Italy has always been one of the countries in the world with the most significant number of visitors who flock to the artistic, historical, cultural and natural destinations of the “Bel Paese” every year.
The ever-increasing number of visitors, net of the recent two years of the pandemic, has led to a considerable expansion of the real estate market for accommodation and tourist real estate.
In addition to evergreen destinations such as Tuscany, Umbria and Sicily, other regions such as Puglia and Calabria have been targeted by international investors.
International real estate companies and foreign individuals can try their hand at tourist reception with the desire to offer splendid destinations for holiday or business stays.
What the Italian real estate market offers for tourist stays.
What does Italy offer for those who want to invest in tourist accommodation? The choices are many and depend on the degree of investment you want to face.
Italy is rich in extensive accommodation properties, particularly in the southern regions. However, these structures are most often dating back in time and need modernization work.
The hotels are primarily located in urban centres and near tourist destinations, at the service of customers who stay there for leisure or work.
It is not challenging to find large complexes even in peripheral areas less frequented by tourism and more at the service of a local user.
A particular feature of the larger structures is that they are intended for different purposes, such as weddings, conferences, events and small fairs.
In recent years a particular trend has developed towards the scattered hotel, particularly suitable for the villages of which Italy is full.
The scattered hotel is characterized by relocating rooms in different areas of a block or a neighbourhood, separated from the hotel’s common areas.
These properties are of cadastral category D and fall within the special or tertiary production ones.
VILLAS, APARTMENTS AND HOLIDAY HOMES
These are properties intended for housing that can be used as accommodation for tourists.
Italy offers a multiplicity of properties of this kind, particularly prestigious structures such as apartments and historic villas.
Investing in villas, apartments and holiday homes can still be affordable.
The excellent availability of real estate assets of this type that Italy offers allows the investor to weigh the choice well.
City, sea, mountain, hill or countryside is something for everyone.
Even a single property can be used for accommodation activities. It will be sufficient to comply with local and regional regulations to be able to carry out a tourist reception activity, even a small one.
“MASSERIE” AND HISTORIC HOUSES
Mainly present in the southeast of the country (Puglia) is characterized by imposing stone structures dating back between the ‘600 and ‘800 and intended for the cultivation of the land and breeding.
Today they are mostly converted into tourist accommodation and farmhouses, located for the most part in beautiful positions between the hill and the sea.
These facilities offer tourists a different experience, immersed in nature and the Italian regional tradition.
In some cases, it is possible to find not refurbished structures or totally restored (which also allows a certain margin on price).
The farms are usually also equipped with appurtenant land that allows the development and cultivation of agricultural products or the possibility of creating ancillary services such as swimming pools and areas for entertainment and wellness.
In particular areas, it is also possible to find hypogea used in antiquity to produce oil and preserve wine.
These properties are lately a favourite destination for weddings and special events and are increasingly sought after by foreign investors for commercial and private use purposes.
The steps to be taken when investing in hotels, accommodation and tourist properties in Italy.
How do you deal with an investment in a property to be allocated to tourist reception?
PHASE A) INVESTMENT PLANNING:
- Drafting of a Business plan (Companies) or a financial plan (Individuals)
- Identification of the property through specialized professionals
- Feasibility study, selection and analysis of potential properties from a structural, commercial, legal and fiscal point of view.
- Start of negotiations.
PHASE B) PRELIMINARY REQUIREMENTS
- Identification of the purchaser and possible creation of the appropriate legal entity (Companies)
- Subscription of the offer (Individuals)
- Possible finding of sources of financing
- Signing of a letter of intent (Companies) and/or preliminary purchase contract (Companies/Individuals) and/or contract for the sale of a company or branch (Companies)
- Technical-legal due diligence buyer side to verify the quality of the investment and possible legal issues.
PHASE C) CLOSING
- Execution of any renovation/modernization works (Companies/Individuals)
- Completion of any administrative procedures
- Signing of the final purchase contract
Benefits of investing in Italian hotels and accommodation properties
Many regions have adopted incentives for foreign investors who wish to buy and allocate real estate to tourist accommodation facilities.
There are various tax benefits and incentives at the regional level for those who renovate and allocate the properties to accommodation for tourist reception.
Here are some examples:
When you decide to invest in hotels and tourist accommodation in Italy, it is advisable to evaluate the multiple aspects of the operation with specialized legal and real estate consultants to make the investment profitable and obtain massive benefits.