The city authorities of Venice, Italy, a well-known Italian tourism spot, are planning to sell up to 18 buildings, some of which have cultural and historical value, due to the consequences of the recession and falling revenues from tourism.
Among the properties which are expected to be put up for sale are three palaces - Palazzo Diedo, Palazzo Gradenigo and the Palazzo San Kashiano. The first of them is located on the Grand Canal, which is the main water artery of Venice.
The total estimated cost of all the properties is €82 million.
The Venetian city budget is funded primarily from tourism and gambling tax income. According to official data, a municipal casino which is situated at famous Rialto Bridge brings in about a quarter of revenues to the city's annual budget. However, since the beginning of the global economic crisis, revenues have fallen off dramatically.
This has resulted in exhaustion of these sources of income for the city, forcing Venetian authorities to put up for sale some of its historical buildings.
It is noteworthy that the recession has not significantly injured the city's residential real estate marketplace, which current prices remain stable.
In addition, there is a traditionally high demand for the Venetian real estate both from the Italians, and among the buyers from overseas, in particular Russia, Middle East, and the US.