The romance of Italy lures Brits

Italy is a country full of treasures. From the man-made wonders of the Roman ruins, Renaissance art and regal architecture, to the natural enchantment of the majestic mountains, placid lakes and idyllic islands. With stylish cities that never sleep and narrow pebbled streets filled with the perfume of the Bougainvillea, lemon trees, and olive vines – Italy is synonymous with romance. Its history, culture, climate and cuisine seduces just about everyone. One can indulge in the pleasures of good food, good wine and great shopping, relax on the untouched sandy stretches on the southern coast and Sardinia, ski in the Alps or potter around the art galleries and explore the works of Michelangelo. Italy’s attractions really are endless.

Even more appealing for British property buyers is that Italy is a country of value as well as beauty. The cost of living is comparatively low, although of course this differs greatly between the prosperous north and central regions of Italy, and the relatively poor south. The cost of living in the major cities is similar to Britain although generally Italy has a slightly lower cost of living than northern European countries.

The health service and transport infrastructure are also excellent, and due to stricter planning regulations - compared to many other European markets - Italy has kept its charm and remained relatively unspoilt. What’s more there’s also the advantage that there is no capital gains tax on property profits. Sarah Child, property agent at Each Property says, “Italy offers some stunning scenery and a vast choice of properties. With cheap flights to many of its cities and with Italian property prices still reasonable you can see why many Europeans are heading to Italy to buy a second home. Italy has long been a firm favourite with British buyers who love the culture, food and history that Italy offers in abundance.”

BELLA ITALIA

Tuscany may be the first place that springs to mind when Brits decide to purchase property in Italy as it has been a favourite with British expatriates for many years. Demand is especially strong for country houses and rustici (farm houses) situated in the Lucca, Florence and Siena triangle, but this high demand and the availability of cheap flights to Pisa means that it is now an expensive choice.

Neighbouring Umbria is often cited as a cheaper alternative, but prices there have shot up in recent years. Due to its popularity with tourists the holiday rental market in these regions is strong. A three-bedroom property is likely to cost upwards of £400,000. Le Marche is being heralded as the next big thing as far as the property market is concerned, although the region is still not an established tourist spot. Italy’s hidden gem is perfectly situated between the Adriatic Sea and the Apennine Mountains. This enchanting rural area boasts rolling hills, olive groves, medieval towns, snow-capped mountains and long sandy beaches. The area boasts an array of cultural and culinary delights and a wealth of art and architecture within its borders. Le Marche has been called the ‘new Tuscany and Umbria’ but the region is unique, with a character all of its own, due in part to the great variety of natural landscapes.

Not only is Le Marche a cheaper option; there are plenty of beautiful old houses to be restored, an appealing option in Italy, as grants are available to reform rural beauties. The average price for a two-bedroom house in Le Marche is £128,333, but a two-bedroom house in need of restoration can be found for as little as £40,000. “The Italian Lakes, Tuscany and the Amalfi coast have long caught the eye of discerning UK buyers; but bargain hunters are now sniffing around Calabria in the south of Italy – encouraged by improving roads, and cheap flights to Lamezia. This is a glorious region even though the property market is less developed and prices are low”, explains Child. “Remote and rugged, Calabria forms the ‘toe’ of the Italian peninsula. A world away from the Baroque churches, lavish art galleries and gently rolling hills of ‘traditional’ Italy, the region offers a very different experience. Undiscovered by tourists until relatively recently, Calabria has successfully retained a real sense of ’southern’ authenticity and over the years has made little concession to modernity. Calabria is mostly an agricultural region with very little industry.”

Calabria has not yet found its way onto the mass market radar of northern European holiday home seekers and overseas property investors so there are still some real opportunities to find a fantastic property. Child says that in Calabria £40,000 to £60,000 will buy you a beachfront apartment with two bedrooms.

Southern Italy is certainly an attractive option for sunseekers and property hunters after real estate value. Prices are substantially below those in Tuscany. Many investors are spreading their wings further south, where, if anything, the beaches are emptier and more pristine – particularly around Chia and Villasimius. What makes the south even more attractive is that the Italian government offers a generous series of tax breaks and subsidies for those who buy in undeveloped areas. “Each year the higher property prices in the north of Italy migrate further south as property investors seek out value for money”, says Child.

The rental market is also developing well, thanks to the arrival of the low-cost airlines, which now fly direct from Britain to Pescara, Bari and Brindisi and also the Sicilian capital, Palermo. Puglia, the heel of Italy, is becoming very fashionable. There is a good range of properties for sale in Puglia, including Baroque town houses in the port towns of Lecce and Brindisi. With the arrival of low cost airlines, demand for property for sale and to rent in Apulia is set to soar this year. Underdeveloped and neglected by the government, one should nevertheless consider buying property in Basilicata. With craggy mountains and beautiful beaches, Basilicata has superb untamed countryside and Greek and Roman ruins aplenty. This is rugged, unspoiled Italy and has amazing bargains to reward the adventurous.

Leaving the mainland, Sicily has an extraordinary diversity of houses, farms and apartments for sale – an architectural cornucopia of baroque, medieval, Renaissance, Greek and Islamic buildings. Southern Italy has experienced problems with organised crime and unemployment in the past, but there are promising signs that this is changing. “The local and regional authorities recognise the potential that tourism and holiday home ownership has to push these region’s economy forward”, explains Child.

For rental potential the larger cities are the most obvious choice. When it comes to finding private residences in the bigger cities in Italy, apartments remain one of the most popular types of residential property bought and sold. Apartments in Rome, Florence, Venice and Milan all have good long-term let possibilities – most probably to Italian tenants – although you should be aware that Italy is a highly bureaucratic country. If one manages to find a central apartment within easy reach of historical attractions, short-term lets to tourists should provide good rental income. Although most people who choose to buy property in one of Italy’s famous beautiful cities do so through sheer love of the city rather than to make money.

Once decided which part of Italy to buy in, the next step is to decide the type of property to own. There really is something to suit every taste. Restoration projects, historic houses and, lately, vineyards are all highly sought after. “There’s great opportunities to renovate great old houses into fabulous residences that earn big money rent in the high season”, says Child.

Sales of Italian property to foreigners grew substantially in 2005, and the Italian property market seems to moving upwards – albeit slowly. But bargain hunters shouldn’t rule Italy out – especially those attracted to the prospect of a restoration project – and should look to regions like Le Marche while beach lovers should seriously consider Sicily.
However, Linda Travella at Italian property specialists Casa Travella insists, “There has been a marked increase in people buying property for investment and property that is ready to move into rather than the traditional restoration projects which are so often associated with the Italian property market. Clients have less time but more disposable income. If you are looking for a bargain at the moment then the best places to look at are southern Le Marche and Abbruzzo. However the classic favourites such as Como and Maggiore are still doing really well.”

Italy is still more likely to attract those who wish to buy a holiday or retirement home than the serious investor as entry prices are high compared to some emerging markets. Most buyers are investing for the love of the country rather than for capital gain. And who can blame them? Rather than wanting a second home or retirement property, many Brits buy simply because they want to live in the country. Italy’s certainly one for those after the finer things in life.

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The romance of Italy lures Brits

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