When it comes to property markets that have a legendary appeal, competing with Italy is nearly impossible. From its beautiful Mediterranean coastline and Alpine vistas to the incredible sights of Rome where Cleopatra, Caesar and Nero once walked, the history, culture and wonders of Italy make it appeal to investors, holidaymakers and expats alike.
The country’s longstanding appeal, stable economy and ever growing tourism industry combine to inspire confidence in Italy’s property market.
When it comes to countries that rank high on holidaymakers’ must-see lists, Italy tends to trump most of them. From the ancient wonders of Rome to the quaint canals of Venice and the renowned beaches of Calabria, Italy appeals to many. The beautiful geography and varying climate also make Italy a favourite for travellers, retirees and holidaymakers. The historic and cultural draws of this country make it very appealing for investors looking at buy-to-let and resale potential. Whilst it too faces ups and downs from time to time, the Italian landscape has long appealed to people from all over the world and history shows this is not likely to change. The overall attraction of Italy for retirees, holidaymakers and other expats makes it very attractive to investors and certainly inspires confidence in the market.
Italy’s Stable Government and European Union Standing Inspire Confidence in Investors in Italian Real Estate
Although Italy is noted for its very colourful political climate, the government on the whole is quite stable. The republic has been in place for decades. As a founding member of the European Union and one of the world’s oldest cultures, Italy does command respect on the international level. Relations between the UK and Italy are quite strong. In fact, an estimated 5 million Brits make Italy their holidaymaking destination on an annual basis. About 100,000 expats are reported to be living here, as well. This overall stability and status of Italy makes it a favourable climate for investors.
The Italian Property Market is Very Appealing to Investors who Seek Sustainable Areas
The Italian property market is considered pretty solid on the whole. Whilst some areas command higher growth potential and bigger rental returns than others, the demands here remain fairly high. Thanks to its strong tourism industry and natural appeals to expats and retirees, Italian property tends to do very well overall. Rental returns in terms of yield annually range between a very modest 4% to more than 12% in some areas. The growth potential in the southern regions is considered very high right now where holidaymaking is on the rise and buy-in prices are low.
Italy’s Tourism Industry is Long-Standing and Ever-Growing Giving Investors a Strong Strategy
When it comes to European holidaymaking destinations, it is simply hard to compete with Italy. Tourism here is very high and continues to grow on an annual basis. The World Travel & Tourism Council estimates the 2008 value of Italy’s tourism industry at an impressive EUR 211 billion. Estimated growth is about 2% per annum through 2017. Italian tourism dominates a large 3.9% share of the world’s overall demand. These figures are very appealing to investors looking at catering to the holidaymaking market. The potential for buy-to-let properties doesn’t seem to end when Italy is the investment choice. Plus, the demand for holiday homes is generally quite high in this country.
Potential for Italian Investment is untapped with Property Price Growth is Still High in some Areas of Italy, especially the South
Whilst it is very true the property markets in Rome, Venice, Milan and other major tourist areas are well developed, the country still offers some untapped potential. The balmy Mediterranean area of Calabria is just now taking off with development and holidaymaking potential. This is great for investors who want to get in on the Italian market without paying Rome-type prices! Thanks to low-cost air travel potential now available, Calabria is really appealing to tourists, retirees and other expats at the moment. Prices in Calabria for property are considered very favourable for buyers on a budget and the room for growth is incredibly high.
Italy’s Climate and Geography Combine to Make it Quite Appealing to Investors, Holidaymakers and Retirees
Italy’s diversity of geography and climate make this a destination many want to visit or move to. The country is considered mostly mountainous, but it does boast a great deal of Mediterranean coastline and an extensive plain in the Emilia-Romagna region. From the Alps to the wonders of Venice and the beauty of Sicily, the Italian geography appeals to many different tastes. Its climate ranges from very continental, especially in the alpine region, to quite balmy and warm in the Mediterranean. The natural beauty and appealing climates make Italy an attractive location for investment, holidaymaking and full-time relocation.
The Easy Access Italy Affords Inspires Confidence in Property Investors and Helps Keep Tourism Figures High
Italy is very accessible for EU citizens and visitors from all over the world. EU citizens for example, do not require visas and neither to travellers from many other countries. Most major international airports offer direct flights to Italy’s bigger cities. European airports tend to offer low-cost flights as well. In addition, Italy is accessible by train and other modes of transport from many European countries. Even the relatively undeveloped southern regions are opening up to better, low-cost travel options. The ease of entry and access makes this country very attractive for investors looking at buy-to-let and resale potential. Access means holidaymakers can get here with ease and inspecting property is not a huge burden for buyers either.
Cost of Living Tends to Run Lower Than in Other European Countries, Making it Appeal to Investors and of Course Holidaymakers and Expats
Although the cost of living in Italy is higher than in many other investment and holidaymaking hotspots in nearby Eastern Europe for example, it tends to compare quite well with its western neighbours. Many say it costs a great deal less to live here than in the UK, for example. This is especially the case for expats and retirees who learn to shop where the locals do. The southern regions are generally much less expensive than the bigger cities. The lower living costs tend to appeal to second home buyers and expats and retirees looking at buy-to-let or purchase potential. This, of course, keeps the door open for investors using several different strategies to enjoy returns from the Italian property market.
The Stable Italian Economy Helps Inspire Property Investor Confidence
Italy’s economy might not be booming, but it is very stable. It is considered the eighth largest economy in the industrialised world. The country enjoys a EUR 1,854 billion GDP with a steady annual growth rate of just under 2%. Unemployment and inflation are both rather low within the country. The overall Italian economy is driven by tourism, manufacturing and agriculture. When a stable climate for investment is desired, Italy tends to appeal.
The Italian Culture and Welcoming People Make Investing in Italian Real Estate Appeal to Many
Italians are no strangers to holidaymakers and investors. From the bigger cities to quaint countryside villages, the Italian people tend to be very warm and welcoming. When holidaymakers, expats and retirees endear themselves to the people, the reception is spectacular. The fabled culture and people combine to make investing in Italy very appealing. Investors with buy-to-let or resale strategies tend to favour Italy for its welcoming atmosphere.