and mountains of Northern Italy.

Bergamo's own airport, Orio al Serio International Airport, offers numerous domestic and international flights, making travel in and out of the city quite convenient.

Public transportation in Bergamo includes a comprehensive bus network and a funicular connecting the Città Alta and Città Bassa. This system makes getting around the city straightforward and is a practical choice for those who prefer not to drive.

How much does it cost to buy real estate in Bergamo?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Italy.

When considering the cost of buying property in Bergamo there's a variety to explore.

Bergamo offers a range of residential properties, including apartments, houses, and for those looking for something more opulent, luxury villas. The type of property you choose will significantly influence the price.

The most sought-after properties in Bergamo are often those located in the historic Città Alta (Upper City), known for its medieval architecture and charming streets.

Apartments here, especially those with views or in well-preserved buildings, are in high demand. The Città Bassa (Lower City), with its more modern amenities, also offers a range of housing options, from contemporary apartments to family homes.

Regarding new developments versus resale properties, Bergamo has a mix of both. In the Città Alta, due to its historical significance, you'll find more resale properties, often in buildings with historical value. The Città Bassa and surrounding areas may offer more in terms of new developments.

The price range for properties in Bergamo varies widely. In general, you can expect the cost per square meter to fluctuate depending on the area and type of property.

For a standard apartment in the city, prices per square meter can range significantly. Premium properties, especially those in sought-after locations like the Città Alta, can command higher prices.

Over recent years, property values in Bergamo have seen a gradual increase. This trend is influenced by the city's growing popularity, both among Italians and international buyers, and its proximity to Milan.

The ongoing improvements in infrastructure and accessibility to major transport hubs like the Milan Bergamo Airport also play a role in this upward trend.

Looking at future developments and city planning, there are always projects that could potentially impact property values. Any significant infrastructural improvements, new commercial developments, or enhancements in public services could make certain areas more attractive, thus driving up property prices.

Predicting the real estate market's trajectory in the coming years involves considering various factors. The continued appeal of Bergamo as a tourist destination, its growing reputation as a cultural hub, and the steady demand for property, especially in prime locations, all point towards a potentially positive trend in property values.

Specific factors that indicate a potential increase in value include the ongoing development of transport links, the city's attractiveness to expatriates and second-home buyers, and the limited availability of properties in the most desired areas, such as the Città Alta.

These elements, combined with the general appeal of living in a city that balances historical charm with modern amenities, suggest that Bergamo's real estate market may continue to see growth in the future.

Where is the best area to buy a property in Bergamo?

When considering the best area to buy a property in Bergamo, it's important to understand how the city's different parts vary in atmosphere, property types, and prices.

Each area has its unique charm and characteristics, making it more or less suitable for different buyers depending on their preferences and needs.

The most renowned part of Bergamo is the Città Alta (Upper City). This area is known for its rich history, stunning medieval architecture, and picturesque streets. The properties here are mostly historical buildings converted into apartments or houses.

The atmosphere is tranquil and distinctly Italian, with cobbled streets and beautiful views. However, because of its historical significance and popularity, property prices in the Città Alta tend to be higher.

This area is particularly appealing for those looking for a property with character and charm, and who are willing to invest more for the privilege of living in a historic center.

On the other hand, the Città Bassa (Lower City) offers a more contemporary living experience. This area is more modern and bustling, with a variety of property types including newer apartments and family homes.

The prices here are generally more affordable compared to the Città Alta. It's a great area for those who prefer a more urban lifestyle, with easier access to modern amenities and services.

For buyers interested in up-and-coming areas, certain neighborhoods in the Lower City are gaining popularity. Areas like Borgo Palazzo and Villaggio degli Sposi are becoming increasingly sought-after.

These neighborhoods offer a good balance between affordability and the convenience of living close to the city center. They are ideal for those looking for potential growth in property value.

When looking for a property, areas like Colli di Bergamo, which offer stunning views and a more residential setting, are also worth considering. This area is perfect for those seeking a quieter, more suburban environment, while still being close to the city's amenities.

Conversely, there are areas in Bergamo that might not be advisable for property investment, especially for those not familiar with the city.

Some outskirts of the city may not offer the same charm or convenience as the central areas and might not be as well-connected in terms of public transport.

Additionally, properties in these areas might not appreciate in value as much as those in more central or up-and-coming areas.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Italy.

Area	Atmosphere	Property Types	Price Range
Città Alta (Upper City)	Historical, tranquil, picturesque	Converted historical buildings, apartments, houses	Higher
Città Bassa (Lower City)	Modern, urban, bustling	Newer apartments, family homes	More affordable
Borgo Palazzo, Villaggio degli Sposi	Up-and-coming, residential	Variety of properties	Varies, generally good value
Colli di Bergamo	Quiet, residential, scenic views	Suburban homes, villas	Varies
Outskirts of the city	Less central, varied	Diverse types	Potentially lower, less appreciation

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Is there a strong rental demand in Bergamo?

