Italian property market continues to bloom

The Italian property market is witnessing its eighth consecutive year of growth, with no sign of price falls in sight, according to analysts Amberlamb.com.

The country has seen a €30 billion increase in the value of its real estate market over the last six years, with growth strong each year.

In 2003 the country saw growth of 10.6 per cent in average house prices, followed by 8.7 and 7.1 per cent growth in 2004 and 2005 respectively, followed by 6.3 per cent in 2006.

This year's growth is expected to follow suit.

"So far in 2007 the market is still supporting overall capital appreciation and many experts predict that while the rate of growth has slowed, the fundamentals are in place for there to be a chance of growth for at least the next two years," said Rhiannon Williamson, director of Amberlamb.

Cheap flights to the country are shaping some of the popular areas for overseas investors to place their cash.

"There are a number of areas of the nation being marketed today that were previously largely inaccessible – Calabria, for example," continued Ms Williamson.

"Calabria is now being serviced by cheap flight operators – as are a number of other Italian regions – and it is this increased accessibility that's dictating which areas of the nation are now worth looking at."

Tourist areas – including Rome, Venice and Florence – are also consistently popular.

"The rental market in these locations is exceptionally attractive: high yields, massive demand, excellent occupancy levels and the ability to target the tourism market as well as the corporate let and long-term tenancy market all make buying-to-let in the likes of Rome, Venice and Florence sound choices," explained Ms Williamson.

However, prices in these cities are out of reach of the majority of investors, perhaps shifting focus to other, more affordable, areas.

"Targeting up-and-coming areas is more popular with those seeking an affordable entry point and decent and realistic capital growth and rental yield opportunity," concluded Ms Williams.