Innovative property investments
Investment Property in Italy
Investment Overview
The property media does not feature investment property in Italy as frequently as one might expect from such an established and popular tourism destination, compared to some other destinations in Europe where low property prices are drawing attention from investors. As an established second–home destination, the price of property in Italy’s most popular areas is comparatively high, so the potential investor needs to look into the lesser–known parts of the country in order to find the investment property in Italy with the greatest potential.
North–south divide
Italy has a geographically divided economy. The north of Italy is generally more prosperous while the south is more dependent on welfare and has high unemployment. The north–south divide in Italy’s economy extends to its property market, and many of the opportunities to buy cheaper investment property in Italy are to be found in the south, in the areas considered to be the country’s emerging investment and tourism destinations. These regions are comparatively undiscovered by overseas tourists and home buyers, despite having stunning scenery and now being tipped to rival the current Mediterranean tourist hotspots.
Mature market
Property throughout most of Italy is not as cheap as in many of the other European destinations considered popular second–home destinations. The most popular areas for second–homes are naturally among the most expensive, such as Tuscany, where the high demand for property over many years ensures few bargains now remain. In such areas, the highest demand to rent or to buy tends to be for older ‘character’ properties, which limits the investment potential of buying into new developments unless it is in one of the ‘up–and–coming’ areas.
Popularity of home ownership
A high proportion of the population in Italy owns their own homes and, of those, many also have second homes that they use for holidays. Property in Italy was attracting domestic and overseas buyers before the recent trend for buying ‘a place in the sun’ for investment or lifestyle purposes really emerged. Real estate has proved itself to be a good investment for these owners, as price growth has been steady, if not dramatic, and the rate of property growth has been comfortably ahead of the rise in the cost of living. This solid demand for property – based on the appeal of the country rather than in anticipation of an investment boom – suggests steady growth will continue.
Related items
Documents and Reports
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Italy property investment report (399Kb) |
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