Secrets of the lake

The Lakeside Villa by the village of Bellagio

Buying the home of your dreams in the Italian lakes, particularly one as desirable as Lake Como, is far from straightforward. The process involves battling red tape, idiosyncratic property laws and, most challenging of all, an impenetrable sales market which operates heavily on local knowledge and “off-market” sales.

So the €25m “on-market” sale of Lakeside Villa is all the more unusual. “Traditionally we would sell this off-market,” says Giles Hannah of Christie’s International Real Estate, “but times have changed and this is a luxury purchase. If it were in a city, we would not have to advertise it so much.”

The elegant six-bedroom property sits in private grounds overlooking the village of Bellagio on the western shore and comes with a rare boathouse, helipad, breathtaking views and access to the shoreline.

The last time a similar villa came on to the market was the former home of the fashion designer Gianni Versace, after his death. The villa sold for €35m, two-and-a-half years ago, with minimal publicity. “There has not been a comparable sale since, or at least it has remained very hush-hush if there has,” says Gemma Bruce of Aylesford International.

The on-market sale of Lakeside Villa is symptomatic of the state of the market. Since 2009, prices have fallen between 15 per cent and 20 per cent, according to Knight Frank, though they are steadying now.

“There is not a glut, but more has come on,” says Rupert Fawcett, head of Knight Frank’s Italian department. “Some vendors have become a bit more realistic about the price, and buyers are looking again.” However, some agents feel there is more choice than you think, if you know where to look.

“We are awash with private [off-market] opportunities [to buy] but the desire for secrecy is as great as ever,” says Paul Belcher who runs Ultissimo, a development and property search company. “This is driven by concerns over financial affairs being known to the local [tax] authorities or neighbours,” says Belcher.

The Lakeside Villa, overlooking Lake Como, is on the market for €25m

These methods can be daunting and so, even though period properties often have better positions, views and larger gardens, many buyers prefer the straightforward, clear-cut purchase that new-build offers.

Developer Ultissimo are ticking both the period and new-build boxes by creating two new conversions from Villa Peduzzi, which dates from 1909. When the refurbished art nouveau Liberty Villa, with tower, terraces and frescoes, finishes early next year, it will consist of two new five-bedroom apartments. The villa has high ceilings, well-proportioned rooms and sits on the hillside in three acres of grounds with views over the lake and mountains, next to the village of Pigra. Prices are €3.3m and €3.8m respectively.

“The trick is to find something set back a bit,” says Belcher. “If it is elevated with endless views, it can be half the price of the same thing right on the lake,” he adds.

Prices around Lake Como vary between €2,000 to €15,000 per sq m, with prices becoming steeper the closer you are to the lakeshore. The average price for a villa is roughly between €1.5m and €3m while small apartments aimed at the international market start from around €350,000 (though it is possible to buy something nearer €200,000, higher up the mountain sides).

“An apartment in the €700,000 to €1m bracket is a good investment as you can rent it out, but it has to be within two kilometres of the lake,” says Linda Travella, who has been running Casa Travella agency, specialising in Lake Como for over 20 years. €1m buys a high end apartment with an indoor and outdoor pool, garden and lake view, while a three-bedroom apartment with two bathrooms, views and a pool lets for €500-€700 per week in high season.

Many agents now advise buyers only to purchase completed apartments and not buy off-plan, because “developers are often getting into difficulties these days”, says Bruce. “Even if there is a promise your apartment will be finished by a certain time, there is no guarantee that the swimming pool and landscaping will be,” she adds.

Julia Killingbeck, former managing director of a recruitment company in London, is one of a growing number of retirees who have decided to move to Lake Como. Killingbeck bought a three-bedroom apartment in Sala Comacina four years ago, and has “not regretted it,” she says. The apartment also comes with a garage, as parking can be very difficult, if not impossible, during high season. Killingbeck has views of the lake as well as plenty of light. “In the [neighbouring] village of Brienno they have some very sweet properties which are significantly less pricey and that is because in the winter they have three months of shade – there is no direct sun,” she says.

She paid €500,000 four years ago when the exchange rate from sterling was better, and estimates that the same apartment would now cost €650,000. “It is a place of amazing contrasts. There are people living behind us with no electricity, she says. “St Moritz ski resort is a two-hour drive away, yet we live in a place that grows olives.”

Of all the Italian lakes, Lake Como, which is the third-largest, has the easiest access to the motorway. The village of Como on the southern tip is only 40 minutes from Milan’s Malpensa airport, and an hour from the city. Most buyers stick to the western shore and avoid anything too close to the road. The eastern shore is “harder to access,” says Belcher, who adds: “The western shore stays open throughout winter and the facilities are much better.”

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Buying guide

Pros

● Impressive views

● Easily accessible

● Friendly and welcoming local people

Cons

● A convoluted and difficult buying system

● Care is needed to ensure you don’t buy a home which is shaded for several months

● Lack of privacy – the height means that a home in the wrong position could be overlooked

What you can buy for

● €100,000: a one-bedroom chalet with garage

● €1m: a spacious three-bedroom villa with pool and lake views in the village of Gravedona on the northwestern shore

Contacts

www.aylesford.com, tel: +44 (0)20 7349 5100

www.casatravella.com, tel: +44 (0)1322 660988

www.christiesrealestate.com, +44 (0)20 7389 2631

www.knightfrank.com, tel: +44 (0)207 629 8171

www.ultissimo.com, tel: +44 (0)20 3178 4975