Political Uncertainty a Concern for the Italian Property Market

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Political Uncertainty a Concern for the Italian Property Market

April 28, 2017

 Should you buy or sell property in Italy online keeping in mind the political instability in the country? Politics dominate all discussions in Italy and the property market is not immune from the feverish debate in the country over its future in the European Union either.

Indeed, there is a climate of political uncertainty in Italy because of the rise of Eurosceptics such as the Five Star Movement, which wants the country to leave the European Union. The Fiver Star Movement showed how much of a political force it was in the recent referendum called by the former Prime Minister Matteo Renzi.

Renzi’s humiliating loss in the referendum forced him to quit from his position as the Prime Minister. Italy has been pushed to the brink because of Renzi’s resignation and now have a new Prime Minister, who does not have the same authority as Renzi did and is seen as a stop-gap measure before the new general election.

There is a fear that there is too much politics in Italy and that people are not only disillusioned with the traditional political parties, they are also keen to follow Britain’s example and have their own version of Brexit. The Five Star Movement and other far right political forces in Italy are getting a lot of traction and there is every reason to believe that they will do will in the forthcoming national election.

Italy’s Ambassador to the United States, Armando Varricchio, says there is no reason to worry as yet and is optimistic. He says, “We should never fear elections, because whenever people are active and want to be engaged and take responsibility by casting their vote, this is a positive sign that democracies work.”

Mr. Varricchio explains that the recent anger against globalist forces and the European Union in Italy is understandable given the circumstances in the country and that more democracy, not less is the answer: “[It] can be translated either in a more aggressive attitude — in the desire to protect your own world, be it your community or your country, trying to turn your back on this global phenomenon of the free movement of ideas, of religions, of goods — or it can translate into a will not to participate, not to be engaged. I think that it is always important to be able to give voice to these fears and also turn them into a positive flow that could be channeled within the existing democratic path.”   

 That’s probably true, but it cannot be denied that this is not a good time to be investing in the Italian property market at the moment because of all the political uncertainty. Even so, there are many sophisticated investors who have been betting big on Italy, as they think the real estate market here has bottomed out and things will only get better through 2017 and 2018.

 So, for many, this is the right time to buy property in Italy online despite the falling real estate prices. Home prices in Italy have declined by 1.4 percent in 2016. Experts say that the fall will continue but don’t expect anything drastic. While the situation in Italy is not perfect, it is certainly nothing like what we see in Greece. Italy remains a much fancied overseas property destination among rich, high net worth international investors.