Currency movements stimulates holiday homes in Italy

Italy property market is still doing well as more Brits have been looking to the Italy property market in recent weeks as the credit crunch continues to hit the UK hard, the pound has gained strength against the Euro, and for those who look for property investment abroad, the temptation is proving too much.

According to the Financial Times reports, Mortgage agents and foreign exchange providers have noted that the strong pound and shaky UK house prices stimulates fresh hunger for second homes abroad with the Italy property market being one of the beneficiaries of the trend. Mark O'Sullivan, Director of Currencies Direct told the paper: "We have seen a dramatic increase in the amount of money entering the international property market in the last few weeks." He added that buyers have been given a "confidence boost" by the improvement in sterling.

According to research from foreign exchange specialist Moneycorp, Nearly 800,000 Britons already own a second home abroad, up from 550,000 three years ago, and this figure is expected to soar in the coming months as consumers return from holiday having found their dream place in the sun.

Calabria was identified recently by Homes and Villas abroad as an emerging property hotspot in the country and it is expanding its operations in the Calabria region, stating that this is a major area of tourism growth. Marketing manager for the firm Ainsley Okoro commented: "Foreign tourism has really taken off in Calabria in recent years and with 500 miles of beautiful shores and year-round sunshine that comes as little surprise." The Calabria region was also highlighted as an up-and-coming area this month by Property Showrooms, along with Abruzzo.

In news that many interest those thinking of investing in the Italian property market, Lonely Planet author David Else told Go Travel Insurance stated that British holidaymakers are not staying at home despite the credit crunch. He commented: “in this period of crisis, the only change is Instead of a three-week holiday to Tuscany, it might be two weeks. Instead of three-star they’ll go self-catering."

The latter trend may encourage property investors, as this could open up opportunities to rent out self-catering holiday properties in Italy.