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Yes, the analysis of Venice's property market is included in our pack
Considering investing in real estate in Venice? You're not alone!
Many people are fascinated by Venice's romantic ambiance and dream of owning a canal-side palazzo or a cozy apartment there.
Still, would it be a smart investment? Are property prices increasing in Venice? What is the current trend? Should you consider buying in San Marco or Dorsoduro? What are the property taxes? Which place will give me the best yields?
We know the answers.
The Investropa team has done their homework on this market. Actually, we've put all our findings together in a pack. Get it now.
In this article, we'll provide you with helpful information.
How is the property market in Venice?
What's the current state of the property market? Data will give us the insights we need.
Property types
In Venice, there are various types of properties available for sale, catering to different preferences and needs.
These include charming historic apartments nestled within the enchanting alleys and canals, offering a taste of the city's rich heritage and culture. Additionally, modern condominiums and townhouses with contemporary amenities are also on the market, providing a more comfortable and convenient living experience.
For those seeking a tranquil retreat, there are beautiful waterfront villas with stunning views of the lagoon, offering a serene and picturesque setting.
Whether you're drawn to the city's historical charm, contemporary comforts, or serene waterfront living, Venice offers a diverse array of properties for sale to suit any individual's taste and lifestyle.
Buy or rent?
(If you're buying for yourself and not to rent out)
If Venice has captured your heart as your city of choice, you might be considering whether it's better to buy a property or opt for renting in this unique Italian floating city.
Generally, buying is a better choice than renting in Venice due to the city's unique housing market and high demand for property.
That said, renting provides the advantage of flexibility for those who want it.
Property prices in Venice
On average, according to the last data from National Institute of Statistics (ISTAT), purchasing a property in Venice would cost you around $3,800 per square meter.
Naturally, prices are quite spread out. A canal-side property in Venice might have a different price per square meter than an apartment in Dorsoduro. We actually give you a more detailed breakdown in our pack for buying property in Venice and in Italy.
To give you a better idea, it means that, instead of purchasing a flat in Manhattan, you can become the owner of 4 properties in Venice.
Also, housing prices in Venice are 27% cheaper than inhttps://investropa.com/blogs/news/venice-propertyFlorence.
The most expensive neighbourhoods in Venice are probably San Marco and Castello, while the cheapest are likely Cannaregio and Santa Croce.
Trends
First and foremost, we have to acknowledge that Italy remains, today, a very stable country. The last Fragile State Index that has been reported for this place is 43.4.
Don't ignore this when considering the pros and cons of buying a property in Venice.
Also, according to the International Monetary Fund, Italy's economy is expected to soar by 4.8% in the coming 5 years, resulting in an average GDP growth rate of 1% (it's not much).
If you intend to invest in real estate in Venice it's a good thing because rising prosperity among individuals signals a probable upturn in housing prices.
Also, in Italy, the average GDP per capita has changed by 4.1% over the last 5 years. The growth, although minimal, is still present.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Italy right now.
Buying property in Venice
It can be difficult to buy property in Venice due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Venice and in Italy.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Venice:
- Familiarize yourself with local property laws and regulations.
- Hire a reputable real estate agent familiar with Venice's unique market.
- Choose a property and negotiate the price, considering Venice's distinct canal-side locations.
- Sign a preliminary sales agreement (compromesso) and pay a deposit (caparra) to secure the deal.
- Conduct due diligence, including verifying the property's historical status and compliance with preservation regulations.
- Finalize the notary deed (rogito) with the presence of a notary and all involved parties.
- Obtain necessary permits, such as the Permesso di Costruire (building permit) for renovations.
- Pay the balance and relevant taxes, like the Imposta di Registro (registration tax).
- Register the property with the land registry (Catasto).
- Transfer utility contracts to your name and update ownership details.
- Comply with the Acque Venezia water usage tax, specific to Venice's water-based infrastructure.
- Congratulations, you now own a property in beautiful Venice!
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Italy.
Make a profitable investment in Venice
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Where to find a property
Discover properties in Venice through these websites:
- Immobiliare - Italy's leading real estate portal, featuring an innovative platform for property listings and searches.
- Green-Acres - Europe's top platform for second homes, offering a wide array of properties for sale in Italy and other countries.
- Immobiliare Italiano - Offering a diverse range of Italian real estate and luxury properties for sale, catering to various preferences and budgets.
- Houses of Italy - A licensed real estate agency providing a variety of properties for sale across different regions of Italy.
- Italian Houses for Sale - A property website offering a broad selection of properties for sale in various Italian regions, connecting clients with professional agents.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Italy.
What you can get
As mentioned before, the average price per sqm in Venice is $3,800. A 1-bedroom property with 60 square meters would cost approximately $228,000, and a 2-bedroom property with 85 square meters would cost approximately $323,000.
However, prices will change based on both the property itself and its location.
You can expect prices to be steeper in the upscale parts of Venice. A house in San Marco might be around $720,000, and a house in Dorsoduro could be priced at $670,000.
