Is buying a property in Lucca's historic center a good investment?

Last updated on December 29, 2023

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

If you've appreciated the medieval charm and historical significance of Lucca's Historic Center, you might contemplate making this Tuscan town 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 Lucca's historic center?

Lucca's historic center stands out as a highly sought-after location for property buyers, thanks to its unique blend of historical charm, cultural richness, and modern amenities.

This area, nestled within the ancient walls of Lucca, offers a distinct experience compared to other real estate markets, primarily due to its preserved medieval architecture, narrow winding streets, and the famous Renaissance walls that encircle the town.

These features provide a sense of stepping back in time, something you don't often find in more modernized urban areas.

Interestingly, Lucca's historic center began to gain popularity among property buyers around the early 2000s. This surge in interest was partly due to global trends in real estate where buyers started valuing cultural and historical significance as much as the property itself.

The trend has shown resilience, suggesting that Lucca's appeal is more than just a passing hype. The enduring interest can be attributed to the area's ability to balance historical preservation with modern living.

For example, while you may find yourself in a 15th-century building, it's likely to have been meticulously renovated to include contemporary comforts.

The type of people attracted to Lucca's historic center is quite diverse. It appeals to history enthusiasts, cultural aficionados, and those seeking a quieter lifestyle away from the hustle and bustle of big cities.

The area is also popular among retirees and expatriates who are drawn to its relaxed pace of life and rich cultural tapestry. It's not uncommon to find artists, writers, and scholars among the residents, all drawn by Lucca's inspiring atmosphere.

However, despite its many attractions, Lucca's historic center does have some drawbacks. The very features that give it charm, like narrow streets and ancient buildings, can pose challenges.

These include limited parking and modern infrastructure, which might not meet the expectations of someone used to more contemporary urban living.

Additionally, the maintenance of historic properties can be more demanding and costly compared to newer constructions.

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Why is Lucca's historic center a nice place to live?

Living in Lucca's historic center is like stepping into a beautifully preserved slice of history, where the charm of the past seamlessly intertwines with the conveniences of modern life.

The lifestyle here is characterized by a relaxed, culturally rich atmosphere. Picture strolling along cobblestone streets, surrounded by medieval architecture, and taking in the beauty of centuries-old churches and plazas. It’s a place where the pace of life slows down, allowing residents to savor each moment.

The culture in Lucca is deeply rooted in Italian traditions. You'll find a strong sense of community, with local festivals and events that bring people together.

The historic center is a hub for arts and music, famously hosting the Lucca Summer Festival and the Lucca Comics & Games event, drawing visitors from all over the world.

For expatriates, Lucca offers a welcoming environment. The expat community here, while not as large as in some other Italian cities, is vibrant and friendly. Many expats are drawn to Lucca for its quality of life and end up staying for the strong sense of community.

When it comes to cost of living, Lucca's historic center can be more expensive than other parts of Italy, but it generally offers good value for the quality of life it provides.

Property prices and daily living expenses tend to be higher here, reflecting the area's desirability and the premium of living in a historic location.

Safety is one of Lucca's strong suits. The historic center, like much of the city, is known for being safe and peaceful. It’s a place where people feel comfortable walking at night, and crime rates are relatively low compared to larger cities.

In terms of amenities and facilities, Lucca's historic center is well-equipped. For healthcare, there's the San Luca Hospital, providing a range of medical services.

Schools in the area, such as the Liceo Classico Niccolò Machiavelli, cater to different educational needs. For shopping, the Via Fillungo is the main shopping street, lined with boutiques, cafes, and artisanal shops.

The infrastructure in Lucca is a blend of old and new. While the roads in the historic center are often narrow and more suited to pedestrian and bicycle traffic, they add to the area’s charm.

Utilities and services like electricity and water are reliable, and internet connectivity is generally good, meeting the needs of both residents and the remote working community.

Accessibility is another perk of living in Lucca's historic center. The area is well connected to other parts of the city and beyond. It's easy to venture outside the city walls by car or public transport.

Lucca’s train station, just outside the city walls, provides convenient connections to major cities like Florence and Pisa, and the nearby Pisa International Airport is within easy reach.

