Investing in Real Estate in Italy with InvestItaly.com
Here at InvestItaly.com, we are happy to inform you that there are plenty of Investment opportunities in Italy. However, shifting circumstance in international economies, currency instabilities as well as variations in the regulatory framework affecting trade as a result of the implementation of the World Trade Organization regulations, have all played a role in altering the earning potentials for numerous industries.
Take, for instance, Italy investments in the areas of the textiles and footwear industries. These two sectors are among the heads of global manufacturing. For many years, the textiles and the footwear industries offered highly good returns on investments. Furthermore, the Italian industries were constantly using innovative designs and technologies. The products of these Italian industries became well known as synonymous with style and quality all over the world, plus, a major share of manufacture was aimed to export markets. Then again, in the last few years, investment opportunities in these Italian businesses have been harshly abbreviated.
Several factors were part of the cause for the lack of profitability of investments in these particular Italian industries. These primarily consist of the growing competition on global markets from low cost producers, mostly in Asia where design and technology have made a lot of progress, often with the teamwork of investors from Italy as well as additional European countries. With the Asian competitors, China is definitely the most exceptional, but other countries have also mangled to develop important industries competing in worldwide markets, especially in the field of textiles. The low costs of manufacture, principally the wages paid to workforce, low costs of locally manufactured raw materials (such as cotton and manmade fibers) and the liberalization of trade under the World Trade Organization (WTO) disciplines in 2005.
In addition to the fundamental structural factors wearing away investment prospects in long-established industries in Italy, the competitive position of the country on global markets has been unfavorably affected by the appreciation of the Euro, especially in relation to the US dollar. Clearly, the Italian industries didn't stay still. Every possible step has been taken to orient production to products in the top of the market. Italian investments were aiming to promote output that is stupendous for its design and quality. The lower end of the market has begun to link with low-priced products (frequently manufactured by Italians abroad) being imported for the local market or re-export purposes.
Consequently, investment possibilities in Italy became numerous, however these are changing constantly and a lot of industries are changing their positions within this dynamic market. Still, two areas for investment in Italy have experienced a very small change. Furthermore, they have become more appealing and much better organized recently. These are the markets of real estate and for tourism.
Investment in Real Estate in Italy
Investment in real estate in Italy keeps on being one of the major elements of economic activity In Italy. The Italian stock market is relatively small and has been troubled by a series of complexities that have left shareholders doubtful and unwilling to put in. Investors in Italy have usually acted within the real estate market. A greatly huge share of the Italian inhabitants does own their own homes, and a lot of them buy second homes for holiday purposes. Additionally, a lot of foreigners buy real estate in Italy due to the appealing standard of living in numerous areas. For example, there are large colonies of foreigners living in Tuscany, Umbria, the lake areas of northern Italy, etc. While the purchase of real estate in Italy might be considered a "consumption expenditure" rather than an investment, surprisingly enough the value of real estate in Italy has given great satisfaction to investors as a result of the steady and often rapid increase in values. In recent years, the increases in values have been well ahead of rises in the cost of living. It may be expected that real estate values will continue to rise because of the strong underlying demand, both from domestic as well as external sources.
Obviously, a mixture of factors should be considered before the action of real estate investment. Location is important in particular. If there's one thing you should take into consideration is that there will always be a market for the "show piece" assets and due to the declining availability of such assets their prices will keep on rising. An additional aspect to be taken into consideration before you buy real estate is the potential that the asset might be put for either resale or commercial use once it has been refurbished.
In addition, there is still a large number of real estate assets for sale in Italy that are situated in breathtaking country regions or in petit hill towns that have been vacated by the locals who have moved to busier urban areas. These properties are often sold at very reasonable prices. With renovation it's more likely to increase their value. Throughout most of Italy, especially in the north and in the center, local administrations are taking steps to improve the appeal of their areas in order to promote tourism as well as the expansion of residential and local commercial.