Southern Italy offers "strong rental potential"

Southern Italy is set to see a wave of activity in the property market over the coming months despite the credit crunch, it has been claimed.

Incalabria, a property firm specialising in the region, stated that despite the economic downturn, there is no shortage of buyers looking to purchase property.

"People's underlying enthusiasm to invest abroad has not been dampened," director of the firm Dennis Onstenk remarked, adding that the company is in the process of adding to its portfolio in order to meet demand.

He noted that the weather, coastline and "strong rental potential" makes the region attractive to buyers, adding that prices mean a beach-front property can be purchased for "less than half" of the average price of a home in the UK.

Mr Onstenk's comments support those of Liam Bailey of Property Abroad, who recently stated that investors are increasingly focusing on established property markets - like Italy's - in the wake of the credit crunch.