Overseas property investment opportunities in Italy

Several areas of Italy have been identified as potential overseas property investment hotspots.

The country's world famous cities - Venice, Milan and Florence – all offer investors the promise of strong returns as property prices in the country continue to increase and rental demand remains strong.

"These areas symbolise Italy both in their historic and spectacular architecture and in their fashionable shopping districts, which are considered to be some of the best in the world," said a spokeswomen for PropertySecrets.com.

In Venice for example, a two-bedroom, fully furnished apartment can be bought for £210,000.

Such a property would be estimated to yield £675 a week in rent, which could prove attractive to investors.

Similarly, in Florence a one-bedroom apartment near the city centre would cost around £403,600, according to PropertySecrets, while an eight-bedroom country house just outside the city will cost £870,000.

Both properties should offer a yield of around 4.8 to 5.8 per cent annually.

Finally, in Milan yields can range from four per cent to 5.2 per cent.

Apartments in the city, from studio to three-bedroom accommodation, can be acquired for a relatively modest £88,000 - £155,000.

"It should be mentioned, though, that Italian law is strongly pro-tenant and as a result the rental market has dwindled in recent years," continued the spokeswomen.

The percentage of rental property in the country has fallen from 25 to 16 per cent since 1993.

"If you are buying to rent, you will be committed to a four-year contract with your tenant in compliance with the 1998 Rental law and as such will be restricted to fixed rental rates," said PropertySecrets.

While this can prove unattractive to investors, it does guarantee four years of income.