How does it work?

Basically you purchase a property that has not been either built or completed. Developers understand that if buyers cannot see a physical property at the beginning, they will expect to pay a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer simulations rather than an actual property.

By the time the property is finished, prices rise due to market forces and the more popular appeal of a completely finished property that is ready to move into. Investors can then sell the property on to another property purchaser and in doing so, enjoy some excellent returns of between 15% to 60%, whilst never having paid the full purchase price. Depending on the down-payment and speed of construction, profits from off-plan deals can range from a staggering 40% to 100% per annum.

Many developers in Italy offer beneficial payment schemes. Payment schemes currently on offer allow you to buy property off-plan, ie. before or during construction when the price remains low, with down payments of between 15% and 40% of the property price.

Investors should make sure that the property is located in an area where they will resell quickly and easily or where there is a high rental demand for their buy-to-let option, depending on their plans.

Maximizing Profit From Off-Plan Investment in Italy

• Purchasing early

  Prices never remain low for long. As the construction progresses, prices begin to rise steadily. In Italy, as in any other market, it is important to buy as soon as possible during the early stages of development when prices remain very competitive but are already beginning to rise. Early investors will invariably see the greatest returns.

• Purchasing the best units

  The earlier purchaser gets to choose the most sought after properties on any given development. The best units always offer higher capital appreciation in the smallest period of time frame and can also command the greatest rental incomes. Remember that penthouses are often firm favourites.

• Prices often increase as development matures

  As the development begins to be constructed the value of the units will begin to rise, particularly when a completed show home is available for buyers to view.

• Price appreciates as more units sell

  As more units are sold, the price of the remaining units rises. Units sell faster when buyers are able to physically see them. There is often a phase payment structure in place which mirrors the increasing value of the properties. This is great news for the early investor, because if you should decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid the deposit.