Italy has always been a popular destination for property investment speculators, with a high quality of life, competitive prices and favourable weather helping to ensure that it is able to boast a strong tourism market and reasonably safe economic background.
The Italian property market tends to be a good choice for UK-based investors, who view it as a cheaper and less commercial alternative to comparable sites in France or Spain.
And this growing popularity has been seen in a number of areas over the last decade, where values have enjoyed steady increases and capital growth as more people begin to look at real estate in the country. Italy has always been a favoured destination for holiday home buyers and Buy to Let investors
, with tourism making up a large percentage of the country's economy.
However, as with a number of European destinations, Italy was affected by the global economic crisis and as a result house prices tumbled, although many experts are now predicting that the the worst is over.
What Does the Future Hold?
According to Linda Travella, of Italian property agent Casa Travella, there has been an influx of new buyers to the country's real estate market looking to take advantage of the current low prices, with values meaning that Italy is now even more affordable.
"Primarily cash-rich investors, who maintained their 'cash is king' ethos during the recession, are the biggest investors, opting now to purchase whilst prices remain favourable," she explained.
Furthermore, earlier this week, property portal Rightmove revealed that the weakening euro is helping to boost interest in property in eurozone destinations, with Italy among the top five countries which had seen expressions of interest rise.
However, fears over Italy's national debt are unlikely to fill investors of a nervous disposition with confidence amid concerns that the property sector could experience a double dip and values could fall further.
Having said that, individuals looking for resale opportunities and Buy to Let investors
in the country will be boosted by the fact that it remains one of the world's most popular tourist countries. With the sector one of the backbones of Italy's economy, buying in certain regions is sure to boost the chances of achieving a successful long-term real estate investment
. Sicily remains a favoured destination, while infrastructure and transport improvements in the last few years in the Ragusa and Catania areas mean they could also be worth considering.
- Wednesday 16 June 2010