Finding Affordable Real Estate in Venice, Italy

Barely a mile or so away lies the majestic heart of Venice with its prestigious Euro 1million-plus palazzo nobile penthouses.

Yet here, just Euro 250,000 can buy an apartment, a short vaporetto ride away from St Mark's Square and Basilica, Palazzo Ducale and the Bridge of Sighs – a fraction of the telephone-number prices you would pay in these more popular areas. Welcome to Dorsoduro. Welcome to affordable Venice.

The world has for centuries been captivated by the romantic magic of Venice. But buying a property here has become the preserve of the wealthy. Indeed, the value of real estate in Venice have been so astronomical for so long that just 60,000 people live here – barely a third the city’s population half a century ago.

Buyers are thought to outnumber available properties in Venice by as much as four to one, a trend that has put further upward pressure on prices.

However, many discerning investors are still investing in Venice property. But the difference is that they are looking away from the heart of the city and into outlying areas.

Venice is split into six districts – Dorsoduro, San Polo, Canareggio, Castello, Santa Croce and San Marco. The popular Dorsoduro is one of the most affordable. This is the southernmost of the city’s districts, yet it is not lacking in affluence, especially to the east of Dorsoduro. Here, one finds the Accademia art gallery, the Peggy Guggenheim Museum and a growing number of artists, writers and moneyed foreign investors.

A development of 28 contemporary apartments near the Accademia gallery came on the market last year, with prices from just Euro 260,000. The complex includes a 90sq m communal garden and a private chapel. Elsewhere in Dorsoduro, Euro 300,000 can buy a 40sq m pied-a-terre a few yards from the Zattere promenade.

Meanwhile, up-and-coming Castello is another affordable area attracting increasing interest from foreign investors. Venice’s largest district – named after a giant fortress than once stood here to protect the city against sea invasion – lies just to the east of St Mark’s Square yet remarkably free of tourists. Euro 300,000 will get you a two-bedroom 75-80sq m apartment in Castello, although it may need some renovation work.

Venice has 117 outlying islands and there are affordable bargains here too. In Burano, six miles north-east of the city centre, Euro 450,000 should get you a house rather than just an apartment. Torcello, immediately north of Burano, and Tellestrina Chioggia are also worth a look from a property investment viewpoint.

With some 14 million visitors a year, Venice will always be immensely popular with tourists, not just for its own charms but also thanks to the pulling power of the Venice Film Festival, which attracts many Hollywood stars in September; the eight-day Carnevale in winter; and the Biennale, a modern art exhibition held in June.

Therefore, owning real estate in Venice is always a great investment with rental yields high all year round. A two-bedroom apartment can go for up to €1,200 a week while really prestigious properties fetch up to five times that. Bear in mind, though, that rental potential may dwindle the further away from the heart of the city you go.

Another popular option is to look beyond Venice and to the historic towns and cities within the Veneto region, some 45 minutes away by train.

Such towns include Verona, one of Vento’s most important tourist and cultural destinations, and Vicenza, a Unison World Heritage Site. Meanwhile Padova, just 20 miles from Venice, is a lively, attractive and historic university city. Then there is Treviso, a remarkably preserved medieval city famed for its wine and cuisine. In Treviso and Vicenza, Euro 250,000 should stretch to a spacious, two-bedroom town centre apartment.

Padova, in particular its historic centre, is perhaps the priciest of these satellite cities. Here, an 80sq m two bedroom apartment will come with a price tag of around Euro 400,000 – less if restoration work is necessary. However, the countryside around the city is truly breathtaking and in areas such as Abano Terme spa resort, Euro 250,000 should get you a two or three-bedroom property.

Adriana Giglioli is a real estate expert with Homes and Villas Abroad.com, which offers more than 2,500 stunning examples of property for sale in Italy.