A safe investment? Two- and three-room apartments
In Modena, Sassuolo and Castelvetro, now is the right time to buy: short-term rentals, both traditional and arranged, are booming and attracting investors. And Ferrari is expanding its workforce
In Modena, two- and three-room apartments are the most sought-after properties. In this city of art with a rich historical heritage and good food, as well as study and work opportunities - Ferrari is expanding its facilities and creating more jobs - the property market is thriving and growing. And rental prices are also very high, whether in the more prestigious postcodes like Sant’Agnese, or those up and coming like Sacca and Madonnina. For Alberto Bignardi, Chair of the Modena Italian Federation of Professional Estate Agents (FIAIP), property broker, city councillor and rights activist, the safest investment is in the municipality of Modena because here prices are more stable. And he has a wealth of experience in the property industry, having transformed his estate agents into a successful business of more than 20 staff by embracing the latest technology, ongoing training and innovative tools. “Right now,” explains Bignardi, who defines himself as an estate agent and certainly not a property developer, “thanks to the general urban plan, if an investor presents a good plan to the city, it is very likely to be approved. Regulations have recently changed, doing away with the rigid regulatory framework of the past: what matters is the principle of ‘regeneration’, meaning that the plan is of benefit to the community and not just the redevelopment of one’s own land.” It is a new way of thinking about urbanisation, with the city planner responsible for designing a better-performing city. And the municipality, in this case Modena, has more power to adapt to last minute housing, work and climate needs. According to the FIAIP Chair, Modena also has another rich resource: “rent is comparable to large regional capitals such as Milan, Bologna, Florence or Rome, but the price of property per square metre is much lower, meaning investors have greater incentive to buy property here to then put on the rental market, which is currently the most profitable sector in Modena.” The recent local increase in agreed rents (three years + two) by trade associations has also helped even out supply and demand for rentals. “Students immediately agreed," Bignardi told Ville&Casali , "because it allows their parents to take advantage of attractive tax breaks, and the agreed rent amount today is much closer to that of assured shorthold tenancy agreements and allows owners to pay less IMU property tax". All property dynamics that herald new opportunities in the automotive capital.
SASSUOLO AND THE ADDED VALUE OF POTTERY
It is not just Modena. Cristina Bellei, owner of Bellei Servizi Immobiliari, a local agency specialising in the sale and rental of medium-high-endcommercial and residentialproperties - including luxury villas - is keen to put the spotlight on Sassuolo. “Sassuolo is the potterycapital of the world. Here there is still a bargain to be had, but you need to act quickly because prices are set to rise: I recommend buying a two- or three-room apartment, either for the short-term rental market or for private use”. According to Bellei, the most profitable investment is an energy-efficient (class A), 90-square metre three-room apartment in a sought-after central Sassuolo postcode close to parks, which today would still cost around €2,700 per square metre but is certain to cost more in a few years’ time. What other areas would make for a sound investment? “In Formigine, properties cost a bit more at around €4,000 per square metre, replies Bellei. This is because it is close to Maranello (19 km south of Modena), which has been the home of Ferrari, prestigious luxury sports car manufacturer founded by Modena’s very own Enzo Ferrari, since 1943”. The property expert would also recommend investing in a villa in VillaggioZeta, in the predominantly residential south-west of the Municipality of Modena, or in a home in Modena’s historic centre. Italians account for almost 70% of investors, with the remainder made up of overseas buyers, predominantly from Europe. MontaleRangone is home to the bilingual International School of Modena, which attracts many families, including from Bologna.
CASTELVETRO: BUYING LAND WITH PRE-EXISTING BUILDINGS
Immobiliare Castelvetro estate agents specialises in both the high-end local property market and the agricultural sector. As Roberto Esposito, one of the company’s three partners, explains, “Our strength is the direct rapport that we build with people. We deal more with sales than rentals, although our portfolio of rental properties is constantly expanding. We do client-specific research that we bring into the homes. The majority of our clients are Italian, with some 80% coming from the Castelvetro area. We have a good relationship with the Ferrari directors for when their drivers stay here and want to rent a villa for a while. We have Ferrari and Philip Morris, and luxury knows no crisis.” What makes a good investment? In Castelvetro, prospective investors are advised to buy land on which rural buildings already stand to be sure of obtaining the necessary permission to build a new villa or house there. And buying rural land, concludes Esposito, “makes a sound investment if setting up a second agricultural company, as the tax breaks from the primary company can flow into it”. According to the expert, buying a studio or two-room apartment for the short-term or classic rental market represents another good investment, particularly if new or in the historic centres of Castelvetro, Modena or Bologna.
Published on Ville&Casali November 2024
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