In Merano, people are buying to supplement their income
The best investment: two-room and three-room apartments for subsidised or short-term rentals
South Tyrol is a unique region not only because of its special statute, but because the property market trend has always been higher here than the national average, not to mention widespread affluence, one of the highest employment rates in Italy, limited building plots, more restrictive urban planning laws and demand outstripping supply. Thanks to the German language that is spoken fluently in these parts, the local tourist industry relies heavily on visitors from Germany, Austria and Switzerland. All this has meant that, in tourist towns like Merano with just 40,000 inhabitants, the national property crisis of 2008 was barely felt, because here property prices have not only remained stable, but have even continued to rise. There is no doubt that anyone who decides to buy in this area would be making a sound investment because property values will be higher in the medium and long term. “The Merano property market is really diverse. The town is divided into numerous districts boasting premium residential areas and a very high quality of life. We also felt the 2008-2009 crisis but not to the same extent as elsewhere. Prices started to rise again from 2013.” These are the thoughts of Alexander Benedetti, owner of Studio Benedetti Real Service (tel. 0473.236613), whose business primarily focuses on property sales and valuations throughout South Tyrol and the Dolomite Alps, including Cortina. “We have been around for over 75 years and are members of Christie’s International Real Estate Network,” he points out, defining demand for both new properties and refurbishment projects in Merano as “very buoyant”.
But how much do houses cost here? “Buying a house in Merano in the most expensive area, which is Maia Alta and around the Tappeiner hospital, would mean parting with at least €5,000 per square metre for a newbuild and €3,000 €4,000 per square metre for a renovated property,” explains Ivan Milluzzo, Fiaip (Italian Federation of Professional Estate Agents) Provincial Councillor of Bolzano, responsible for Merano (tel. 392.5752722). “The raising of the IMU property tax has led many property owners to rent them out at a subsidised 3+2 rate with a 10% flat rate tax, or to take advantage of the Airbnb tourist model.” What is the most profitable investment? “Buying a two-room apartment for subsidised 3+2 or short-term rental is the best investment,” confirms Milluzzo. In complete agreement is Tobias Taiber from Topinvest Immobiliare (Tel. 335.1411184), who is responsible for sales and rentals. “Whoever buys a house in Merano either lives in it or rents it out. Here, there are a lot of green spaces and protected natural areas, it is prohibited to build outside of the town and farmsteads are being sold. I would recommend investing in a renovated two-room or three-room apartment. We are heavily involved in the rental market and manage relationships with tenants because of its resurgence.”
“Over recent years, the Merano property market has been dominated more and more by luxury homes,” adds Mati Mayer, owner of Immo Mayer (Tel. 0473.421778), which focuses solely on the sale of premium properties worth in excess of one million euros, particularly prestigious villas and apartments in the Burggrafenamt (Burgraviato) district around Merano. “Because there is no land to build on, buildings are demolished to make way for new properties,” Mayer explains. “For example, a hotel was demolished to allow the construction of 10 luxury apartments, which all quickly sold off-plan for an average price of €6,000 to €7,000 per square metre.” “Properties on the market are snapped up in a matter of minutes; whoever is fastest wins. Here properties sell fast because their value is certain to go up in the future,” says Sergio Armanini from Profi Immobiliare (Tel. 0473.201095), who recommends visiting www.immoreal.it/it-it, South Tyrol’s largest online property market. Armanini also confirms the prices already alluded to by Milluzzo: a new house goes for €5,000 to €8,000/€9,000 per square metre.
The expert from Profi Immobiliare also shared his insight into the most prestigious and expensive areas of Merano, like Maia Alta, the hilly area that benefits from beautiful views, primarily known for being the mansion district awash with villas and manor houses. The best way to explore Maia Alta is along the Sissi trail that runs from Merano to Trauttmansdorff Castle. Then there is the very quiet via Verdi, in the musicians’ district, just two minutes from the town centre. These are all top locations that are also tempting for those looking to invest in a property for short-term rental, in an area popular with Italian, German, Austrian and Swiss buyers and that will soon become even more sought-after thanks to the expansion of Bolzano airport. “Building plots are the main reason for South Tyrol’s consistently high property prices,” concludes Elio Serra, CEO of the Serra Invest Group (Tel. 0473.235585), which focuses exclusively on sales and has been building luxury homes in South Tyrol and Sardinia since 1978. “Here, plots are sold by cubic metre rather than square metre, with a precise volumetric index that also regulates building height and guarantees uniformity throughout the district.”