Italy

Despite its popularity as a holiday destination, Italy has long lagged behind Spain, France and even Florida as a target for second and investment home buyers. Although Britons have been purchasing property in “Chiantishire” and other parts of Tuscany for decades, they have only begun relatively recently to look at other areas, such as Umbria, Liguria, Le Marche and Puglia. Traditionally, most of the buying interest has been in old rural properties, often in need of loving – and expensive – renovation, with off-plans accounting for only a small section of the market. Sales of Italian properties to foreigners grew sharply in 2005, and although Germans and Americans have been the most active buyers – making up more than 40% of the total – Britons followed with a 15% share. The property market, itself, has been rising, although more cautiously than its French and Spanish counterparts. It is likely to continue the upward trend, albeit at a more modest rate, because of the poor performance of the Italian economy, which has been the slowest growing in the European Union. Country villas or flats in historic cities such as Venice, Florence or Rome can make lucrative short-term rentals, with relatively high occupancy rates.

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