Construction sector boosts economic growth

Overseas property investors are returning to established property markets such as Italy as Italian construction sector is playing a major role in driving economic growth.

Finance Minister Tommaso Padoa-Schioppa said that the $1.8 trillion Italian economy will expand between 1.3 percent and 1.6 percent. Roberta Talotta from EC Harris stated that the industry creates nearly a tenth of the country's GDP. She added that construction sector has been very important to the economy in the last decade.

Foreign Property Buyer has reported that Italy continues to be a popular investment location partly because of its advanced infrastructure. The booming construction sector is likely to have a positive effect on the property market and there is expected spike in real estate prices in next few months. Last year property prices in certain regions like Calabria have risen by about 40 per cent.

However, the Italian government had legislated to thwart the country becoming overdeveloped, hence preserving the factors that draw visitors and drive the property market. Irish newspaper the Mayo Advertiser highlighted the rules preventing the construction of overly large buildings making Italy an "attractive proposition” for many overseas investors.