Public transportation options within Lucca include buses and a bike-sharing system. These modes of transport make it easy to navigate the city, especially given the limited parking within the historic center.

How much does it cost to buy real estate in Lucca's historic center?

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.

Buying a property in Lucca's historic center can be a unique investment, offering a blend of cultural richness and historical charm.

The types of residential properties available in this area vary, including apartments, traditional houses, and occasionally, luxury villas. These properties often feature distinctive architectural elements like terracotta floors, frescoed walls, and exposed wooden beams, adding to their allure.

Apartments, especially those in restored historic buildings, are in high demand in Lucca's historic center. They appeal to buyers who appreciate the blend of old-world charm and modern amenities.

Houses, often characterized by their rustic Tuscan style, also attract a fair share of interest, particularly from those looking for more space or a more authentic Italian living experience.

In terms of property availability, Lucca's historic center is predominantly composed of resale properties, given its historical nature. New developments are relatively rare, as the area's heritage status means that any new construction or significant alteration to existing buildings is strictly regulated to preserve its historical integrity.

The price range for properties in Lucca's historic center can vary widely depending on factors like size, condition, and exact location. On average, prices per square meter can range from around €3,000 to €5,000 or more for highly sought-after properties.

These figures can fluctuate based on the unique characteristics of each property, as homes in Lucca's historic center are often one-of-a-kind.

Over recent years, property values in Lucca's historic center have shown a steady increase. This trend is driven by the area's enduring appeal to both domestic and international buyers who are attracted by the lifestyle and investment potential offered by historic properties.

Looking ahead, the real estate market in Lucca's historic center is expected to remain robust. There aren't any significant upcoming developments or city planning changes on the horizon that are likely to drastically alter the market.

However, minor enhancements to infrastructure and amenities could potentially boost property values.

Several factors indicate a potential increase in property values in Lucca's historic center. The area's limited supply of properties, coupled with its historical significance and enduring appeal to a niche market, supports a positive outlook.

Additionally, as more people seek properties with character and history, Lucca's historic center stands out as an attractive option.

Where is the best area to buy a property in Lucca's historic center?

When considering the best area to buy a property in Lucca's historic center, it's important to understand that each part of this ancient city offers its unique charm and characteristics.

The atmosphere, property types, and prices can vary significantly across different areas within the historic center.

One of the most coveted areas in Lucca's historic center is around Piazza Anfiteatro. This area is known for its picturesque setting, where properties often overlook the unique oval piazza. The atmosphere here is vibrant and lively, filled with cafes and shops.

The properties in this area are typically traditional apartments in historic buildings, and because of the desirable location, they tend to be on the higher end of the price spectrum.

Another sought-after area is along Via Fillungo, the main shopping street. This area offers a bustling urban lifestyle, with easy access to a variety of shops, restaurants, and bars.

Properties here are also mainly apartments, often with beautiful views of the medieval streets. Prices in this area are quite high due to the central location and the historical significance of the buildings.

For those looking for a quieter, more residential atmosphere, the area near the Basilica of San Frediano and around the Guinigi Tower can be a great choice. This part of the historic center is more tranquil yet still offers the charm and character typical of Lucca.

The properties here are a mix of apartments and smaller townhouses, and the prices can be more moderate compared to the more bustling areas.

As for up-and-coming areas within Lucca's historic center, the area near the city walls, particularly the stretch near Porta Elisa, is gaining popularity. This area offers a blend of residential calmness and accessibility to the city's amenities.

It's becoming increasingly sought after, particularly among buyers who are looking for a balance between tranquility and urban living.

On the contrary, certain areas might be less advisable for some buyers. For instance, areas that are too close to busy tourist attractions might not appeal to those looking for a more authentic, everyday living experience.

These areas can get crowded, especially during peak tourist seasons, which might detract from the charm of living in Lucca's historic center.

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
Piazza Anfiteatro	Vibrant, picturesque	Traditional apartments in historic buildings	High
Via Fillungo	Bustling, urban	Apartments with city views	High
Near Basilica of San Frediano and Guinigi Tower	Tranquil, residential	Mix of apartments and townhouses	Moderate
Near Porta Elisa and City Walls	Emerging, balanced	Varied, with potential for new developments	Varies, potential for growth

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Is there a strong rental demand in Lucca's historic center?

