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Sep 24, 2023

Real Estate in Italy

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By Alison Gregor

A PENTHOUSE IN A 17TH-CENTURY PALAZZO ON A CANAL IN VENICE

1,390,000 euros ($1.96 million)

This contemporary-style penthouse apartment on the San Moisè canal in the center of Venice has more than a dozen large casement windows for viewing the San Marco neighborhood, including its distinctive bell tower.

The 1,940-square-foot apartment, which has three bedrooms and three bathrooms, is on the fourth floor of the wood-and-brick Palazzo Barcaroli, which has seven other apartments and a grand entrance off the canal. The palazzo once belonged to the Venetian noble family of Foscari, whose ancestors included a 15th-century doge, said Carlo Prandini, the owner of Alta Gamma Real Estate, which has the listing.

The building is in good condition but has no elevator. The penthouse was redesigned and refurbished in 2009 in a sleek modern style by the Italian architect and interior designer Barbara Angi, but also incorporates the heavy beech ceiling beams, which arrived in Venice via the Alps when the palazzo was built. The architect designed a second level in the attic that comprises a third bedroom and a study, reached by a heavy oak staircase.

The metal entrance door opens to a foyer leading to a large living area that encompasses a den and two dining spaces. The various uses are physically defined by the staircase to the attic; the kitchen, which is fully enclosed and has exterior walls of black Venetian plaster; and the floor-to-ceiling oak shelving. Off the foyer is a small hallway leading to the two main bedrooms. Each has its own bath, but the master also has two wardrobe rooms — one so roomy it is currently used as a gym.

The apartment has air-conditioning, a wood-burning stove in the living area, oak parquet flooring with under-floor heating, and Venetian stucco walls. Contemporary furnishings — including a chaise longue designed by Le Corbusier and made by the Italian furniture designer Cassina — are not included in the sale price but can be negotiated.

The stark all-white kitchen was designed by the high-end German kitchen designer Bulthaup with appliances by NEFF Kitchens of Canada.

All three bathrooms have tiles by Bisazza, a glass mosaic manufacturer in northern Italy. The master bath has a tub; the other two have showers. The unit also has a laundry room. A custom-made oak furniture unit with two single beds (one a hideaway) is included in the second bedroom, and a custom-made platform double bed comes with the attic bedroom. Several of the many windows have ornamental balconies overlooking the waterways. The Palazzo Barcaroli is steps from the Piazza San Marco and also near the luxury shopping strip, Calle Larga XXII Marzo, with nearby fashion boutiques like Gucci and Louis Vuitton.

The San Marco neighborhood also has many restaurants and art galleries. While the palazzo is accessible only by boat or gondola, there are some garages for cars within a reasonable distance, Mr. Prandini said. Venice Marco Polo Airport is 40 minutes away by boat, he said.

MARKET OVERVIEW

Prices in Venice rose steadily after 2001 but have leveled off since the global economic downturn in 2008. Some multimillion-dollar apartments on the higher end of the market can take years to sell, Mr. Prandini said. This one has been listed for a year.

Among Venice's most desirable buildings are the hundreds of palazzi, many of them formerly public buildings, which date as far back as the 13th century, said Filippo Gaggia, an owner of VOV Estates, a Venice affiliate of Savills. The palazzi, which often have "Casa" or "Ca’" before their name, run the gamut of architectural styles, and perhaps the most popular with foreign buyers are Gothic, he said.

Ann Adenius, a director with Signature Residences Worldwide, described Venice's market as favoring sellers at the moment. Units that tend to sell more quickly have distinctive historical features like original frescoes, exposed beams, parquet flooring, ornate plasterwork, marble pillars and floors, and stone balconies.

"The most sought-after position to buy a property," Ms. Adenius said, "is still a central position near or overlooking the Grand Canal, especially between the Rialto Bridge and St. Mark's Square."

A 1,000-square-foot apartment in need of restoration would range in price from about $655 to $1,310 a square foot, Mr. Gaggia said. An apartment on a canal with canal views can obtain a premium of 10 to 20 percent, he said. The list price of just over $1,000 a square foot for this apartment — which is meticulously refurbished and set on a canal — is rather low, to expedite its sale, Mr. Prandini said.

Venice's buildings originally went up on wooden piles. Flooding on the ground floors and lobbies of many buildings is an annual problem, but this doesn't affect most luxury apartments, which are on upper floors, Mr. Gaggia said. No special insurance is needed, and there is hope that the government's MOSE Project, which is installing inflatable gates to dam high waters, will alleviate flooding altogether in two years, he said.

WHO BUYS IN VENICE

Traditionally, Venice has seen many French, American and British buyers in the luxury sector, though the weakness of both the dollar and the pound has recently altered that equation, Mr. Gaggia said. Most current buyers are European and Russian, brokers said.

Besides the San Marco neighborhood, foreign buyers tend to look in the Dorsoduro neighborhood, according to Mr. Gaggia. Dorsoduro, which is across the Grand Canal from San Marco, also includes Giudecca Island, which has undergone a lot of new development in recent years.

BUYING BASICS

There are no restrictions on foreign buyers in Venice. Notaries handle sales; their fee is typically 1 to 2 percent. Not many prospective buyers use agents, though they are available; as for sellers’ agents, they usually charge 4 to 6 percent, split between buyer and seller, brokers said.

The buyer typically makes a proposal to the seller, putting down a token 1 to 5 percent, Mr. Gaggia said. Once the seller accepts the offer, the parties complete a preliminary sales agreement, with the buyer putting down 10 to 20 percent. At the closing, the buyer pays the balance and any outstanding fees, he said.

There is a registration tax, based on a government-calculated fiscal value that is usually much lower than the market value. For a primary residence, the registration tax is 4 percent of that value; for a second home, it is 10 percent.

Although many foreign buyers pay in cash, some take out mortgages from Italian banks, Mr. Gaggia said. Mortgages are typically for 10 to 15 years, and banks will often finance 80 percent of the sales price, he said, adding that interest rates are running at 4 to 5 percent.

WEB SITES

Italian National Tourism Agency: italiantourism.com

Venice government portal: comune.venezia.it

Italian Federation of Professional Real Estate Agents: fiaip.it

LANGUAGES AND CURRENCY

Italian; euro (1 euro = $1.41)

TAXES AND FEES

Condominium fees are about $113 a month; there are no property taxes if this is the buyer's only home in Italy, said the agent.

CONTACT

This apartment is represented in Venice by Alta Gamma Real Estate and marketed worldwide by Prestige Property Group.

Carlo Prandini, Alta Gamma Real Estate, 011-39-041-2437843, altagamma-re.com

Prestige Property Group, 011-44-1935-817188, prestigeproperty.co.uk

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