Sicily property market is starting to overcome its negative image, thanks largely to tourism, which buoyed by the introduction of a number of low-cost airlines, is really starting to take off and could be among the hottest holiday destinations for 2011.
According to Holiday operator Travelzest, with flights to property in Italy's western Sicilian regions cheaper than those to the east of the island, the area gains its place on the shortlist. This in turn is increasing demand for property in Sicily to both buy and rent, which has led to an increase in the supply of new homes.
The west of Sicily is particularly influenced by Moorish culture from the southern Mediterranean coastline. Due to this, styles from North Africa stand alongside traditional 'baglio', thick-walled farmhouses complete with arches and courtyards unique to western Sicily.
The company said that this part of Sicily offers a distinctively different experience from that of the east and is less crowded.
Giuseppe Giliberti, director of Hamptons International said that Sicily property prices have sharply risen in the last few years. This has caused a strong increase in new builds and now the market of holiday homes is quite abundant but the quality is not always at a high standard. Growing tourism levels are being supported by a range of attractions, including an array of beaches, great year-round weather, attractive scenery, skiing on Mount Etna and two golf courses with more in the planning stage.
Giliberti commented: "Over the next couple of years a number of golf courses will open and this is expected to add tremendous appeal."
Oct 30, 2010
Oct 29, 2010
Investors are urged to get rid of Stereotypical view of Italian real estate
Property investors who regard the Italian property market as unsafe and dogged by bureaucracy may be missing a trick, it has been claimed.
Analysing the country's property market, property wire has highlighted a number of positive aspects, often overlooked by buyers. The portal stated that the critical view on Italy from outside is often laced with references to weak rental growth, below average building quality, high tax rates, inefficient bureaucracy and unsatisfactory market transparency.
The website cited according the latest property market analysis from Henderson Global Investors which indicates that there is more to Italy than meets the eye and concludes that international players should look for more in the country’s property market.
Furthermore, public and private debt remains low and there is a real shortage of distressed property on the market, which is keeping values reasonably stable.
However, Stefan Wundrak, European research manager at Henderson Global Investors said that views of the Italian property market can often vary depending on the point of view as foreign players mainly see risks, whereas locals praise the achievement of relative market stability
Meanwhile, the Italian property market is experiencing an influx of new buyers who are taking advantage of the country's low house prices. Prices in the country mean that individuals are paying a fraction of the cost for property compared with 18 months ago and as such the European destination has become more affordable for new potential buyers.
Linda Travella of Casa travella an expert on Italian property explained that there has been a significant rise in the number of individuals purchasing property right at the bottom of the marketplace.
Analysing the country's property market, property wire has highlighted a number of positive aspects, often overlooked by buyers. The portal stated that the critical view on Italy from outside is often laced with references to weak rental growth, below average building quality, high tax rates, inefficient bureaucracy and unsatisfactory market transparency.
The website cited according the latest property market analysis from Henderson Global Investors which indicates that there is more to Italy than meets the eye and concludes that international players should look for more in the country’s property market.
Furthermore, public and private debt remains low and there is a real shortage of distressed property on the market, which is keeping values reasonably stable.
However, Stefan Wundrak, European research manager at Henderson Global Investors said that views of the Italian property market can often vary depending on the point of view as foreign players mainly see risks, whereas locals praise the achievement of relative market stability
Meanwhile, the Italian property market is experiencing an influx of new buyers who are taking advantage of the country's low house prices. Prices in the country mean that individuals are paying a fraction of the cost for property compared with 18 months ago and as such the European destination has become more affordable for new potential buyers.
Linda Travella of Casa travella an expert on Italian property explained that there has been a significant rise in the number of individuals purchasing property right at the bottom of the marketplace.
Oct 26, 2010
Buyers are urged to research before heading to property in Italy
It makes sense to analyze the situation and determine that buying a property in Italy has a huge potential to improve the quality of life!
Mike Whiting, managing editor of airport parking booking site Holiday Extras said that many buyers set themselves up for a rocky road and some ultimately fail to realize their dreams, rather than taking the time to understand what is truly involved in buying a property in Italy. He said many people do not adequately research the background of their destination.
He commented: "It seems that travelers are willing to speak out when it comes to service – whether that is quality of food, accommodation or even the quality of tours and excursions."
He suggested that one way to avoid the issue could be to purchase property in Italy ensuring a level of familiarity and a standard of accommodation that will not drop with time. Travelers may find “one place in Italy can be dirt cheap and another place can be really expensive", however, that some research ahead of departure can identify which areas are among the cheaper. In case anything prevents the holidaymaker from making the most of these lower-cost regions, travel experts also recommends having a back-up source of funding.
Commenting on the country, Property Abroad director Les Calvert said that the changing international property market situation has been advantageous for Italy and the country is now benefiting from not being a market that has traditionally boomed. He commented that the credit crunch has "exposed" some countries, however in Italy things are generally stable within the country during volatile times has made it even more attractive to lifestyle buyers.
