Amalfi Coast, Italy

Property in Italy is holding up in the credit crunch with experts predicting modest growth in many areas.

Locations with a strong tourist market are the best to invest in and southern Italy in particular is still offering lower priced investments.

Italy hasn't experienced the same problems as the UK and Spanish property markets and the risk of a downturn is considerably lower, according to a new report from Cluttons Italy.

One reason is a significant shift in the Italian market in recent years. 'Until 10 to 15 years ago the majority of foreign buyers were middle class people looking for their storybook villa in culturally rich areas like Tuscany and the Amalfi coast,' the report says.

'Now the arrival of low cost airlines has made southern Italy much more accessible, steering a wider range of buyers to lower cost resort properties in southern regions like Puglia and Calabria.'.

Fashionable areas like Capri and the Amalfi coast are likely to see property prices continuing to rise. Cluttons predicts around 10% this year.

But Calabria in Southern Italy where prices are cheaper is set to become one of the most popular destinations in Europe, and the next Mediterranean property investment success story.

'Property prices are comparatively cheaper than other similar areas in Europe. Also the area will not be overdeveloped due to strict government planning controls. This will ensure that demand remains high for rental accommodation and resale properties,' said Roger Coombes of Cluttons Italy.

'When an area like Calabria begins to attract increasing international attention, it is all but a foregone conclusion that property prices will see sustained and rapid growth of at least 10-15 percent per year,' predicted Liam Bailey of David Stanley Redfern.

And Chris Sawyer, GEM Estates' Italy expert is also backing the area, 'It's largely the southernmost region of Calabria that's fuelling this heightened interest. As soon as the British buying public realized that chic Italy had a hidden corner which was both aesthetically stunning and highly affordable, the rush was on,' he said.

'Calabria is now jostling for attention alongside the established Côtes and Costas and ticks boxes for both lifestyle buyers after a pleasant climate and attractive coastline and investors with an eye for a profit.'

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