Italy Property: Buy Me a Condotel in Calabria

It hit me the other day: what a fantastic investment a condotel property in Calabria would be. Calabria is a hot market right now, in terms of international property investment. It offers the chance to buy into the established market of Italy at emerging market prices.

What's more tourism is growing rapidly, so much so that there have been a series of announcements by airlines that they are either starting or restarting flights to the region, including announcements by Monarch Airlines, and Ryanair. The news that the EU plans to invest heavily in the region's infrastructure as part of the 2007-13 EU cohesion plan can only boost tourism and the property market.

Rising tourism fuels increasing accessibility, fuels rising tourism in a self perpetuating cycle, which will ultimately lead to increasing occupancy in hotels and rental properties in the region.

A Condotel, for anyone that doesn't know, is exactly what it sounds like, the chance to buy a condo-style property in a hotel complex. The condo will come under the management of the hotel, meaning it will be part of its mainstream accommodation, and the owner will get an agreed share of the rental income as well as a predetermined amount of usage of the property.

When chosen carefully condotels are a fantastic investment with very limited risk. For example I remember marketing one in Cebu with low asking prices, guaranteed 10% rental yields, 2 weeks usage and a guaranteed buy back for 150% of the purchase price. The trick is to look for a big brand hotel, in a good area. Guaranteed rental yields and guaranteed buy backs are a bonus, because ultimately it is the top notch rental management, and marketing budgets that you are taking advantage of.

This is a market that is begging to be served in Calabria, and likewise in the Italy property market as a whole. I would love to buy a condotel apartment in Calabria, but there just isn't such an opportunity on the market.

This is because the Calabria tourism market is very young as is the property market. However, it is in those types of markets, that tourism and property emerge together, that we usually see condotel opportunities springing up. Watch this space; if or when we see one, we will let you know.

Article supplied by Liam Bailey on behalf of Novrealty, an overseas property agent with a difference; a company focussed on making buying property abroad as easy as it should be.

Like this? Then share with your friends and colleagues!