Real estate: Engel&Völkers expands its headquarters in Florence (but the problem is finding houses to sell)

Looking for houses to sell or rent: rather than demand, it is supply that is scarce in the medium-high segment of the Florentine real estate market, driven by the “first home” but also – unlike other cities – by international customers (especially Americans and Northern Europeans) who are looking for a good retreat to spend holidays or part of the year. It is this market that the German real estate operator Engel & Völkers is looking at which, already present for some time in Florence with an affiliated agency, has now opened a direct sales point on Lungarno Guicciardini, led by Luca Sabttini, increasing the number of collaborators from three older than 15.

In the hilly area prices have already risen

The intent is precisely to grow in a residential market which, after the boom experienced during Covid, is chasing a difficult balance. In 2023 the number of sales decreased (-9.5% in Italy, -12.6% in Florence), but the high segment held up better due to less dependence on interest rates. Now the forecasts – including those of Nomisma, which Engel & Völkers commissioned to focus on the Florentine market – say that transactions are destined to restart in the second half of the year. “The luxury real estate market remains characterized by a stationary trend in average property prices,” says Nomisma, indicating a range of 4,100-6,500 euros per square meter with prices that have reached 10 thousand euros in the historic center. The upward trend in prices is more pronounced in the hilly area, driven (here too) by the scarcity of supply.

Residential rent? Rare commodity

A separate discussion for rentals, which have now become a rare commodity due to the pressure exerted by short-term tourist rentals, with serious difficulties for those looking for a house to live in. “The demand for traditional rentals is strong, especially for properties with quality characteristics – explains Sabattini – which is why the growth of average rents should not stop, in the face of a slowdown in contracts induced by the scarcity of supply”.