LetsTravelRome

In Rome, buyers need time and luck

By Elizabeth Helman Minchilli International Herald Tribune

FRIDAY, NOVEMBER 25, 2005


ROME In most cities throughout the world, someone searching for a new home is looking for certain modern conveniences, comforts such as elevators, parking and an adequate number of bathrooms. But priorities change when the city in question is Rome.

Here, history is the thing. Some people do find homes in former palaces with noble pedigrees, but "only if you are lucky," said Letizia Bucci Casari Pasolini of Liveinit, a luxury real estate agency here. And living in the heart of the city's ancient center usually means that buyers must be willing to make concessions.

"The high-end home market here in Rome is defined by several factors," explained Matilde Cartoni, Pasolini's partner. "First of all, of course, is location. Not only does the property have to be in the historic center, but also preferably in a historic palace. Then everyone also wants panoramic views, but also terraces. And the 20th-century amenities like a parking space and an elevator are also requirements."

The problem is, apartments that match this checklist are few and far between. "If we get a really great apartment, in the center, with a terrace, we can sell it in one or two days," Cartoni said.

One of the determining factors in the lack of high-end properties is the size of the city itself: The historic center is an area only about twice the size of New York City's Central Park.

"While Italian buyers, especially Romans, will consider more residential neighborhoods such as Parioli or Prati, foreigners, and particularly Americans, want to be right in the thick of things," said Benedetta Barendson, of the Ruzzetti agency.

"For foreigners, buying in Rome means buying into the sense of history. That translates into a noble palace, hopefully with frescoes and architectural details. These places are very difficult to find."

Rome's luxury market also differs somewhat from other European capitals. "There is very little movement," Barendson explained. "Anglo-Saxons change their living arrangements as life changes. For instance, the kids will move off to university and so the parents will downsize, putting their original home on the market. Instead, the Italian mentality is quite different and they think of their homes as a nest egg. They would rather hang on to the property, and eventually leave it to their children. This means that some of the best properties never come up for sale."

Up until a few years ago, many considered the Roman high-end market undervalued compared with, say, that in London or Paris. But in the last three or four years the city has become recognized as a great place to live and so prices have risen to level seen in other European capitals.

The Jubilee year of 2000, a holy year of celebration for the Roman Catholic Church declared by Pope John Paul II, saw many of the grimy facades spruced up. And under the last mayor, Francesco Rutelli, many of the city's traffic-clogged squares have become pedestrian havens.

Major art shows now regularly make stops here, as do dance and theater troupes during the city's many cultural festivals. All this, plus a relatively temperate climate makes it a place where many want to have second homes.

The prices being asked for top-flight properties reflect their rarity.

When almost all of the elements come together - view, history and parking - the price is about 12,000 to 13,000 a square meter, or $1,300 to $1,400 a square foot.

But an address in a particularly sought-after historic building or square, or with a large terrace and a panoramic view, can add another 20 to 30 percent to the asking price.

And, "even if you come to Rome, with a lot of money to spend, it's not a given that you will be able to find something," said Paola Di Bari of the San Andrea agency, luxury division of the large Gabetti agency.

The apartments that De Bari deals with are often located on such important squares as Piazza Navona, Piazza di Spagna and Piazza Farnese. "When a property with amazing views comes up at these locations," she said, "they are almost like works of art. The demand is so high that it is almost an auction mentality when determining the price."

An apartment on Via del Governo Vecchio, near Piazza Navona, was recently sold by the Agnelli family of the Fiat auto empire. The apartment, which measured 400 square meters, or 4,300 square feet, had some frescoes and a car space, but no views. It sold for 8 million.

One result of the tight sales market is that it is fairly easy to find a fantastic rental, often at about 15,000 a month.

"Wealthy owners who own the great apartments are much more likely to rent for short term than to sell," De Bari said.

For example, the piano nobile, or main floor, of Palazzo Orsini, which is located within the ruins of Teatro Marcello, boasts frescoes, history and its own private orange orchard.

It belongs to the Origo family and has been rented to visiting Americans forseveral years.

The resurgence of the movie and TV industry, such as the filming in Rome of Martin Scorsese's "Gangs of New York" and, more recently, the 12-part series "Rome," a £58 million, or $99 million, joint venture of the BBC and HBO, also has convinced many owners to become landlords.

"Cinema has brought a lot of rentals onto the market," Barendson said.

"Since these people always want the top, and are willing to pay top dollar, some Roman families have decided to rent out their own homes, going to live in their country villa for a few months, during filming."

When Mel Gibson was shooting "The Passion of Christ," his 2004 release, he had no problem arranging to rent a 400-square-meter apartment, with terraces, in a historic palace not far from Piazza Farnese. But agents say he recently has given up looking for a place to buy because nothing has come on the market that meets his needs.

"We were very discouraged from even looking for something to buy when we first moved here," said Jeanette Montgomery Barron, a photographer who moved to Rome from America with her husband and two children in 2003. "Every one told us that the market was too tight, and it was better to rent."

They now rent a light-filled, 250-square-meter apartment on the top floor of Palazzo Lante, a stone's throw from the Pantheon, but they are considering buying once again. "I don't think the market has changed," Barron said. "But we would now rather live in a more 'Roman,' family neighborhood, like Monti."

The neighborhood known as Monti recently has risen to the top of everyone's list of hot places to live in Rome. The neighborhood, which is decidedly residential, is in the ancient Roman Suburra, the teeming area adjacent to the Forum. Today, the area is defined on one side by Via Nazionale and on the other by the Via dei Fori Imperiali, with the Colosseum at one end. It is a charming warren of small alleys and quaint piazzas.

Less touristy than the areas around Piazza Navona and Piazza Farnese, the neighborhood is still very centrally located.

Tommaso Amodeo, a manager of an information technology company, recently bought in the Monti neighborhood. His 200-square-meter apartment is on a top floor and has a small terrace, but he had looked for more than a year before he found it. "To find something in Rome these days you have to have a lot of patience," Amodeo said. "There is no lack of overpriced mediocre apartments, but finding something truly great is next to impossible, even if you have limitless funds."

Most agents view the luxury market as very stable at the moment. "For the last year the real estate rental market in Rome, in general, has seen a 20 percent drop" in value, Cartoni said. "In theory the economists tell us that this should be reflected, after about six months, in a drop in the sales market as well. In Rome we haven't seen this happen - but since New York and London haven't followed this formula, perhaps Rome sales will stay strong as well."

Di Bari agreed. "Even if there is going to be a general crisis in real estate - which everyone is predicting - the luxury won't be affected," she said. "The prices will keep going up."

posted by Les Sheppard @ 2:45 PM