Mike Whiting, managing editor of airport parking booking site Holiday Extras said that many buyers set themselves up for a rocky road and some ultimately fail to realize their dreams, rather than taking the time to understand what is truly involved in buying a property in Italy. He said many people do not adequately research the background of their destination.
He commented: "It seems that travelers are willing to speak out when it comes to service – whether that is quality of food, accommodation or even the quality of tours and excursions."
He suggested that one way to avoid the issue could be to purchase property in Italy ensuring a level of familiarity and a standard of accommodation that will not drop with time. Travelers may find “one place in Italy can be dirt cheap and another place can be really expensive", however, that some research ahead of departure can identify which areas are among the cheaper. In case anything prevents the holidaymaker from making the most of these lower-cost regions, travel experts also recommends having a back-up source of funding.
Commenting on the country, Property Abroad director Les Calvert said that the changing international property market situation has been advantageous for Italy and the country is now benefiting from not being a market that has traditionally boomed. He commented that the credit crunch has "exposed" some countries, however in Italy things are generally stable within the country during volatile times has made it even more attractive to lifestyle buyers.
Oct 2, 2010
Opportunities for canny investors
Italian property market is full of opportunities for canny investors despite its reputation of being risky.
Analyzing the country's property market, Henderson Global Investors has stated that while the nation has been hampered by slow economic growth, there is more to the country than meets the eye. Italy has the seventh biggest global economy and is a member of the European Union as well as having a stable level of public debt and a resilient banking system, reports Property Wire. The GDP rose by one per cent across the Euro zone during the second quarter of 2010, which is good news for anyone thinking of investing in Italy.
Bond investors have historically been less worried about Italy because the public debt level has been almost stable for 10 years despite high debt to GDP ratio. The high government debt is counterbalanced by low debt levels in the private sector. Indeed, Italian households have the lowest consumer and mortgage liabilities of all Western Europe.
Stefan Wundrak, European research manager at Henderson Global Investors said that a closer look at the Italian economy reveals a rather more differentiated picture often missed by international observers. Inside and outside views on Italy can be widely divergent. Foreign players mainly see risks, whereas locals praise the achievement of relative market stability.
He commented: "Investors who stick to the caricature of the Italian economy and property market are quite likely to miss a trick."
Analyzing the country's property market, Henderson Global Investors has stated that while the nation has been hampered by slow economic growth, there is more to the country than meets the eye. Italy has the seventh biggest global economy and is a member of the European Union as well as having a stable level of public debt and a resilient banking system, reports Property Wire. The GDP rose by one per cent across the Euro zone during the second quarter of 2010, which is good news for anyone thinking of investing in Italy.
Bond investors have historically been less worried about Italy because the public debt level has been almost stable for 10 years despite high debt to GDP ratio. The high government debt is counterbalanced by low debt levels in the private sector. Indeed, Italian households have the lowest consumer and mortgage liabilities of all Western Europe.
Stefan Wundrak, European research manager at Henderson Global Investors said that a closer look at the Italian economy reveals a rather more differentiated picture often missed by international observers. Inside and outside views on Italy can be widely divergent. Foreign players mainly see risks, whereas locals praise the achievement of relative market stability.
He commented: "Investors who stick to the caricature of the Italian economy and property market are quite likely to miss a trick."
Oct 1, 2010
House prices is expected to decline in Q3 of 2010
Italy's housing market has remained stable, despite falling markets in most other developed countries.
According to the index published jointly by the Bank of Italy (BoI) and the national statistics institute (Istat), House prices in H1 2009 rose by 3% from a year earlier, when adjusted for inflation, house prices rose by 1.9%. House prices rose by an average of 6.5% p.a. (4.1% in real terms) from 2003 to 2006, then by an average 4.6% p.a. (2% in real terms) from 2007 to 2008.
However, Italy's resilience may not last for long as the GDP is expected to contract by as much as 5.5% after shrinking 1% in 2008. Unemployment is anticipated to rise to 10.7% by the end of 2010, from 6.8% in 2008. Nomisma said that Property prices are expected to drop by 7% to 8% and Housing sales are also expected to contract a further 8% to 10%. Nomisma expects the property market to stabilize in 2011.
Italy's mortgage markets are smaller than those in other European countries and this is the reason average housing mortgage loan rates in Italy fell to 3.64% in June 2009, after the ECB eased monetary conditions, the effect of interest rate reductions is likely to be small, since most households rely on personal savings for home purchases.
Jelena Cvjetkovic of Savills confirmed to Countrylife that the cost of property in the country had held firm in comparison to its European neighbors, which have faced severe financial difficulties. She said that In the main coastal and mountain areas, the drop in transactions was moderate and prices fell by only five to ten per cent on average compared to 2008, confirming the passion for holidays in Italy and quality of lifestyle.
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