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10/01/2013

Managing a Real Estate investment in Italy

Three different Real Estate investors, three different assets, same story: good business idea idea, in-depth investment analysis, appropriate project but poor management and poor result. Investing in Real Estate in Italy to enjoy the Italian lifestyle is not difficult, but requires strong operational and financial control. Cesare Carbonchi from Milano reports.

A tremendous potential for real estate investments in Italy
Almost everybody in the world would love to spend some time in Italy to be part of the Italian lifestyle. It's not just a matter of food and wine, landscape or arts, it's a different way to spend and live our time. In Italy you may be part of the beauties rather than just look at them. As real estate prices have decreased for the financial crisis, more and more international investors are therefore considering acquiring a real estate in Italy.

The Market: increasing demand from non-ECC visitors
While English, French and German visitors and investors already perfectly know Italy, visitors and investors from non-ECC countries were limited until few years ago. What is happening today and will reasonably increase in the future is the massive incoming from countries as Russia and Asia. Should international travellers, visitors and investors from these countries love the Italian lifestyle as much as English and French people already do, there would be no available place for living in such a small place as Italy is. What would happen to Real Estate prices is easily predictable.

What is attractive and will increase in value
If You are an investor capable to manage a hundreds millions project just focus were everybody should go at least once in his life: Venice, Rome and Tuscany. If You either are not that wealthy or You want something less obvious, then there are a lot of locations that look perfect to both enjoy the Italian lifestyle and ... make money. Let's come now to the financial issues.


What generally does not work
While buying a ready-to-stay apartment or villa is not that difficult, when we talk about real money and large Real Estate investments and / or large RE development projects that's a different story. In my experience international investors are tremendous professional in the planning and acquisition phases as they are terribly poor when coming to the execution and control of the venture in Italy. In all the three cases I have mentioned in the beginning of this article I had to solve problems on behalf of international investors in RE developments that did not go as planned. This might happen anywhere but I would believe that a better control during all phases of the execution might have brought to a better result.

What we can do for International investors
We would love to say that we are able to deliver successful investments but this is not true. We solve the problems that we could not avoid and we do this immediately. And this makes the difference most of the times.