Profiting from Investment Property in Abruzzo in Italy

It has become gradually more difficult to profit from investment property in Italy with increasing taxes, decreasing yields, slow house price growth and laws that are pro-tenant and seemingly anti-landlord all conspiring against real estate investors.  But with the ‘discovery’ of a new region of Italy by the Great British property hungry public, could this situation be about to change?

This article is all about profiting from investment property in Abruzzo in Italy and the approaches that an investor can take if they are determined to exploit this as yet, relatively under explored region.

At the outset we’d just like to comment that this article is probably most applicable to those with a love of Italy and who are determined to find real estate based money making opportunities specifically in Italy, rather than for international property investors seeking a brand new marketplace to explore – why?  Because the profits derivable even in Abruzzo are limited in our opinion, therefore you have to be hot on Italy and Italian property to want to entangle yourself in the maze that is the property buying, owning, restoring and selling process.

The beautiful and mountainous region of Abruzzo has long been a favourite summer and winter holiday destination for local Italians – they have been seduced by the region’s ancient charms, dramatic history and wealth of castles and medieval towns, they have been attracted to the clean and pristine Adriatic beaches, excited by the wintertime ski opportunities and enchanted by the rare flora and fauna that abounds in Abruzzo and which is protected in the national and regional parks that cover a third of the entire region.

But other than the local Italian tourism demand, Abruzzo remained lesser explored by international tourism numbers as it wasn’t particularly easily accessible.  The region also evaded the active attention of second and holiday home hunting Brits for the self same reason - and then along came Ryanair.  Ryanair now fly to Aeroporto di Pescara which is also known as Abruzzo International Airport and which is just a couple of miles from the centre of Pescara, an ancient and fascinating city in the heart of the Abruzzo region – Ryanair currently have flights from the UK from as little as 79 pence (excluding taxes and fees) and all of a sudden this operator alone has managed to open the eyes of the British public to a whole new world in Italy.

According to local estate agents that we spoke to, Abruzzo has suddenly seen a surge in requests specifically from British buyers who are generally seeking detached properties for sale that are within easy reach of the airport.  Additionally there has been a marked increase in demand for coastal rental properties where weekly rents have risen to GBP 450 during high season.  For Abruzzo this is certainly a dramatic turn of events.

Property prices in this part of Italy have as yet been unaffected by this sharp increase of interest – but that is unlikely to remain the case - as international demand increases so the market will be able to cope with increasing prices.  Right now those hoping to profit from investment property in Abruzzo can move quickly, secure suitable real estate and be in the most ideal position to benefit from any expansion in the market.  So, what’s the right approach to take?

Opportunities include buying ski or summertime-suitable apartments, chalets or detached properties for rental - or buying and resorting character properties for resale specifically to the British market looking for such property for retirement or holiday purposes.  The former approach will reap substantially lower yields than one might think because despite the low cost of property in Abruzzo at the moment, the high costs involved in purchasing property in Italy combined with still limited and seasonal demand means that any income derivable will generally be less than impressive.

So that really only realistically leaves renovating character stock for resale and this is where investors can profit from investment real estate assets in Abruzzo.  Currently there is an abundance of property stock across the region from rural ruins to medieval townhouses, from hillside cottages to rundown farmhouses with sea views.  Those who are passionate about Italy and about property in Italy should consider Abruzzo because it is a region with huge appeal, affordable property in abundance and a real potential for growth fuelled by overseas demand for second and retirement homes.  But remember to be realistic, consider what your buying public will want, remain accessible in terms of location and hire a decent lawyer from the outset who can work with you to ensure your plans for a given property can actually be realized.

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