Lake Como Property Market: A Look Back at 2020, And Predictions For 2021
© Lakeside
As 2020 draws to a close, here’s a look at the year that was in real estate here at Lake Como, Italy - and a preview of what to keep an eye on in 2021 according to our Managing Director Sara Zanotta.
A look back at 2020
After the first months of the emergency, that have been obviously tough for everyone, from July Lake Como property market has undergone a real boom. We had international clients - unable to fly to Italy but still willing to find a property in our region - buying properties from abroad with virtual tours.
A pleasant news which emerged in the months that followed the first lockdown in Italy, was the return of Italians to purchase second homes, intended both for personal use and as a source of income. The proximity of the lake to the big cities, especially Milan, has led to a good induced activity in recent months: compared to the same date in 2019, the increase in Italian customers to date has seen an increase of + 45% (source: Lakeside internal data).
Many of the stalled properties on the market have been sold after the first lockdown within a few months: we’ve reached an encouraging point where demand exceeds supply.
Prices have been relatively steady along the year: we registered an increase (+4/5%) only in certain prime locations along the coast.
2021 OUTLOOK
Image via Mashvisor
Increasingly more international remote workers coming to Lake Como
The real estate market at Lake Como has been on fire this 2020, thanks to low mortgages rates together with an "international" local relocation made possible by the new smart working trend.
Specifically, there’s been a huge increase in demand for properties with larger sizes: remote workers, moving to Lake Como with their whole family, need a property able to combine the family space (in particular outside spaces) with a more private space for working. Now of course everybody wants a space to work from home that isn’t their bedroom or the kitchen table.
Image via Swica.ch
For the first time worldwide people now have a new vision of their house, seen as a shelter against pandemic, a place where one can do everything: work and enjoy its family time all in the same place.
Low mortgages rates and increasingly more investments
Mortgages rates can be expected to remain quite low at least for the next full year, keeping Lake Como real estate market stronger and interesting for certain investments' portfolios.
The Covid emergency hasn’t been able to curb the investment race on Lake Como: this still holds an excellent position of strength despite the difficult context the economy is experiencing.
The dynamic is quite simple: Covid has made investments in the stock market less desirable, and foreign investors have begun to reconsider operations in the real estate world, the most favored among long-term investments.
A property at Lake Como therefore remains the preferred investment not only for its duration, but also for the potential increase in value, return and hedging against any risk of inflation.
When it comes to real estate investments, the factors that are most sought after by our international clients are stability, security and opportunity: and these are exactly the attributes that are recognized abroad on Lake Como.
Foreign investors are not necessarily aiming for "easy bargains", and they haven’t done so even in this pandemic period; what they’re looking for is always a reasonable and predictable rate of return over the long term, as well as the guarantee of steady or increasing future income flows. These scenarios are most easily applied to high quality properties, favored by the vast majority of investors. Among which, however, there are also those with consolidated portfolios that also take into consideration higher risk initiatives, such as renovation or conversion projects. An example above all is the project we're carrying out in Tremezzina, Azzano di Mezzegra: the reconversion of a lake area in complete decay for several years, soon transformed into a 5-star luxury hotel with many benefits for the entire local community.
A new boost to renovations thanks to the new fiscal benefits from the Italian State
Another positive pressure on the real estate market will be the new fiscal benefits given by the Italian State increasing the building field of renovations' enquiry.
The Superbonus 110% (the so called "Decreto Rilancio") has been converted into Law with the aim of helping the Italian economy in response to Covid-19. This bonus is intended to cover 110% of the cost of energy efficiency works carried out to the property.
This is quite interesting as it speeds up the request of properties in need of huge renovations. The enquiries for this kind of properties will increase in 2021 for at least up to 45%. From July 2020 to December 2020 these requests increased up to 32% than the same period in 2019 (source: Lakeside internal data).
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