There are few places in the world where you catch a boat from the airport up to your front door but the Grand Canal in Venice is one of them.
Called the 'most beautiful boulevard in the world', the appeal of Venice’s Grand Canal is proving irresistible for second homeowners, who, after the downturn, are returning to buy in this beautiful Renaissance city.
“Year on year, Venice had regular capital growth until the recession, though the market this winter has been amazing,” says Anne Marie Doyle of Venice Sotheby’s Realty.
Middle market price falls
Last year the middle market (€500,000.00 to €800,000.00) fell by 20% while 10% was shaved off the top end (from about €900,000 upwards). However prices are now stagnating and agents do not foresee further falls.
“Venice will always have an added value as a city of art and because of its stunning location”, says Harrison D’Onofario, of Hamptons International. No surprise then that Elton John, the Duchess of Kent and Lord Browne all have homes here.
Central San Marco property
One of the most popular 'sestiere' (or districts) is central San Marco, home to the Doge’s Palace and lovely San Marco square. Dotted along its narrow walk-ways and canals are chic boutique hotels in converted palazzos and expensive luxury apartments. A two bedroom apartment between 80sqm-120sqm in a quiet “campo” costs €700,000.00 to €780,000.00 euros.
Victoria Farrow, a designer and her architect husband Peter Powlesand bought a rundown office in the ground floor of a Grand Canal palazzo, five years ago for €240,000. “Getting planning permission is extraordinarily hard” says Fowler who only recently finished converting the building into a luxury one-bedroom apartment.
“And everything has to come in by boat – even the kitchen and bathroom”, she says. Farrow estimates the elegant baroque styled apartment is now worth approximately €450,000.
Thriving short term market
Farrow only visits two or three times a year, and like many owners lets the apartment out (via Venetian Apartments). But it's a busy market - Venice, which attracts 2.2 million tourists a year, has a thriving short term rental market and Farrow achieves on average €1,100 a week, 20-30 weeks a year.
But Joanna Butterworth of Venetian Apartments warns that the city is not your typical buy-to-let market. “It is for buyers who love Venice and historic properties and don’t mind the additional time and maintenance which that entails – it’s not just financial,” she says.
Flooding is still a problem though but the Moses project, which is being built to control water levels in the lagoon, is supposed to solve this.
And should you want a break from the waterways, Lake Garda, the Dolomites and the stunning ski resort of Trentino are a two hour drive away. Padua and Verona are on the doorstep.