Italian property is a mixed bag

Some growth is seen in Italy property while other areas see drop in value.

In the latest reports issued by the Real Estate Observer of the Regional Agency, numbers in Italy's property market are mixed. The growth in value of many houses in all major Italian centres has dropped off.

One exception of this is in Milan – here the price of property continues to rise. The city saw a growth of more than 4.8%. Rome also saw excellent growth numbers at the rate of 10%, for the ending in December of 2007.

Other areas that are growing are doing so due to the demand for holiday homes. For example, a town outside of Sardinia, Alghero is seeing a huge amount of growth currently due to the number of UK property investors seeking second homes here.

As reported by Response Source, Ross Elder who is managing director of HolidayLettings.co.uk said, "It is vital to consider the holidaymaker demand when choosing a destination to buy property. An investment hotspot has to demonstrate both sides of the coin if it is to appeal to mixed use investors.

It is not just about the volume of people buying property in a location that matters, but whether it is a viable investment for achieving rental income."