Lucca's historic center known for its enchanting atmosphere and rich cultural heritage, does experience a strong demand for rental properties.

However, the nature of this demand tends to vary between short-term and long-term rentals, each catering to different demographics and preferences.

Starting with short-term rentals, they are particularly popular in this area, driven mainly by tourism. Lucca's historic center, with its well-preserved medieval streets, Renaissance walls, and vibrant cultural scene, attracts a considerable number of tourists year-round.

The target demographic for short-term rentals includes vacationers, cultural enthusiasts, and attendees of various festivals and events that Lucca hosts. These tenants typically look for properties that offer a blend of historical charm and modern amenities.

Apartments in central locations, especially near major attractions like Piazza Anfiteatro or along Via Fillungo, are highly sought after.

Tourists often prefer accommodations that provide a comfortable and authentic Luccan experience, so properties with traditional features like terracotta floors, exposed beams, and frescoed walls are in demand.

On the other hand, there's also a market for long-term rentals, though it's somewhat less pronounced than the short-term segment. Long-term tenants usually include expatriates, professionals working in or near Lucca, and sometimes students. These renters tend to look for properties that offer a balance between historical charm and practical living.

Areas near essential amenities like supermarkets, schools, and public transport links are preferred. For long-term rentals, properties in quieter parts of the historic center, such as near the Basilica of San Frediano or the area around the Guinigi Tower, can be attractive.

In terms of amenities that can help reduce vacancy rates, features like modern kitchens and bathrooms, air conditioning, reliable internet, and perhaps a small outdoor space can be particularly appealing.

For short-term rentals, providing furnished properties with all necessary conveniences can significantly increase attractiveness.

Speaking of potential returns on investment, properties in Lucca's historic center can offer attractive rental yields, especially with short-term rentals due to the higher per-night rates. Estimations of rental yields vary, but properties in prime locations with desirable features might see higher returns.

For instance, well-maintained apartments in central locations can command strong rental prices both for short and long-term leases.

Looking into the future, properties that cater to the growing trend of remote working could see increased demand. Apartments with dedicated workspaces or extra rooms that can be converted into home offices could potentially provide better yields.

The global shift towards more flexible working arrangements means that there could be a rising number of professionals looking for properties that can accommodate both living and working comfortably.

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Is it easy to buy a property as foreigner in Lucca's historic center?

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 property as a foreigner in Lucca's historic center, like in many parts of Italy is relatively straightforward, but there are certain nuances and considerations that should be kept in mind.

Firstly, there are no specific regulations or restrictions on foreign buyers in Italy. People from outside Italy can purchase property much like Italian citizens. It's crucial to be aware of the legal and administrative processes involved, which can be complex.

The purchasing process typically involves several key steps. After finding a property, you make an offer through a real estate agent. Once the offer is accepted, a preliminary contract (Compromesso) is signed, and a deposit (usually around 10-20% of the purchase price) is paid.

The final contract (Rogito) is then signed in front of a notary, and the remainder of the purchase price is paid. This process also includes various checks on the property, such as ensuring there are no outstanding mortgages or debts.

One of the primary risks associated with property investment in Lucca's historic center is the condition of the property. Many buildings are old and may require significant maintenance or renovation.

It's essential to conduct a thorough inspection and possibly consult with architects or engineers, especially if you plan on renovating.

A classic pitfall for foreign buyers in Italy is underestimating the importance of bureaucracy. The property buying process involves various legal documents, all of which are in Italian. It's not uncommon for foreign buyers to overlook certain administrative details, which can lead to complications later.

Additionally, understanding the tax implications both at the time of purchase and during ownership is crucial.

Working with a local real estate agent and a lawyer is highly recommended. A local agent will have a better understanding of the Lucca property market, including pricing and the best areas to invest in.

A lawyer, on the other hand, can help navigate the legal complexities of the purchase process. They ensure that all the paperwork is in order, which is crucial in avoiding potential legal issues.

As for exit strategies, property investors in Lucca's historic center usually consider either selling the property at a higher value later or renting it out, either as a short-term vacation rental or a long-term lease.

Given Lucca's appeal as a tourist destination, short-term rentals can be particularly lucrative, but they do require more active management.