The future direction of the Venetian property market could owe something to
François Pinault, the billionaire art collector. Pinault, now the largest
owner of art space in Venice, launched his second gallery in the city during
the opening week of the 53rd Biennale, the art festival that is now on. Also
attending the bash was his son, François-Henri, husband of the actress Salma
Hayek and chief executive of the luxury goods group PPR, which was founded
by his father and owns brands such as Gucci.
The influx of serious wealth brought by the Punta della Dogana gallery launch
party boosted property inquiries. Sebastiano Doria, a partner in Views on
Venice Estates, says: “We were expecting a dampened atmosphere at the
biennale but Pinault's party brought an even higher headcount of extremely
wealthy people into town. I had many requests for viewings on the Grand
Canal. One client fitted in a viewing between a meeting with Abramovich and
going to the Dogana party, before flying out in his jet.”
The wealth of these buyers may give the impression that you need millions to
buy a home in the city. But although the best-positioned, most beautiful
homes with top historic credentials do have seven or even eight-figure price
tags, it is possible to acquire an apartment for €240,000 (£204,000).
Britons are buying little pads in large palazzos that they can rent out to
visitors.
In the past few months the property market in Venice has been slow, with many
UK buyers deterred by the continuing weakness of sterling against the euro,
although the sentiment surrounding the pound has recently improved. The most
expensive end of the market has remained almost untouched by the global
downturn and there have been very few distressed or forced sales, according
to Ann-Marie Doyle of Sotheby's Venice Estates.
The Casa d'Annunzio is probably the most unusual property for sale in Venice,
and has such a rare combination of features that it may sell for anything up
to €20 million. Not only is it a complete villa, set in its own private
garden - extremely unusual for the centre of Venice - facing the Grand Canal
and with its own boat mooring, but it is opposite the Peggy Guggenheim
Collection, one of the city's best museums. The rooms are small and have
been decorated with slightly shrunken furniture to fit, giving one the
impression of being in a doll's house. The walls in the ground-floor rooms
are lined with pale yellow silk and the his-and-hers bedrooms are like
old-fashioned Hollywood dressing rooms. The house, which was built in 1897,
is named after Gabriele d'Annunzio, a writer who later became a right-wing
politician.
For something more affordable, but with comparably illustrious associations,
flat-hunters could look at the Gothic Palazzo Contarini, in the Castello
quarter. Open to the public for the first time as part of the biennale, it
contains 17 flats of various sizes that are for sale. The whole place is in
unusually good condition for a building of this age in Venice and the
functionality of the flats should make them eminently rentable. They have
previously been let out as holiday flats.
The palazzo, which centres around a romantic-looking courtyard and has a
walled garden with a central fountain, was built by the Contarini family in
the 16th century. The entrance hall, which has both boat and street
entrances, is cool and dark; the British artist Terry Duffy is exhibiting a
series of paintings in the space. The prices of the flats range from
€240,000 to €2 million. The four-bedroom piano nobile flat has an unusual
square ballroom with 6m-high ceilings and a sun-catching terrace overlooking
the garden, which has its own Gothic staircase.
An extremely grand (but totally rundown) palazzo flat has recently become
available in Palazzo Mocenigo Ca'Vecchia, which is famous for being the
Venice home of the Romantic poet Lord Byron from 1818 to 1819. It was bought
by a German couple only six months ago but, because of “family matters”, the
owners are selling again. The guide price is €5 million as it is or €7.5
million after restoration. The couple have a full refurbishment plan ready
and are willing to oversee the work - with any adjustments requested by the
new owners - and sell it in mint condition. Byron enthusiasts interested in
buying might enjoy a viewing in its present state - it feels moody and,
entering from the water, it is impossible not to picture the poet on one of
his night-time swims.
On the ground floor of the same building, Victoria Farrow and her architect
husband, Peter Powlesland, bought a 463 sq ft garden flat, which used to be
the menagerie in which Byron kept all manner of animals. They bought the
flat for €240,000 five years ago; after their conversion - which includes a
vaulted ceiling and oak flooring, plus a minimalist, modern bathroom - they
believe it to be worth close to €440,000.
Mrs Farrow says that buying the place was the best decision she has ever made.
She also mentions that the process for making adjustments to notable
historic buildings, although slow, does not differ much from the process for
listed properties in the UK.
Developing an entire palazzo as a set of apartments is not unheard of, but it
takes considerable contacts and an understanding of the system to gain
permission to do so. This year the restoration of two sizeable palazzi -
Zaguri and Vendramin-Costa - that sit side by side in San Maurizio square,
near San Marco, will begin. The finished double-palazzo, to be called La
Serenissima, will be ready late in 2010.
Not everyone after a place in Venice needs evidence of history inside the
walls of their property - there is plenty to be had when you step outside
the front door. For many among the international set, the most important
thing is to have a spot on the Grand Canal. Views on Venice Estates, which
works with Savills, has four flats in the top three floors of a palazzetto
that is on the Dorsoduro side of the canal, facing the smart Gritti Palace
hotel. There are no remarkable interior features, and no water entrance, but
there is also no heavy restoration work to be done.
“The seller wants €9.5 million for the lot, so the prices of the individual
flats depend on who buys what. Maybe some buyers will join two flats
together,” says Sebastiano Doria. He likes these apartments because they
make easy homes but still have a top location. Plus they back on to the
quiet, art gallery-dotted alleyways of the Dorsoduro, which offer a hushed
escape from the busier side of Venice.
Contact: for Casa d'Annunzio, Palazzo Contarini and the flat in Byron's
palazzo, visit venicesothebysrealty.com;
for La Serenissima and the palazzetto flats, visit vovestates.com
in association with savills.co.uk.
Francesca Steele reports on buying in Italy:
A two-bedroom flat overlooking Lago Maggiore will cost more than €1 million,
while a five-bedroom farmhouse in Puglia may be as little as €350,000. But
whatever the price, there are a few key differences to remember when buying
property in Italy:
Put everything in writing, particularly your initial offer, known as a
proposta d'acquisto. Once this is signed by you, the vendor and the agent it
is legally binding.
You must pay a small deposit - usually no more than €5,000 - when you sign the
proposta. This will be returned if your offer is rejected.
There are two further contracts: the first involves paying a larger deposit,
normally about 25 per cent, and the second is similar to completion in the
UK.
If the vendor pulls out after accepting the larger deposit, he or she is
legally obliged to return your down payment, plus the same amount again in
damages. Gemma Knowles, an Italian property consultant, suggests putting the
money “into escrow”, which holds the money in an account separate from
the vendor's to make it easier to retrieve.
If you are buying a renovation or a newbuild from a developer, check that he
or she has a fideiussione, a mandatory bank guarantee that will refund your
deposit should he or she go bust.
Tax is 10 per cent of the land registry value if it is your second home, 3 per
cent or 4 per cent if you are living there full-time. Be warned: the comune
(local authority) will check.
You must pay the notary, an independent arbitrator, about 1 per cent, or more
if you have a mortgage. Expect to pay €3,500 for the conveyancer and €300
for an English copy of the contract.
Check that your agent has the proper licence, a patentino.
