Among the main areas in which Dreamer Real Estate operates is the luxury real estate market in Florence.Â
The Tuscan city of elegance and taste boasts a portfolio of prestigious properties that represent one of the most fascinating expressions of Italian architecture, history, and refinement.
Historic mansions, magnificent villas, and renovated apartments are in high demand in the real estate market by those seeking an investment or an exclusive private home.
The real estate market in Florence
The timeless beauty of Florence is reflected in luxury properties. Here, historic residences, frescoed ceilings and fine architectural details are interwoven with modern comforts, offering a symphony of history and contemporary luxury.
As for Tuscany’s housing market, the first months of 2023 confirm the positive trend, albeit with a 2.7 percent price increase from the previous year.
In Florence, in the first quarter of 2022, inquiries for luxury properties increased by 52 percent over the previous year and involved fully restored units.
Prestigious neighborhoods such as Oltrarno, or the Historic Center of Florence offer enchanting settings for unique luxury residences.Â
Terraces with panoramic views of iconic monuments such as the Duomo, Ponte Vecchio and the city’s main squares are among the most coveted gems in the real estate market.
the renovation of historic buildings has become an art, transforming old residences into luxury mansions.
It is within this context that, respecting authenticity and enhancing their original charm.
The city of Florence offers a wide range of luxury properties, including historic palaces, villas and apartments, strategically located in the Center or the Countryside, with panoramic views.
Buying fine real estate in Florence: an industry analysis
Florence, with its rich cultural and artistic heritage, has established itself as one of the most sought-after tourist capitals in Europe.
Its growing popularity has led to considerable development in the short-term rental sector, with a variety of options beyond conventional hotel accommodations.
In recent years, there has been an interesting trend in the real estate market, with the transformation of old mansions into luxury residences and apartments for tourist use.Â
These new concepts do not just offer simple accommodations but introduce exclusive services and interests that help define an upscale stay experience.
Luxury residences and entire renovated buildings now feature sophisticated common areas, including elegant lounges, spas, and fully equipped gyms.
An evolution in the supply of tourist accommodation that not only meets the needs of discerning travelers but has also stimulated the growth of a niche luxury market.
What makes Florence particularly attractive for this type of investment is the significant financial return that can result.
Luxury residences and tourist apartments in renovated palaces can generate rents with peaks between 8 and 10 percent gross annually, positioning Florence as not only a culturally rich but also a profitable destination for investors in the luxury hospitality sector.
A convergence of tradition and innovation in real estate has helped further consolidate Florence’s position as one of Europe’s leading tourism capitals.
Luxury Real Estate in Florence
The luxury real estate market in Florence is in high demand, particularly for unique and valuable properties.
Demand is higher than supply, given the exclusivity of the properties. Buyers are attracted to the history, art, and culture of properties with breathtaking views, central locations, or historic features.
However, the availability of these luxury properties can be limited, especially when it comes to historic buildings, which often leads to heated competition and high values for the most coveted properties.
Domestic and international buyers seek properties with unique features, such as original frescoes, vaulted ceilings, and panoramic views.
Demand comes mainly from American, British, French, and Northern European buyers, driven by different motivations.
Some choose Florence as a relocation destination, while others buy after an initial rental period. Others, however, do it as an investment, to own a second home in Central Tuscany and use it as a seasonal property.
Luxury properties for sale in Florence boast of exclusivity. Every detail, from terraces overlooking the Tuscan hills to manicured gardens and high-quality finishes, tells stories of architectural elegance.Â
Buying a luxury property in Florence means investing not only in real estate but in art and culture.
The area’s most in demand are those in the Florentine hills, such as Fiesole.
In general, people are looking for medium to large properties with outdoor space and with two or three bedrooms and areas dedicated to working from home.
Many investors are also interested in properties to be fractionated, from which to derive properties intended to become accommodations.
On the rental front, in 2022, demand was very high, albeit with significantly less supply. This is because landlords prefer short rentals or putting the property into the tourist circuit.
However, industry studies, show how the demand for rental properties has generated interest from investors, given also the concessions provided in this regard.
Apartments or suites placed under short leases can generate a yield of up to 10 percent gross annually if properly subjected to the RIC Regulations.
Short-term rentals in Florence: the RIC Regulations
RIC means the Regional Identification Code assigned by the region to each tourist accommodation facility.
The legislation covers the issue of short-term rentals and is meant to ensure and protect the legality and transparency of accommodations.
The short-lease sector in Italy is undergoing a period of increasing expansion: renting a property to a third party proves to be a simple and profitable way to bring income to a property you own.
In Paris and Barcelona, two of Europe’s most attractive tourist destinations, short-term rentals have been restricted by city authorities. In both cities, the explosion of the tourist rental market has led to growing concern about dwindling long-term housing availability for residents.
To address this issue, regulations have been strictly implemented to limit the duration of short-term rentals, seeking to preserve the balance of the housing market.
The same has also occurred in the Tuscan territory, particularly in Florence.
Tuscany Region, after suspending the service, has once again reopened the RIC portal, intended for those property owners who wish to offer an apartment or vacation home for short rent.
However, this is a system in the process of being updated, which is expected to be subject to change. Information about this is still uncertain: the Italian Parliament is considering replacing the RIC, with the NIC, National Identification Code. A bill that should standardize the current law arranged at the regional level, on a national basis.
The luxury real estate market in Florence represents an invaluable portfolio of extraordinary residences. It is the epicenter of elegance, exclusivity and architectural sophistication, with properties that stand as unique opportunities for investors to own a living portion of Florence, a place where beauty and history come together in a timeless experience.
Luxury villas and apartments for sale in Florence Center and Hills
The luxury real estate market in Florence continues to enchant with its unique offering of fine properties.
Dreamer Real Estate selects the best properties in the heart of the city, or in the first Florentine hills, presenting exclusive villas and residences for sale.
The Center of Florence, rich in history and culture, offers a range of luxury residences: apartments, frescoed penthouses, and historic palaces, with terraces overlooking major monuments and places of interest.
In contrast, the Florence Countryside offers timeless charm, with luxury villas and country houses surrounded by gardens and panoramic views of the city. Restored properties equipped with every modern comfort, which retains the authenticity and beauty of bygone eras.
Contact our team of experts for more information regarding the sale and purchase of a prestigious property in Florence.
