Italy, February/March 2004
"What's available in... Venice"
Although property is relatively scarce, with a bit of determination you can find your dream home, and make money renting it out, as Ann-Marie Doyle explains
Venice is the ultimate dream place to live – no cars, the most beautiful main street in the world, and palaces and churches at every turn. Walking is a necessity and a pleasure, and helps keep the Venetians fit right up to old age. Up until fairly recently it was a place which only the seriously affluent could think of buying into, with few properties available to either rent or buy. However in the last ten years there has been a dramatic change in the property scene. Changes in local laws have meant that more owners can rent legally to foreigners without being restricted to charging very low local rents, and with many Italians inheriting apartments in old palaces, renting has become the way forward in what is essentially a tourist-based city economy. The rental market has therefore grown dramatically over this period, with owners investing in restoration and refurbishment to ever higher standards. Although it is fair to say that the Venetian workman doesn’t have a very good reputation in our eyes, the reality is that the standard of workmanship in Venice is superb – it just seems to take twice as long as anywhere else!
THE BEST TIMES TO GO AND TO RENT
Venice is very much a city destination, so spring (April to June) and autumn (September and October) are the best times to go. July and August tend to be hot and humid, although personally I think that if you can take the heat Venice is a great place to be in high summer, especially if you like messing around in boats and enjoy sunbathing at the Lido. The beginning of September sees a huge influx of stars for the Film Festival, so if the idea of rubbing shoulders with Richard Gere at the Cipriani grabs you, then that’s the time to go. Christmas and New Year are quieter than in England (an excellent reason to go at that time of year), and Carnevale in February is a ‘must do’ for everyone at least once in their lives. From March onwards Venice fills with visitors again…
All this means that from a rental investment point of view there are few really low periods, these being from November until Christmas, January until Carnevale (mid February) and, of course, July and August. But remember that if you are hoping to get a really good return on your investment then you will need to leave your property free for rent during the best periods. Our agency won’t take properties on unless they are available at the best times, although we try to be lenient if an owner wants a couple of weeks here and there!
WHAT TO BUY
The availability of cheaper air travel has led to a dramatic increase in visitors every year, and with high hotel and restaurant prices, Venice is still considered a expensive/luxury destination. This is why more and more people are attracted to the idea of renting private properties rather than booking into hotels: the freedom of your own front door key; the extra space, very often with a courtyard or terrace; and the saving in being able to cook for yourself make taking an apartment an attractive and cost-effective option. So from an investment point of view the rental market, although obviously quite badly affected by the events of September 11, is still a good proposition. Because Venice cannot ‘grow’ in any direction, it seems that the demand will always outstrip supply. But be aware also that the travelling public is much more sophisticated and demanding than before, and clients are looking for an increasingly higher standard of properties to rent. Our agency is offered many properties by owners keen to be ‘on our books’, but we only take on those properties which have unique features, a high standard of bathrooms and kitchens, and usually outside space.
Even if you can’t persuade us to take on your dream home, there are many other ways of renting successfully privately: through friends, private ads, and internet sites. If you are planning to rent your property out then having a terrace or garden is more important than being in a ‘good’ location. Properties with picturesque courtyards will always score better than apartments with no outside space, even if they are right in the San Marco area. The rental market is almost completely based on holiday use, so outside space is becoming a pre-requisite. If you want to get the best return on your investment, buy something which has unique features and which looks good in pictures.
WHERE TO LOOK
So how do you find your dream home? The real estate market is very active in Venice and, unlike the rental market, was largely unaffected by September 11. Space is at a premium, the historic centre is tiny, and therefore there is heavy competition at the bottom end of the market for small properties, especially ones which have been already restored. There simply aren’t many properties available, and so inevitably prices go up and competition to secure is fierce, but not impossible!
With a bit of determination and good local market research you really can find the property of your dreams. The city is divided into six main areas (the ‘sestieri’ of Venice) but the first rule of property-buying in Venice is not to get hung up on one specific area. Many people say that Dorsoduro is the ‘Mayfair’ of Venice, and of course Dorsoduro is very pretty, but in reality it’s much better to look around areas such as Santa Croce, where the original University was founded in the 14th century, or Arsenale where the original shipyards are (now all Grade 1 listed building) and which is still very much a local area with interesting small shops and cafes, and washing lines, which the Venetian Borghesi hate, but which I still love to see.)
The most up-and-coming area is Giudecca, the island just across from San Marco and Dorsoduro, where the Cipriani is, and where Elton John recently bought a waterfront home. The Giudecca is an interesting area – a mixture of the luxurious and the ordinary, where local residents now rub shoulders with the influx of people buying into the fantastic new waterside developments which have come up for sale in the last two years at Judeca Nova. Foreign buyers who bought there last year have already seen their capital investment appreciate dramatically. The second phase, which will be completed in April 2004, is mostly sold, although there are still some smaller properties available. The advantages of these properties are obvious – no restoration work to do, fabulous Italian design, and virtually ready to move into. Prices are also considerably lower per sq.metre than in central Venice. Within a couple of years the Giudecca will have really taken off as a great holiday destination within Venice, the views are spectacular back over towards San Marco and you are also away from the tourist crowds. Indeed we are just about to start marketing the last and only totally private gated development on Giudecca – Zuecca Uno – which will be completed in March 2005. There are 16 apartments for sale in a waterfront development just close to the Cipriani, with three apartments having private water frontage and moorings. A fitness centre is planned.
PRICES
Prices are, of course, very high in Venice, don’t expect to find anything for less than €300,000 (about £210,000) with really nice properties coming in at around €500,000 euro plus (about £350,000), with many properties needing some restoration or refurbishment. If the Grand Canal is to your taste then expect to pay between €6–€8 million (£4–£6 million) for a piano nobile property. Prices on the island of Giudecca in new developments are proportionally much better value, and apartments are ready to move into. If you are interested in renting out then don’t even think of looking on the mainland outside Venice- you’ll never get any takers!
Prices in Venice never go down, so buying there represents an excellent capital investment. If you buy the right property the rental return is good, with some apartments renting for up to 30 weeks a year. But if you are buying in central Venice, perhaps into a divine 15th century palazzo, you must take into consideration the ongoing maintenance and condominium costs, old palaces need constant attention and costs are shared between the residents.
Buying in Venice proper is not for the faint-hearted, but if you do a lot of research, really study the market, and don’t let your heart rule your head, you can find the perfect place which will give you a good return, which will continue to appreciate in value, and which will allow you to enjoy Venice in the quieter times. Perfetto!
You can see this
article in Italy, February 2004.
www.italymag.co.uk