Tuscany
Italy's best known region is probably Tuscany, with the areas
around Pisa, Siena and Florence being the first place many UK
residents think of when looking for second homes. The blankets of
countryside and quaint hilltop towns and villages throughout the
region show what life was like in ages past – this area is truly
the heart of Italy is the region home to Chianti wine. However,
high demand fuelled by the availability of cheap flights to Pisa,
means that Tuscany is now every bit as expensive as it is lovely,
with prices having risen by more than 40% since 2000. Two-bedroom
townhouses and apartments start at around £50,000, while a basic
four-bedroom farmhouse here costs around £400,000 with the same
needed to be spent on renovation. However, the north of the region
is considerably more affordable as it is often overlooked due to
its mountainous setting.
Puglia and Le Marche
The up and coming regions of Le Marche and Puglia were, until
recently, unknown by tourists. However, due to the efforts of the
regional tourist board and press coverage in the UK, the areas have
become increasingly popular. The region boasts the elegant towns of
Urbino and Macerata, with Urbino recently being hailed as 'The
ideal city of the Renaissance' and 'The Siena of Le
Marche'. In Le Marche, it is possible to buy an
enormous fifteen bedroom farmhouse in need of extensive restoration
for £300,000 ($610,000), whilst family sized farmhouses in need of
restoration go for around £50,000 ($100,700). Puglia's stock is
also rising rapidly, with house prices seeing a 20% rise in recent
years.
The attractions of Puglia are year-round sunshine, a good
variety of beaches, affordable house prices and a less
tourist-orientated atmosphere, while low cost flights allow for
easy access through Bari and Brindisi airports. An old ruin in need
of renovation can still be bought for about £80,000 ($160,000),
while a four-bedroom house can be found for under £270,000
($550,000). Traditional Trulli (stone buildings with conical roofs)
can be bought in this area for around £20,000 ($40,000) and two
bedroom houses can be found for under £11,000 ($22,000).
Rome, Florence, Venice, Milan.
Investors seeking rental potential should look to the larger
cities, such as Rome, Florence, Venice or Milan. These areas
symbolise Italy both in their spectacular historic architecture and
in their fashionable shopping districts, which are considered to be
some of the best in the world. It is possible to find a two-bedroom
apartment in St Peter's Square in Rome for £550,000 ($1,100,000),
while in the historic centre, a four-bedroom 19th Century luxury
apartment with a two-car garage is available for £1.4 million.
Yields here range from 3.7% to 5.3%. In Milan, apartments (studio
to three-bed) can be bought for between £88,000 ($178,000) and
£155,000 ($314,000) and can enjoy yields of between 4% - 5.2%. In
Florence meanwhile, a one bedroom apartment in the heart of the
city is available for £403,600 ($827,000) and should yield between
4.8% - 5.8%, while an eight-bedroom country house just outside the
city will cost £870,000. Finally, in Venice, a two-bedroom
fully-furnished apartment, which is estimated to yield £675
($1,200) a week in rent, can be bought for £210,000 ($426,000).
The Italian Lakes
The Alpine region around the lakes is a playground for many
wealthy Italian second-home owners thanks to its proximity to
Milan. This part of Italy boasts the romantic lakes of Como,
Maggiore, Garda and Lugano, but also has a huge range of property
available, from period villas to brand new apartments. The area
attracts people of all ages, and there are a variety of year-round
activities including water-sports, fishing, and skiing in the
winter. Lakeside properties regularly sell for well over £700,000
($1.4 million), and a more modest family home away from the water
will cost upwards of £250,000 ($500,000). However, if investors are
prepared to commit to renovation projects, properties can still be
found from around £50,000 ($100,000).
Sicily and Sardinia
It is also a good idea to consider Sicily and the increasingly
fashionable Sardinia, both of which offer perfect climates, great
beaches and their own cultural idiosyncrasies. Sicily is the
largest island in the Mediterranean Sea and enjoys a warm
Mediterranean climate. The island offers beautiful rural
countryside to visitors stemming from its largely agricultural
history and culture. Sardinia is second in size to Sicily and close
to the French island of Corsica. Largely mountainous its landscape,
the island does offer some coastal plains with beautiful beaches
and opportunities to scuba dive, wind and kite surf. In these areas
property is generally cheaper than on the mainland – a good-sized
family home can be bought for less than £200,000 ($400,000).
Basilicata
For lower prices, the more adventurous buyer might consider
Basilicata, although this is well and truly off the tourist map.
The area is one of the poorer regions of Italy and leads a quiet
understated lifestyle. It is worth noting that the south of Italy,
in general, is considerably less affluent than the north; the
service infrastructure is less reliable and local government
corruption can be a problem. Unemployment is relatively high here
too.
Umbria
Situated near Tuscany, Umbria is a sleepy, verdant region dotted
with medieval towns and castles. It is easily accessible and is
often cited as a cheaper alternative to Tuscany, although prices
here have also shot up in recent years. Property tends to be most
expensive in the two main tourist towns, Orvieto and Assisi, and
also in the south of the region. More reasonable prices can be
found around Lake Trasimeno and further north around Citta Di
Castello and Umbertide. A two-bedroom apartment here will cost
around £120,000 ($240,000), while £250,000 ($500,000) buys a
three-bedroom house with a swimming pool and a substantial garden.
Both Tuscany and Umbria are extremely popular with those looking
for a property to renovate or for a buy-to-let purchase. The
holiday rental market here is also generally good, though
competitive, and a large, high-quality farmhouse can earn as much
as £4,000 a week.
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