Engel & Völkers, group operating in the luxury real estate sector, inaugurates the new market center located in the center of Florencein Lungarno Guicciardini, a particularly strategic location for which around 100 collaborators will be recruited within the next three years.
“The opening of the new Market Center in Florence is part of the company’s expansion strategy which, in 2024, aims to consolidate its presence in Italy, strengthening both its direct and franchising network,” he declared Muhannad Al Salhi CEO of Engel & Völkers Italia. “Florence, like all cities of art, has always been attractive to our clientele, not only national but also, and above all, international, offering a large portfolio of properties in target with the requests of our buyers, mainly investors interested in real estate renovated, characterized by contemporary design and refined interiors. These structural characteristics make the Engel & Völkers and Florence duo a successful duet representing Italian excellence in our country and in the world. “To date, we boast over 1,000 collaborators and 90 operational shops in Italy. Our goal is to provide an excellent and customized service to our customers and to do this we also invest in the training of our agents, raising their level of competence. The digitalisation of processes is also a crucial and increasingly central aspect in order to be competitive in the national and international real estate panorama”.
On the occasion of the inauguration, Engel & Völkers’ Market Insight on the residential and luxury market of the city of Florence is presented, created with the scientific support of Nomisma. The report shows that in 2023 the prestigious market of the Florentine capital was characterized by relative stability, due to the impact of the unfavorable macroeconomic context and the consequent wait-and-see demand. The areas of greatest attraction for buyers are confirmed as the historic centre, the Lungarno, the Oltrarno, as well as the hilly areas of Pian dei Giullari, Poggio Imperiale, Fiesole with part of San Domenico/Salviatino, Marignolle and the Careggi Hills.
“In Florence, as in the rest of the country, the luxury market has shown substantial stability in the last year, thanks to the lower impact of the cost of credit on the volume of sales, compared to the market as a whole,” he declared Luca Dondi, CEO of Nomisma. “The decrease in the level of interest rates, expected for June, will however guarantee further impetus to this segment”.
Among the current trends, we highlight the increasing demand in some areas, including the Old Town, on the one hand, and the suburbs to the Chianti, on the other. Furthermore, there is a growing interest in traditionally less interesting areas, such as Novoli, in particular due to their proximity to the University, the Court and residential neighborhoods such as Castello and Rifredi. The prevailing profile of buyers is to be found among international customers, mainly from the United States or Northern Europe, and investors. The most requested features include outdoor spaces such as gardens or terraces, elevators, garages and a location close to services. The historic center remains, in fact, the preferred location for real estate investments.
The the rental market is instead influenced by competition from the short-term rental market linked to tourism. From this point of view, the municipality of Florence is trying to balance the needs of residents with tourist opportunities. The number of properties intended for tourist rental has more than doubled since 2016, reaching 14,400 in 2023, with 75% concentrated in the UNESCO Heritage area, which represents approximately 5% of the municipal territory. The tenant profile reflects the varied socioeconomic composition of the city, with a significant presence of professionals, entrepreneurs and students. Foreign demand also continues to have a significant role in the rental market, confirming the attractiveness of the city, already half international since the days of the Grand Tour.
As regards the quotes, according to the investigation, the The luxury real estate market remains characterized by generally stationary prices. For newly renovated properties, the range is wide at the level of the individual valuable areas, which have minimum and maximum average values included in the range 4,100-6,500 euros per square meter. The top price reached over 10,000 euros per square meter in the historic center.
The most prestigious properties, in terms of location and range of average values, are located in the Centro, Michelangelo-Porta Romana and Oltrarno districts. In the hilly area, there is an upward trend in prices, driven by the scarcity of supply.
“The most active demand target for Engel & Völkers has been confirmed in the last half-year as the medium-high range, less or not at all dependent on credit; he has declared Luca Sabattini, Mc Firenze team manager. The average range of potential first home or replacement buyers found themselves facing a credit market characterized by interest rates settled at 4 – 4.40%, but already decreasing from April 2024 (3.7%) and expected to decline further from June. The traditional rental sector, however, continues to record strong demand pressure, especially for properties with quality characteristics that are difficult to find on the market. Therefore, the growth in average rents should not stop, in the face of a slowdown in contracts induced by the scarcity of supply”.
