Published: 9th September 2013
Throughout the past 40 years, there has been a steady stream of investment in property in Italy, predominantly from other major European markets, but also from investors in the US and from the Far East. The predominant focus of this type of investment was the second home/holiday home market, with investors looking to purchase restoration projects throughout the beautiful countryside in Tuscany and Umbria.
Today however, the Italian real estate market has evolved, with new and emerging regions in the south of the country becoming the primary drivers of the Italian property market. Today, property in Calabria, Apulia and Sicily are high on the priority list of many international property investors who are seeking to capitalise on the 10-20% growth rates experienced in the region in recent times.
So what factors have driven this increase in demand?
There are two key factors which have brought about this increase in demand for property in the southern Italian regions. Firstly, the increased accessibility (and subsequently tourism) that is being experienced in the region. The advent of the cheap flights industry has brought an increasing number of tourists to destinations in Calabria, Apulia and Sicily, many of whom would previously have only visited the more traditional tourist destinations in the north of Italy.
The second factor which brought about the increase in interest in property in the region are the low prices which can be found throughout the region. Throughout the south of Italy, property prices are consistently lower than those found in the more industrialised and commercialised areas in the north. These low prices allow for increased levels of capital growth, and such hold a strong appeal to investors looking for emerging markets within traditionally strong economies.
Following on from this increase in interest in the south, there has been a large amount of development in the region, as developers looking to capitalise on the interest from investors.