Chinese homeowners buy a slice of La Dolce Vita
By Mariella Radaelli
Italy has been in the news recently for the high-profile purchase of legendary soccer clubs by Chinese investors, but it isn’t solely corporations that are buying. Wealthy and middle-class Chinese individuals are also grabbing a slice of La Dolce Vita, or the sweet life, for which Italy is renowned.
Over the past 18 months, Chinese nationals have poured 600 million euros into Italian real estate, according to Andrea Faini, CEO of World Capital Group, an international real estate consultancy headquartered in Milan with offices in Beijing and Shanghai.
The real estate expert, who is also business advisor to the China-Italy Chamber of Commerce, works closely with Chinese investors and banks such as Bank of China and China Construction Bank, which recently opened a new branch in Milan to facilitate transactions.
Another indicator of robust Chinese activity is that “Agriculture Bank of China considering opening a branch in Milan”, says Faini.
Alberto Rossi, an analyst with the Fondazione Italia Cina, says data on total Chinese investment in Italy last year is not yet available, but “certainly in 2015 their investments increased by at least 35 percent” as the wealthy put their money in assets including homes.
Citing a Bank of China study, the newspaper Il Giornale reported that 60 percent of wealthy Chinese nationals are investing in Italian real estate. And the motivations are broad.
“Some are investing for resale and rental, some are simply buying second homes, and some are buying as they move to Europe on investor visas,” says Faini.
“Certainly the Chinese love Italian homes and the reasons are fairly evident,” notes Faini. China’s entrepreneurs, venture capitalists and middle class citizens are all drawn by the allure of the Italian style. Another fundamental reason is property prices have dropped for more than seven straight years, an average of 23 percent since 2008, according to European Central Bank figures. And relatively low prices today continue to fuel investment.
Italy has been in the news recently for the high-profile purchase of legendary soccer clubs by Chinese investors, but it isn’t solely corporations that are buying. Wealthy and middle-class Chinese individuals are also grabbing a slice of La Dolce Vita, or the sweet life, for which Italy is renowned.
Over the past 18 months, Chinese nationals have poured 600 million euros into Italian real estate, according to Andrea Faini, CEO of World Capital Group, an international real estate consultancy headquartered in Milan with offices in Beijing and Shanghai.
The real estate expert, who is also business advisor to the China-Italy Chamber of Commerce, works closely with Chinese investors and banks such as Bank of China and China Construction Bank, which recently opened a new branch in Milan to facilitate transactions.
Another indicator of robust Chinese activity is that “Agriculture Bank of China considering opening a branch in Milan”, says Faini.
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| This stately home in the Italian countryside now has Chinese owners. |
Citing a Bank of China study, the newspaper Il Giornale reported that 60 percent of wealthy Chinese nationals are investing in Italian real estate. And the motivations are broad.
“Some are investing for resale and rental, some are simply buying second homes, and some are buying as they move to Europe on investor visas,” says Faini.
“Certainly the Chinese love Italian homes and the reasons are fairly evident,” notes Faini. China’s entrepreneurs, venture capitalists and middle class citizens are all drawn by the allure of the Italian style. Another fundamental reason is property prices have dropped for more than seven straight years, an average of 23 percent since 2008, according to European Central Bank figures. And relatively low prices today continue to fuel investment.
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