We recently explored why a luxury rental might be your next real estate investment; now let’s take a closer look at a country with a thriving luxury rental market and hear directly from our local area experts there.
Italy is a mix of culture, diverse landscapes, history, cities and places that have no equal in any country in the world. Renting a Villa in one of the most beautiful locations in Italy does not only mean staying in a beautiful property, but it is also the context in which they are located that makes spending a holiday or a long rental in Italy so special. From the north to the south, including the big and tiny islands, Italy has many different destinations to offer, each of them considered unique of its kind. We are joined by Lodovico Pignatti Morano, who along with his brother Clemente, are the managing partners of Italy Sotheby’s International Realty.
Sotheby’s International Realty (SIR): What are the benefits of owning a rental property in your country?
Lodovico Pignatti Morano (LPM): The benefits are actually many. [Rental] owners have the opportunity to stay at and rent these amazing properties, so that they are not only a wonderful place to enjoy a vacation, but also an important source of income that allows them to maintain the villas at high-quality standards, along with an effective gain in terms of liquidity, but that is not all. Keeping the properties in such excellent condition maintains their value over time and increases the profit linked to the villas and any future sales.
SIR: What trends are you seeing in your rental market?
LPM: Due to the global pandemic, the requests from international clients have decreased –– as we expected –– but many villas have nevertheless been rented by Italian customers.This means that when the quality [of the rental] is high, the investment always pays off. In fact, the demand for a short / medium term rentals have seen an exponential increase compared to the same period of 2019. This year, Italian customers make up nearly 85% [of renters], but there are also a few international clients: mostly Dutch, Swiss and Americans, all united by their keen interest in Italy.
SIR: How does the rental market drive business for your company?
LPM: The business of luxury rentals is not only linked to the possibility of earnings; many potential customers can evaluate the homes before buying them or making an offer [by renting first], and the market trend for the future is growing. We have really good expectations for 2021, as we are receiving a lot of requests for next year. There will probably be a slowdown, but after that they will rise again, as they did this year. Luxury rentals and the commercial network around it have an increasingly important value.
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