For investors in fractional ownership, Italy is returning to favour

Photo credit: Mark Edley

For buyers interested in fractional ownership, Italy is returning to favour. That’s if you believe Linda Travella, who has been selling property in the country for the best part of three decades.

As the new Prime Minister Mario Monti struggles to reduce the country’s deficit (the second biggest in Europe) through pension cuts and a new property tax, overseas buyers are showing renewed interest in Italian real estate.

In fact, Travella says, it’s the busiest period in the country’s market for four years.

“The last quarter of 2011 is the busiest it has been for four years with a surprising amount of enquires and sales of Italian property. These are not all coming from the UK but from an international clientele,” she told Property Community.

Overseas investors are being held responsible for the rising interest, as Russian, Canadian, American, Norwegian and Swiss buyers all return to the country in a surprise turn of events.

The most popular property, according to Travella, is valued between €350,000 and €500,000, with mid-level investors driving the market. Wealthy buyers are also showing a strong demand for houses worth over €750,000.

For Travella, it’s an unexpectedly positive sign – and one that she expects to continue:

“I see the market for buying property in Italy staying buoyant for the first two quarters of 2012. We already have clients booking to view property for sale in Italy in January, which is something that does not happen every year, as it is normally a quiet month,’ she said.

“I see the higher end of the market continuing to fare the best with UK and international buyers,” she added, noting that rental demand for property in holiday periods remains strong enough to provide a “reasonable capital return” that is more reliable (and profitable) than placing their savings in a bank.

Indeed, for those looking at fractional ownership investment, this surge in confidence from buyers and agents may be enough to win investors back over to Italy’s side.