WHY INVEST IN ITALY

Italy

"Seldom does one find a market like Calabria in Italy, which can be described as an ‘emerging market’ within an established country”

Italy, appropriately fashioned in the shape of a sexy heeled boot, boasts a disproportionate share of all that is stylish and stunning in Europe. The birthplace of Ferrari and Fendi, Verdi and da Vinci, Piaggio and Pinot Grigio, Rossi and Russo, Italy is held in high esteem by culture-hungry globetrotters. Famously described as an ‘open air museum’, Italy tops the tables for UNESCO World Heritage Sites, 41 at the last count, and is the destination of choice for lovers of Renaissance art, Roman ruins and of course romance.

Whilst the renowned cities of Venice, Florence, Milan, Rome, Siena and Naples teem with architectural and cultural treasures, Italy also possesses some stunning landscapes including sweeping vineyards, the snow-capped Dolomites and an enchanting coastline lapped by turquoise seas. Visitors will realise that fast-moving modernity sits comfortably alongside slow-paced nostalgia in Italy, even their ‘fast food’ – pizza – is served in a languid manner.

Like many before, GEM Estates is utterly captivated by Italy and has teased out a region where desirable does not mean expensive when it comes to property, this region is Calabria. Occupying the toe that kicks Sicily, Calabria is virtually undiscovered and can be described as an ‘emerging market’ within this established country. Although Italy rubs shoulders with France, Germany and the UK as one of Europe’s richest nations, there is a huge disparity between the wealthy industrial north and the under-funded agricultural south. As a result Calabrian property is surprisingly affordable.

Calabria is Southern Italy at its most magnificent offering culture, artisanship, cuisine, watersports, history, architecture, skiing in the Sila Massif and year-round mild temperatures similar to the southernmost tip of Spain with summers in the high 30s Celsius. The Sunday Times even put the Calabrian resort of Tropea at number one spot in its Top 20 Beach Holidays report in January 2007. Its appeal is only just beginning to be gently exploited by the tourism industry and before this process gathers pace, second home ownership is both soft on the wallet now as well as being a safe investment for the future.

WHY INVEST IN ITALY

CLIMATE *****

Often likened to Spain’s Andalucia, Calabria basks in a decidedly Mediterranean climate and is in fact the hottest region in the Italian peninsula. Summers are long, hot and dry, reaching 30 degrees Celsius plus, whilst winters feel like spring. The presence of the Sila Massif mountain range creates mini micro climates sustaining a diverse range of vegetation from pine and fir trees down to vineyards and sweet-smelling citrus groves that fruit throughout the year. Rain is a rarity and Calabria may only feel a couple of raindrops between May and September – ideal wine producing conditions. Calabria’s climate is also proven to have significant health benefits. According to an EU study group report, Calabria’s Ionian coast is a “precious resource” for arthritis and rheumatism sufferers with many showing significant improvements after time spent in the region. An indisputable five stars.

ACCESSABILITY ****

Calabria has two international airports, Reggio Calabria and Lamezia Terme. The former – the ‘Airport of the Straits’ with stunning views across to Sicily - is currently undergoing complete renovation and expansion and receives mainly domestic flights. The latter – Lamezia Terme – has recently been restructured to include a brand new terminal with plenty of other improvements to the facility also in the pipeline. Capable of receiving two million passengers annually, Lamezia Terme is well-served by both Ryanair and ThomsonFly from the UK, a flying time of approximately two and a half hours direct. Ryanair currently flies five times a week from Stansted and ThomsonFly once a week from both Manchester and Gatwick. Four stars, choice is limited for the time being, although will surely widen as the region emerges.

ECONOMY ****

As expected from its Mezzogiorno location, Calabria is a ‘poor’ cousin to the wealthy northern regions of Italy and remains largely dependent on agriculture. Key products include onions, mushrooms, cereal crops, figs, chestnuts, wine, citrus fruit and despite its diminutive proportions, Calabria is responsible for a third of all the olive oil produced in Italy. Other sources of income include strong chemical, textile and clothing industries as well as the sale of handicrafts from small family businesses. However, Italy’s government is keen to close this historic north-south disparity and is pledging 100 billion euros-worth of national and EU investment to the south as part of a 2007 – 2013 cohesion plan. Undoubtedly Calabria’s greatest asset is its clean, picturesque coastline and the potential for tourism is phenomenal, a potential which is in the early stages of being realised and will have a positive effect on the local economy. Four stars, an economy on the up but with a long road ahead.

TOURISM ****

Calabria has long been popular with Italians from the north seeking the serenity and sunshine of the south, but international tourism is now appearing on the menu. Holiday resorts are growing up on the extensive Tyrrhenian and Ionian coastlines with towns such as Scalea, Tropea, Maratea, Diamante and Praia a Mare opening their doors for visitors wanting to make the most of the sunny weather, sandy beaches, warm sea and tasty low-priced cuisine. The Sunday Times boldly posted Tropea at number one spot in its Top 20 Beach Holidays report in January 2007. Winter holidays are also firmly on the agenda for Calabria with 35km of cross country ski trails in the Sila Massif open for business. Tourist arrivals in 2005 were 4% up on 2004 and this percentage increase is expected to jump sharply as awareness of Calabria is heightened through the travel and the property industries. Four stars.

PROPERTY MARKET *****

Calabria has an embryonic property market with prices currently pitched unbelievably low for such a coveted nation. Capital appreciation is however tipped to march on up at between 15 and 20% per annum for the next five years due to these low entry level prices in comparison with the rest of Italy and the expected improvements in infrastructure as part of the cohesion plan. There are no restrictions on non-Italian nationals who are members of the EU when buying property. Capital Gains Tax does not apply if you sell after five years of ownership but prior to that profit is subject to Italian income tax of between 23 and 33% dependent on the figure involved. Inheritance tax was abolished in 2001 if property is left within a family and there is no wealth tax in Italy. For five stars, Calabria has the distinct advantage of a credible, non-resident mortgage market, with up to 80% loans to value available from lenders such as Barclays and GE Capital.