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Wednesday, 24 September 2008 00:00 |
Italy is one of the most popular countries in the world for tourists and this fact alone means that there is high demand among international investors for property in the country, particularly in southern areas such as Calabria.
While much of the global property market has suffered as a result of the credit crunch, Italy's residential buy-to-let sector remains strong.
According to international property consultant Knight Frank, prices grew by 5.4 per cent in the second quarter of 2008, representing a promising long-term investment.
Tourism boosting Italian markets
Figures from the UN World Tourism Organisation (WTO) suggest that Italy's popularity with holidaymakers is stronger than ever. The WTO estimates that 40 million international visitors arrived in Italy in 2006, making it the fifth most popular country among tourists.
What's more, tourist arrivals continue to grow - they increased by 17.2 per cent in 2007 - and are feeding into the holiday letting market where demand for rented accommodation is gaining momentum.
In the south, the emerging region of Calabria saw 213,000 Italian visitors alone in 2007, and many more internationals. With such high demand for holidays in the area, it is no wonder that prospects for buy-to-let investments at the 'toe' of the Italian peninsula are so high.
Incentives and infrastructure investment in Calabria
Prime minister Silvio Berlusconi pledged to remove the main Italian property tax during the summer elections, a move which would make the purchase of property in the country a much more attractive proposition to real estate buyers.
As a further boost, any long-term investor who owns an Italian property for more than five years is exempt from paying capital gains tax on any profits made from rent or sale.
Calabria is one of several areas in Italy that is also seeing heavy infrastructure investment in order to encourage further economic growth and property development.
A proposed suspension bridge across the Strait of Messina - connecting Calabria and mainland Italy with the island of Sicily - will also open up the area, improving accessibility alongside new international services from Ryanair and EasyJet.
Almira Chiang, a local property agent in Calabria, told industry news website Property Wire: "Whatever happens, the area is set to get more and more visitors and the government has promised to invest in the infrastructure."
Diverse opportunities in Calabria
Much like its varied terrain - it boasts beautiful coastlines and rugged, mountainous plains - Calabria promises a wide assortment of properties, from idyllic rural villas to off-plan developments around urban areas such as Reggio Calabria, Catanzaro, Cosenza and Lamezia Terme.
Calabria has also become a popular destination for golf properties and is currently undergoing development of a new 18-hole course - which will boast "dramatic vistas" such as mountains, rolling hills, the ocean and ancient castles, according to course architect Rick Jacobson - as well as several resorts.
Paul Treherne, director of Sheffield-based property investment consultancy Independence Properties, explained that the attraction of the southern regions of Italy is that property prices are much lower than in the rest of the country but will grow to catch up.
"Calabria shows all the pricing characteristics of a genuine emerging market but with the consumer protection of a mature 'westernised' property market," he concluded. |
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