Certain locations are not as costly. You may find an apartment in Marghera for $130,000, or you could discover one in San Donà di Piave priced only at $100,000.
Find a more detailed price list in our full pack for buying property in Italy.
Common mistakes
Here are the main pitfalls when buying property in Venice, Italy:
- Acqua Alta: High water levels and frequent floods can damage properties and require costly preventive measures.
- Conservation Regulations: Strict rules for restoring historic buildings can limit design choices and increase expenses.
- Lagoon Subsidence: The city's foundation settling can cause structural issues over time.
- Limited Availability: Limited property options in the city's central and sought-after areas.
- Heritage Maintenance: Historic buildings require special care and maintenance, leading to higher costs.
- Over-tourism Impact: Tourism may affect the peace and privacy of living in certain areas.
- Short-term Rental Restrictions: Regulations on renting properties for short stays may impact potential income.
- IMU Tax: Non-resident buyers may face higher property taxes and fees.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Italy Property Pack
Living in Venice
Living in Venice is a unique experience, with its canals, picturesque architecture, and vibrant culture, making it an ideal place to purchase property.
Cost of living
The cost of living in Venice is generally high due to the city's popularity as a tourist destination. Prices for basic necessities such as groceries and rent are significantly higher than in other parts of Italy.
Here are some examples to better understand the cost of living in Venice:
- Monthly rent for a charming apartment in the historic Dorsoduro neighborhood: €1,200-€2,500.
- A glass of local Venetian Prosecco at a traditional bacaro (wine bar): €3-€6.
- Vaporetto (water bus) monthly pass for public transportation: €35-€50.
- A plate of traditional Venetian cicchetti at a local osteria: €10-€15.
- Admission to Doge's Palace and the Bridge of Sighs: €20-€25.
- Monthly membership at a Venice-based fitness studio or yoga studio: €40-€80.
- Fresh seafood from the Rialto Market for a week: €30-€50.
- A bottle of local Venetian wine (e.g., Valpolicella or Amarone) from a wine shop: €10-€20.
Neighbourhoods
Since we aim to make information easy to understand, we've created a summary table outlining the different neighborhoods in Venice. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Cannaregio | Cannaregio is a historic neighborhood known for its lively atmosphere, with bustling streets and a wide range of dining and shopping options. | Rich cultural heritage, great dining scene, well-connected by public transport. | Can get crowded with tourists, some areas might be noisy. |
Dorsoduro | Dorsoduro is a charming district filled with art galleries, beautiful architecture, and a more relaxed vibe, popular among students and artists. | Artistic ambiance, scenic views, home to some famous landmarks like the Accademia Gallery. | Limited public transport options, fewer shopping opportunities. |
San Marco | San Marco is the heart of Venice, featuring the iconic St. Mark's Square and numerous historic sites, attracting tourists from all over the world. | Historical significance, stunning architecture, vibrant nightlife. | Can be extremely crowded, expensive tourist-centric prices. |
Castello | Castello is the largest and most varied sestiere in Venice, encompassing both popular tourist spots and quiet residential areas. | Diverse neighborhoods, local markets, proximity to major landmarks. | Some areas can feel less safe at night, limited dining options in certain parts. |
San Polo | San Polo is a lively neighborhood known for the Rialto Bridge, bustling markets, and charming squares. | Authentic Venetian experience, bustling markets, close-knit community. | Narrow streets can feel congested, limited green spaces. |
Santa Croce | Santa Croce is a less touristy area with narrow streets, local shops, and a more authentic Venetian atmosphere. | Local charm, peaceful ambiance, close to transportation hubs. | Limited tourist attractions, fewer restaurants and cafes. |
Giudecca | Giudecca is an island located south of Venice, offering great views of the city and a quieter, residential setting. | Stunning views, serene environment, more affordable housing options. | Limited public transport, fewer entertainment venues. |
Lido di Venezia | Lido di Venezia is a long, narrow island known for its beaches and hosting the Venice Film Festival. | Beautiful beaches, vibrant cultural events, peaceful atmosphere. | Can be crowded during the film festival, limited shopping and dining options. |
Murano | Murano is famous for its glassmaking industry, and visitors can explore glass factories and museums. | Unique glass craftsmanship, charming canals, quieter than central Venice. | Some areas cater mainly to tourists, limited nightlife. |
Burano | Burano is known for its colorful houses, lace-making tradition, and a tranquil atmosphere. | Picturesque scenery, artistic heritage, peaceful island life. | Limited public transport, fewer amenities compared to central Venice. |
Torcello | Torcello is a quiet island with ancient historical sites, including the Cathedral of Santa Maria Assunta. | Historical significance, serene environment, ideal for nature lovers. | Minimal tourist facilities, limited dining options. |
San Michele | San Michele is a small island in the Venetian Lagoon, housing the cemetery of Venice. | Peaceful, historic cemetery, unique burial site for notable figures. | Limited activities, primarily a burial ground. |
Marghera | Marghera is a mainland industrial area near Venice, providing a more affordable living option for locals. | Lower cost of living, well-connected to Venice by public transport. | Industrial landscape, fewer amenities, not as picturesque as central Venice. |
Favaro Veneto | Favaro Veneto is a residential neighborhood on the mainland, offering a quieter environment away from the tourist hustle. | Peaceful living, local community, convenient access to the airport. | Limited tourist attractions, fewer entertainment options. |
Mestre | Mestre is a large urban area on the mainland, serving as the gateway to Venice with its major transportation hub. | Excellent transport links, affordable accommodation, diverse dining choices. | Lacks the charm of central Venice, less historical significance. |
Life in Venice
The economy of Venice is largely driven by tourism, as the city is a popular destination for both domestic and international travelers. The city also has a strong industrial base, with many businesses specializing in shipbuilding, engineering, and finance.
