Series Of Earthquakes In Italy Sends Tremors Of Concern Through Prospective Buyers
New survey shows that recent seismic activity could have repercussions for local real estate market.
Italy’s recent spate of earthquakes could have seismic repercussions for its real estate market. In a survey, conducted by Gate-away, an Italian property site, 700 users were asked about their views on recent quake activity. The poll showed that 66 percent of future foreign homeowners are bearing earthquakes in mind when deciding to purchase a second home in Italy.
That news, though shouldn’t immediately send shock waves through the entire Italian real estate or tourism markets. The report, featured in Mansion Global, also showed that 95 percent of users consider Italy a safe place and 87 percent said that they would be willing to visit central Italy as a tourist in the next 12 months.
Simone Rossi, managing director of gate-away.com, said in a statement that onlv 43 percent said they would “continue their search in safer areas of Abruzzo, Marche, Lazio, and Umbria.”
Over the last two years Italy has experienced a series of crippling earthquakes. In August 2016 300 people were killed in Abruzzo, Marche and Lazio. Last January four more quakes hit the same areas causing buildings to collapse. As a result sales prices in Italy dropped 14.6 percent from 2010-16, according to a report in Bloomberg. Now the Gate-away survey reports that 33 percent of homeowners are investing in upgrades that would prevent future destruction of homes from natural disasters.
Italians can also gain solace from the effect earthquakes has had on real estate on a long term basis in certain markets. The 1989 earthquake in San Francisco clearly didn’t hinder real estate in subsequent years as the city went in to boast some of the highest prices in the country. Although, that in part could be attributed to the anomaly of Silicon Valley, in other area disasters both natural and not have not decimated housing and commercial markets. Tribeca and the Financial District in New York have experienced record property values since Sept 11th 2001 and Hurricane Sandy.
New Orleans also entertained record property price growth in the years after Hurricane Katrina devastated the city and was likened to “an engine that was racing really fast,” by Mark Boline of New Orleans real Estate Relocation Services. Prices spiked by 14 percent in the last half of 2015 and have continued to be buoyant, despite cooling a little.
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