Bergamo has a dynamic rental market that caters to a variety of needs, reflecting the city's diverse appeal.

Understanding the demand for rentals, whether it's more inclined towards short-term or long-term leases, is crucial for potential property investors or landlords.

In Bergamo, there's a significant demand for both short-term and long-term rentals, but the demand's nature varies across different parts of the city. The Città Alta (Upper City), with its historic charm and picturesque views, is particularly popular for short-term rentals.

Tourists and visitors often seek accommodations here for a few days to a few weeks, looking to immerse themselves in the city's rich history and culture.

On the other hand, the Città Bassa (Lower City) and its surrounding areas tend to attract more long-term tenants. These are often professionals working in Bergamo or nearby Milan, students attending local universities, and families preferring the convenience and modernity of the Lower City.

The growing expatriate community, drawn to Bergamo for work or lifestyle reasons, also contributes significantly to the long-term rental demand.

The profiles of potential tenants in Bergamo are diverse. For short-term rentals, tourists and short-stay visitors dominate the market. These tenants typically look for well-furnished, well-maintained properties that offer a taste of the local culture and easy access to major tourist attractions.

In contrast, long-term tenants, such as professionals and families, prioritize practicality and comfort. They often seek properties that are spacious, modern, and close to amenities like schools, parks, shopping centers, and public transportation.

Regarding the type of properties in demand, apartments in the historic Città Alta are highly sought after for short-term rentals due to their unique appeal.

For long-term rentals, apartments and family homes in the Città Bassa, especially in neighborhoods like Borgo Palazzo and Villaggio degli Sposi, are popular for their balance of urban convenience and affordability.

Amenities play a significant role in reducing vacancy rates. Properties offering high-speed internet, modern furnishings, and proximity to public transportation are more likely to attract and retain tenants.

Additionally, features like balconies, parking spaces, and access to green spaces can be particularly appealing for long-term residents.

The potential returns on investment in Bergamo's rental market can be quite promising. For short-term rentals, properties in the Città Alta can command higher rental prices due to their unique location and tourist appeal.

Long-term rental properties in the Città Bassa can offer stable returns, especially as demand from professionals and families remains consistent.

In terms of future trends, properties that cater to the growing demand for comfortable, convenient living spaces, like modern apartments in well-connected areas, are likely to see increased demand and potentially higher yields.

The evolving preferences of tenants, especially given the increasing remote work trends and the city's attractiveness to a diverse demographic, are key factors to consider when assessing the potential of the rental market in Bergamo.

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Is it easy to buy a property as foreigner in Bergamo?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Italy.

Buying a property in Bergamo, Lombardy as a foreigner can be a straightforward process, but it's important to be aware of the specific regulations, potential risks, and common pitfalls associated with property investment in Italy.

Firstly, there are no significant restrictions for foreign buyers in Italy. Buyers from both EU and non-EU countries are generally allowed to purchase property in Bergamo on the same terms as Italian citizens.

However, it's essential to be aware of any tax implications or visa requirements, especially for non-EU residents.

The property purchasing process in Bergamo follows the standard Italian procedure. It typically begins with the buyer making a formal offer and, if accepted, signing a preliminary contract (Compromesso) and paying a deposit.

This is followed by the due diligence process, where the property's legal status is verified. The final step is signing the deed of sale (Rogito) in front of a notary, at which point the balance of the purchase price is paid, and the property ownership is transferred.

One of the primary risks associated with property investment in Bergamo, as in other parts of Italy, is the potential for encountering legal complexities, especially related to property rights and building compliance.

It's not uncommon for properties, especially older ones, to have issues with unclear titles or unauthorized building works. Another risk is market liquidity – selling a property might take longer than in more fast-paced real estate markets.

Classic pitfalls or common mistakes often involve underestimating the total cost of the purchase, including taxes, notary fees, and real estate agent fees. A unique aspect to consider in Italy is the 'Codice Fiscale' (tax code) requirement.

Every buyer, including foreigners, must obtain this before purchasing property. Overlooking the need for renovations in older properties can lead to unexpected expenses.

Working with a local real estate agent or lawyer is highly recommended. They can provide valuable insights into the local market, help navigate the legal system, and ensure all documentation is correctly handled. A local expert is particularly crucial for understanding specific local practices and legal nuances in Bergamo.

Common exit strategies for property investors in Bergamo include selling the property for a profit or renting it out. The rental market can be attractive, especially if the property is in a desirable area.

However, it's important to be aware of the tax implications of rental income and potential capital gains tax on the sale of the property.