What expats usually like the most about Venice is its unique atmosphere and the canals, which give the city a romantic and peaceful vibe. They also appreciate the city's rich history and art, as well as its many traditional restaurants and cafes.
Access to healthcare in Venice is generally good, with a variety of public and private hospitals and clinics providing quality healthcare services.
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Renting out in Venice
This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.
Long-term
Tenant Profiles in Venice
According to the data reported by Wikipedia, the home ownership rate in Italy is 74%, which is average.
It means that, if you decide to buy and rent out in Venice, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target young professionals, families, and students, as well as those looking for a seasonal or holiday rental. Short-term tenants can include tourists, business travelers, and those looking for a place to stay for a special event.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Studio in San Marco | Tourists, short-term renters | Central location, tourist attractions | $1,000 - $2,000 |
1-Bedroom Apartment in Dorsoduro | Students, artists | Art scene, universities | $1,200 - $2,500 |
2-Bedroom Flat in Cannaregio | Young professionals, couples | Residential area, local vibe | $1,500 - $3,000 |
Apartment in Castello | Residents seeking authenticity | Historic district, cultural experience | $1,000 - $2,000 |
3-Bedroom House in Giudecca | Families, professionals | Quiet island living, schools | $2,000 - $4,000 |
Apartment in San Polo | Young professionals | Cafes, local shops | $1,200 - $2,500 |
1-Bedroom Flat in Santa Croce | Students, young professionals | University proximity, transit | $1,000 - $2,000 |
Rental yields
Nowadays, Venice offers some opportunities in terms of rental yields. Actually, you can easily achieve 7 or 8% due to the high demand for short-term rentals in the city.
The best rental yields in Venice are typically found in properties close to the Grand Canal, as they are highly sought after by tourists for their convenient location and stunning views. Additionally, properties in the city's most popular neighborhoods such as San Marco and Cannaregio tend to have higher rental yields due to their vibrant atmosphere and abundance of attractions.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Venice are taxed at 21%, which is not bad.
Short-term
You could also decide to rent short-term to tourists visiting Venice for a short stay, or to business travelers in town for a short period of time. Additionally, you could rent short-term to students studying abroad or attending conferences in Venice.
If you decide to go with that option, look for properties in San Marco, Cannaregio, and Castello, as these are the most popular areas for short-term rentals. Santa Croce and Dorsoduro are also good areas to consider.
Currently, there are approximately 9,000 active Airbnb listings in Venice, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $187, which is quite high.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Venice can make around $3800 per month. Also, the average occupancy rate is estimated at 87%.
Is it worth buying real estate in Venice then?
Buying property in Venice can be a fantastic idea if you're captivated by its unique charm and culture, planning for the long term, and ready to embrace the city's distinct lifestyle. Venice offers a one-of-a-kind experience with its canals, historic architecture, and vibrant atmosphere. If you want to live in a place that feels like a living museum, this is it. Plus, Venice's stable economy, expected GDP growth, and the potential for property appreciation make it a smart investment choice.
The city also presents opportunities for rental income, especially in popular areas like San Marco and Cannaregio, with some properties generating rental yields of 7-8%. So, if you're looking for an investment that combines cultural richness with financial potential, Venice is worth considering.
However, it's not the right move for everyone. If you're seeking a quick return on investment or plan to focus solely on short-term rentals, Venice may not align with your goals due to high competition and regulations impacting rental income. Over-tourism can also be a downside, with crowded streets during peak seasons, potentially compromising your peace and privacy.
Moreover, Venice's strict conservation regulations may limit your design choices and add to renovation costs, which could be a concern if you value flexibility in property renovations. Additionally, factors like acqua alta (high water levels), structural issues, and the higher cost of living in Venice need to be carefully considered.
Ultimately, buying property in Venice is a decision that hinges on your lifestyle preferences, long-term goals, and willingness to navigate the city's unique challenges and opportunities.
Make sure you understand the real estate market in Venice
Don't rush into buying the wrong property in Italy. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.