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PROPERTY

Italian property prices continue to rise in 2022

The recent upward trend in Italian property prices continued in the first quarter of this year, the latest official data shows.

Italian property prices continue to rise in 2022
House prices continue to rise into 2022, a trend that began in 2019. Photo by Damien MEYER / AFP

Average property prices in Italy increased again in the first quarter of 2022, despite the soaring cost of living fuelled by high inflation.

Italian house prices rose by 1.7 percent compared to the previous quarter – a 4.6 percent rise compared to the same period last year, according to data from Italy’s national statistics institute Istat.

READ ALSO: Cost of living: How does Italy compare to the rest of the world in 2022?

The increase in prices covers both new properties and existing homes.

The cost of new homes rose by five percent, which marks a slight slowing down of growth from the 5.3 percent increase in the previous quarter.

Homes already on the market, which account for 80 percent of those included in Istat’s House Price Index, rose from a 3.7 percent increase in the last quarter of 2021 to 4.5 percent in the months of January to March of this year.

READ ALSO: The most expensive places in Italy to buy a house in 2022

Until the end of 2019, Italy had been one of the only countries in the European Union recording stagnation and decline in property prices.

Industry experts said at the time that average property prices in the country were being weighed down by the high number of old, neglected properties on the market which were proving difficult to sell.

Since the third quarter of that year, house prices have been experiencing an upswing.

The price increase in new and existing homes in Italy. Source: Istat.

The introduction of Italy’s ‘110% building bonus’ as part of the post-pandemic economic recovery plan is one of the reasons for growing interest in the purchase of old buildings in need of serious work.

And also since 2019, a growing number of Italy’s remote towns and villages have famously begun selling off old, crumbling houses for the symbolic price of one euro.

“These trends are taking place against a backdrop of persistent and lively growth in buying and selling,” writes Istat, noting a 12 percent year-on-year price increase in the residential sector, as recorded by Italy’s Inland Revenue’s (Agenzia delle Entrate).

However, although the figures may spark optimism for Italy’s property sector, they don’t take into account events that took place in the second quarter of 2022, such as the European Central Bank’s inflation hikes.

This is among one of the reasons mortgage prices are rising in Italy, which may subsequently impact the upward trend in Italian house prices for the second quarter of 2022 and beyond.

Earlier this month, surveys showed that the higher monthly repayments due to the increase in mortgage rates had caused some two million people in Italy to abandon their property search.

See more in The Local’s Italian property section.

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MONEY

How you can claim a discount on air conditioning units in Italy

Thinking of installing a new cooling system in your Italian home? Here’s a breakdown of the incentives you might be able to benefit from.

How you can claim a discount on air conditioning units in Italy

With summer 2022 likely to go down as one of the hottest summers in Italian history, it’s safe to assume that many homeowners are looking at buying an air-conditioning system at the moment.

And with energy costs constantly rising, even those who already enjoy the perks of artificially cooled air might be thinking of replacing their old ACs with a brand-new system.

READ ALSO: How to stay out of trouble when renovating your Italian property

Having a cutting-edge, high-efficiency AC unit might make all the difference when it comes to the size of your bollette (bills). Switching from a class B to a class A ++ model can reduce running costs by around 30-40 percent every year, according to newspaper Corriere della Sera.

Regardless of whether you’re installing an AC system for the first time or you’re simply replacing an old unit with a new one, the work is still going to set you back quite a bit. 

The price for the purchase and installation of a multi-split AC generally ranges between 1000 and 2500 euros

But don’t despair (yet). As part of its 2022 Budget Law, the Italian government has made a number of financial incentives (AC bonuses, bonus condizionatori) available to those looking to buy an AC unit for their home.

There are three main ‘bonuses’ homeowners may be able to use. Here’s what you need to know about each. 

Renovation bonus (Bonus Restrutturazioni)

If a new AC system is installed as part of wider home renovation works, part of the cost could be covered by this bonus.

Italy’s renovation bonus grants a 50-percent discount on the total amount spent on renovation-related works, including any expenses associated with the purchase and installation of a new AC unit.

Note that the bonus in question only applies if the purchased AC system has an A+ energy efficiency rating or higher (a breakdown of all available classes can be found here) and if the relevant home renovation works started after January 1st, 2021.

The renovation bonus is only applicable when the total amount spent on renovation is below 96,000 euros.

READ ALSO: From weddings to new furniture: 24 Italian tax ‘bonuses’ you could claim

Scaffolding in Barcelona, Spain

The Renovation Bonus grants a 50-percent discount on the total amount spent on renovation-related interventions, including the purchase and installation of a new AC unit. Photo by Pau BARRENA / AFP

Furniture bonus (Bonus Mobili)

The ‘Furniture Bonus’ also grants a 50-percent discount, this time to works involving the purchase of new furniture and/or domestic appliances, including AC units.

Once again, the discount is only applicable if the unit has been purchased after January 1st, 2021.

The incentive is not available if expenses exceed 16,000 euros for items purchased in 2021 and 10,000 euros for items purchased in 2022. The threshold will drop to 5,000 euros for 2023 and 2024.

Ecobonus

Homeowners can also claim back part of the cost of a new AC unit using the ‘Ecobonus’, which affords a 65-percent discount on construction works aimed at enhancing the energy efficiency of a property.

Any expense related to the installation of a new AC system can be included in the Ecobonus as long as the purchased item is a high-efficiency, heat-pump unit with an A+++ energy rating (the highest available rating).

READ ALSO: Do you have to be Italian to claim Italy’s building bonuses?

Under the current Ecobonus regulation, the maximum amount you can claim back is 46,154 euros. Also, as in the previous instances, the bonus only applies to construction works and purchases made after January 1st, 2021.

How to claim your discounts

There are two ways to claim the above-mentioned bonuses:

  • Through the independent tax declaration form known as ‘Form 730’ (Modello 730). In this case, the amount you’re owed will be divided into 10 equal yearly instalments.
  • Through a discount directly applied to your invoices. This option is only available if the homeowner agrees to pay via bank transfer. 

To avoid any delay in the disbursement of the discount, homeowners are advised to keep a copy of all relevant invoices and bank payment receipts.

Worker carrying out construction works in an apartment.

All of the AC bonuses can be claimed via a 730 tax declaration form and through direct invoice discounts. Photo by Henry & Co on Unsplash

A further bonus: Superbonus 110

Technically, the famed superbonus 110 does not cover the purchase of AC units. 

However, homeowners may be able to enjoy a tax rebate of up to 110 percent of the cost if the unit is installed as part of ‘leading construction works’ (lavori trainanti) aimed at increasing the property’s energy efficiency by at least two classes (or at reaching the highest possible rating). 

READ ALSO: How Italy’s building ‘superbonus’ has changed in 2022

In particular, the replacement of a property’s central climate control system is considered to be a lavoro trainante and the purchase of a unit suitable for both heating and cooling can be included in this category.

The superbonus can be claimed via a 730 tax declaration form and through direct invoice discounts. Additionally, homeowners can also choose to transfer their tax credit to third parties such as tax credit institutes or banks. See further information on the tax agency’s official website here.

Useful links

Renovation Bonus (Bonus Ristrutturazione)
Furniture bonus (Bonus Mobili)
Ecobonus
Superbonus 110

Please note that The Local is unable to advise on individual cases. For further information about claiming tax rebates in Italy, consult your local Italian tax agency office or an independent tax advisor.

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