Italy Investment Growth

Italian property offers some encouraging signs for capital returns today. Find out below the factors that are bringing about such a positive growth curve in Italy’s investment property market today.

With property prices still low compared to many other Mediterranean locations, some areas of Italy are establishing themselves as promising new investment opportunities. While the cultural cities of the northern half of the country offer property at higher prices but with good capital returns, southern Italy is today gaining strength as a very promising emerging investment market.

The ENIT International Observatory Survey indicates that Italian tourism sales are up by 21.3% in 2006. Cultural tourism has always been popular in Italy, while interest in spa holidays in peaceful locations is now experiencing unprecedented interest. Italy’s tourist industry growth is also directly related to the increase in low cost airlines now serving Italy, making holiday homes and buy-to-let investments more popular than ever before.

Current trends are moving towards rural property investment where a home for renovation can still be picked up for as little as 60,000 euros. Interest in southern Italy as a tourist destination and rural getaway is gathering up steam while prices remain considerably lower here than in the rest of the country.

Capital Growth

According to IPD (Italian Property Index), in the five-year period between 1998 and 2002 Italian property prices rose on average by some 40% (an average of around 7% per year). Property prices in major cities tend to increase more slowly (3.1% in the first half of 2003) while in 2005 average capital growth for property in Italy stood at 9%.


EU integration indicates a sound infrastructure and a healthy tourist economy where investors are enjoying solid capital returns while remaining within easy access to their investment. Economists describe Italy as a strong economy and it is ranked the fifth largest economy in terms of USD exchange rates. It belongs to the G8 industrialized nations and maintains close trade links with all EU member countries.

Reasons Why Italy is an Intelligent Property Investment Location

  • No capital gains tax on profits from Italian property, creating maximum returns on investment.
  • Possibility to cut purchase costs in half by becoming a resident.
  • Prices remain relatively low, compared to many EU destinations.
  • Capital growth of 20% per year in some locations. Many new markets in Italy still remain undiscovered and ripe for investment.
  • Possibility to renovate beautiful, old Italian houses into fabulous residences that earn high rent in peak season.
  • Italy is at the hub of the low cost flights revolution, forever enhancing its strong tourist industry.
  • The Italian government offers investors grants to reform rural.
  • Italy has pioneered property tax reforms, offering great opportunities for the rural renovator, including substantial VAT discounts.
  • EU member country.
  • Economic and political security.
  • Only 2 ¼ hours direct flying time from UK.
  • Abundance of culture, history and magnificent architecture.
  • Stunning variation in natural beauty, from lakes, mountains and lush vegetation to rugged or sandy beaches.
  • Warm Mediterranean climate.
  • Recreational activities to cater for all needs, from skiing, hiking or beach holidays to sightseeing and cultural activities.
  • Dream lifestyle, modern systems and friendly people make Italy an easy relocation destination.

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