Tailoring to China buyers
Investment in Italy by mainland firms has created a housing need, writes Peta Tomlinson
Chinese and Italians share a tailoring DNA - one renowned for turning out garments to clothe the masses cheaply and at lightning speed, the other for its haute couture. China's needs might seem far removed from the runways of Milan, but fashion is the thread joining these two nations together - and the impact is spreading to property markets.
Tuscany is a case in point. It has been estimated that there are now about 4,000 Chinese-run clothing factories established in Prato, traditional Tuscan stronghold of the Italian textile industry and, as businesses come, they need housing.
Paul Hudson, founder of buying agency Word & Buyer, says: "There have been a number of mergers and acquisitions by Chinese investors in Italian companies and this is sure to continue. By and large, it seems that the Chinese investors are happy to keep the local management in place. However, this interest in Italian companies is bound to have a consequence in the housing market, as the new owners may well now have a reason to buy a second home here - as well as, say, wanting to buy a prestigious villa as company headquarters."
And Italy has put out the welcome mat. Hudson says much is being done to attract Chinese investors into Italy. "We have found, for example, that the Italian Embassy in Beijing is very willing to make the visa process as smooth as possible for Chinese HNWIs [high net worth individuals], one of the first steps in investing in property in Italy, in effect offering to fast-track five-year Schengen visas for this kind of investor. Chinese investors are already being attracted to the historic, luxurious residences that can be found in Italy and I'm absolutely sure that this trend will strengthen and continue."
But, there's more. Hudson says Chinese property buyers associate Italy with style and good living - the dolce vita - and are therefore drawn to its luxury villas and estates.
The Chinese are not alone. A research report by Knight Frank shows that despite Italy's economic challenges, the world's wealthy still consider it to be one of the most desirable second-home hot spots. Italian prime property has performed better than its mainstream counterpart (dropping 20 per cent since the 2008 peak, compared to a