Buying Property in Umbria
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Articles on Italy
Otherwise known as the 'green heart of Italy' or 'Tuscany without the tourists', Umbria is a remarkably uncrowded region in central Italy. Flanked by Tuscany to the west, Lazio to the south and Le Marche to the north, there are no beaches, but what it lacks in coastline, Umbria makes up for in lush, green valleys and hills. For water lovers, there's Lake Trasimeno to the west, near the Tuscan border, Italy's fourth-largest lake. The River Tiber cuts a north-south line through the middle of Umbria, its subsidiaries winding through the region's picturesque valleys and ravines.
Perugia is Umbria's historic capital, a lively yet attractive town with a strong student presence; Gubbio, Assisi and Orvieto are some of the region's other well-visited gems.
Perugia airport, which opened last year, has given the Umbrian property market a boost, although the region remains a predominately peaceful part of the world. Although it is rising in popularity among foreign buyers - particularly Brits who don't want a cliched Chiantishire hideaway with a preposterous price tag - expats are fairly discreet.
Marc Wisbey, who has lived in Umbria for 11 years and is the director of Italian property website Itili, says: "There's quite a good English community here, not like in Spain where they're all clustered together, but just dotted here and there in the hills. So you can be in the real Italy but not feel totally isolated, either."
Wisbey lists property for sale in Umbria on behalf of private sellers. "We operate mostly in a triangle between Todi, Perugia and Foligno - at the heart of this is Montefalco (the wine-growing region) Assisi and lots of pretty villages like Levagno and Spello. We think it's the nicest area - we first came here on holiday and liked it so much we bought a house here."
Central Umbria does tend to be favoured by overseas property buyers, as well as the area around Lake Trasimeno. The south and north of the region are a little less explored and tend to be more traditional.
Countryside bolt-holes are most desired among foreign buyers, and most widely available, but a pad in one of the historic towns will be harder to find and tend to command a premium. For cheaper properties, try the rugged north around Citta di Castello and Umbertide.
Most of Wisbey's clients are looking for three-bedroom houses priced between €300,000 (£207,000) and €500,000 (£346,000), either as second homes or permanent residences, with good views and manageable gardens. He adds there may be an oversupply of houses in the €1.5 million price range (about £1 million): "These are beautiful houses but buyers are not coming out of the woodwork, particularly the Americans, because of the dollar."
John Tunstill, who has lived in Umbria for 25 years and runs the website Properties Umbria, insists that buying in this region is a good investment, and attributes the robustness of the market partly to the fact that Italian-owned properties don't sell frequently. "Many properties here are owned by peasant farmers who know that Giorgio over the hill got half a million euros for his house last year, so they say 'I won't take anything less for mine.' Selling isn't a necessity for them - when house prices fall back, they just wait until they go forward again, which is terrifying for purchasers but for anybody who owns property here it's wonderful, because they know that their pound, dollar or euro is absolutely secure."
Steve Emmett, managing director of Italian property agent Brian French, agrees that there is a limited supply of decent property. "Good property - the sort of thing that foreigners like to acquire - is hard to get your hands on, and that's what maintains the price level. Even if all the other markets go into a big downturn, there's always someone with the money to buy what they want. Here, you buy houses rather like old paintings or antiques."
Generally, though, property in Umbria is very reasonably priced. Mark Slaviero, director of Homes in Italy, explains: "It is still possible to purchase a small village property requiring some work for as little as Û80,000 (£55,400). Expect to pay anything around €120,000 (£83,000) for a two-bedroom apartment in good condition. Farmhouses requiring renovation start from €160,000 (£110,500) and a completed farmhouse will cost anything from €400,000 (£277,000) upwards."
However, Marc Wisbey believes that some vendors are overcharging. "I've found that some local builders and house vendors are being very optimistic with their house prices, charging maybe €200,000 (£138,600) more than they're worth. My advice would be to research the area well and don't be afraid to make audacious offers. Try to negotiate the price, and ask how long the property's been on the market - if it's a couple of years, that's a sign that it's overpriced."
To renovate a property in Umbria - and there are plenty of them - Wisbey advises adding around €1,000 (£690) per square metre to the cost of the property, which will probably be around €1,500 (£1,040) per square metre.
But, warns John Tunstill, renovation in Italy is a difficult process. "It takes a lot of courage, strength and hard work. I've been doing it for 20 years but the Italians change the rules every 15 minutes it seems."
Most foreigns buying property in Umbria buy a holiday home, which they will rent out for most of the year. "It's quite a good market for rentals," says Marc Wisbey. "Our clients can expect to get 15 to 20 weeks per year in rent, which more than covers their costs."
Expect to receive between £500 and £700 per week for a two-bedroom apartment with access to a pool. A four-bedroom detached villa can command as much as £1,500 per week in high season, though rentals obviously vary according to the size and location of the property. Many of the larger farmhouses offer excellent rental opportunities, and sections of the property and outhouses could be converted into self-catering units or run as an agriturismo (holiday accommodation on a farm).
Quintessential Umbrian properties in the countryside are farmhouses, cottages and country estates. If you're looking for new-build property, you'd be hard-pushed to find it - Italy is subject to strict planning and preservation laws and restricts overdevelopment, and, frankly, there just isn't the demand for it in Umbria. However, there are a limited number of new properties on the market, usually built as single dwellings or in a small cluster.
For example, Italy-based Diamante Immobiliare is marketing four new villas near Perugia with panoramic views, gardens and terraces, for €420,000 (£290,000) each. And near Orvieto, it has 21 new apartments for sale on the ground, first or second floor ranging from 45 square metres to 95 square metres, with garage and terrace, priced from €65,000 (£45,000).
Finally, with regard to the buying process, there is just one recent change in Italian property law. It used to be common practice to avoid property tax in Italy by declaring less than the full price paid for a house. A new law was introduced last year that allows buyers to declare the whole price, but only pay tax on the registered value (valore catastale), which is often much lower than the market value.
Be assured that buying property in Italy is a safe and fully regulated process, with no restrictions for foreign buyers, although always ensure you use agents that are registered with the Chamber of Commerce.
Read our other articles about buying property in Italy:
well as our overseas news stories affecting the property market in Italy, the Homes Overseas Guide to Buying Property in Italy or view our range of property for sale in Italy.
First published in Homes Overseas Magazine December 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.