[The wise one]

Hi all,


I have recently purchased an apartment in Calabria, southern Italy. The agents tout it as the next emerging market with yields of 10%

For less than 100k I was able to buy a penthouse with sea views, moments away from the beach. An article from the Sunday Times in January prompted me to look into Calabria further.

I went through an agent called First step abroad, they offered me a free trip to the area to see a development called The Jewel of the Sea. Has anyone else bought there? The area is beautiful, probably reminds me of the northern Costa Blanca many years ago whilst it was still unspoilt.

Apparently in the peak season rents can achieve 1000 euros per week. Having confirmed this on a number of rental sites, I proceeded with the purchase. However, now I am looking at buying another apartment, possibly to sell before completion and before I do so I want to know if there are any reasons why I shouldn't.

Any comments will be appreciated.

Thanks

[rondy]

The wise one, on May 28 2007, 01:23 PM, said:

Hi all,
I have recently purchased an apartment in Calabria, southern Italy. The agents tout it as the next emerging market with yields of 10%

For less than 100k I was able to buy a penthouse with sea views, moments away from the beach. An article from the Sunday Times in January prompted me to look into Calabria further.

I went through an agent called First step abroad, they offered me a free trip to the area to see a development called The Jewel of the Sea. Has anyone else bought there? The area is beautiful, probably reminds me of the northern Costa Blanca many years ago whilst it was still unspoilt.

Apparently in the peak season rents can achieve 1000 euros per week. Having confirmed this on a number of rental sites, I proceeded with the purchase. However, now I am looking at buying another apartment, possibly to sell before completion and before I do so I want to know if there are any reasons why I shouldn't.

Any comments will be appreciated.

Thanks

The East Coast of Calabria is junk, the West Coast is much more beautiful.

Last August I saw advertisement for 400 Euro/week in Calabria for apartments and that is the most you can get there for August. Besides July and August there is no tourism over there so no renting. Between end October and beggining May there is no direct flight so quasi-nobody goes there.

This post has been edited by rondy: 28 May 2007 - 12:35 PM

[this_prisoner_is_opting_out]

I've seen some gorgeous properties in the same area.

*BUT*, it's still over-priced for Italy and to echo the previous poster, flights are a problem. The reason there is a glut of holiday property there is that people can't get to the place!

[dogbox]

I looked into the area and I beleive it has good investment potential. I would need to do more research but at this point I think it is probably one of the top places to invest.

Rondy as ever sees the negatives without factoring in potential. Rondy Tuscany was alos once a back water......, as I always point out to you CHANGE HAPPENS BUT BY THE TIME IT DOES ITS TOO LATE TO INVEST

[rondy]

dogbox, on May 29 2007, 11:20 AM, said:

I looked into the area and I beleive it has good investment potential. I would need to do more research but at this point I think it is probably one of the top places to invest.

Rondy as ever sees the negatives without factoring in potential. Rondy Tuscany was alos once a back water......, as I always point out to you CHANGE HAPPENS BUT BY THE TIME IT DOES ITS TOO LATE TO INVEST

What was negative about my post?????

I invested there and I know the area very well. I just said that the West Coast is much better. For you does not probably make any difference as you have no idea about Calabria so better keep quiet on that one.

[dogbox]

Rondy, you said "July & August there is no tourism so no renting"

Buyers on a specific Calabria website that have detailed knowledge say there is a shortage of property in summer and rental demand outstrips supply. These are buyers NOT agents saying this.

[rondy]

dogbox, on May 29 2007, 03:14 PM, said:

Rondy, you said "July & August there is no tourism so no renting"

Buyers on a specific Calabria website that have detailed knowledge say there is a shortage of property in summer and rental demand outstrips supply. These are buyers NOT agents saying this.

Sorry for the confusion. July and August are extremely busy and there is a lot of demand for renting.

Between September and May the place is deserted.

[Mark_G]

Hi Everyone,

I have been working within the Calabria property market for some time.

Here are two links http://propertyincalabria.blogspot.com and http://thesandscalabria.blogspot.com.

The former gives information about the Reggio Di Calabria region including lifestyle tips etc, the latter tracks the construction of a particular development in Brancaleone, possibly giving you an idea of what to expect after you have purchased.

Although at this stage there aren´t a great deal of posts on either blog, price analysis and insight into where EU and domestic funding is being spent will appear in due course.

Hopefully it may help you build an understanding of the region and complement the plethora of information currently circulating.

This market is difficult to access, because in some cases property prices have been inflated by foreign investor chasing foreign investor, as seen in Bulgaria. However, Calabria is not former Eastern Block and it is in the second most popular holiday destination in the world. Namely Italy, a proven tourist hotspot.

Unlike the Uk actual information on prices paid for property can be scant and fragmented.

Beachfront property can be found reasonably priced compared to established european destinations, you will find the internal space to be pretty small, so make sure you examine the price per m2.

The rental market in some places is in its infancy so it may take a little time to get things up to speed. My suggestion would be to target an Italian rental company in the North (language permitting)working on your behalf, as Calabria is a popular destination with Italian city folk.

There is no such thing as easy money and don´t believe any spiel that says its all roses, there is demand you just have to market through the correct channels. Becoming a landlord you are effectively building up a business which can take time.

And no I am not involved in rentals!

Visit the place, get a feel. I think investment wise you would have to take a long term view on this region, depending of course on your risk tolerence. For lifestyle and sheer natural beauty I think it represents great value.

Mark.

This post has been edited by Mark_G: 07 February 2009 - 09:05 PM

[Jazzman]

I went to Italy about 18 months ago, namely, Como, Puglia, Naples, and Tuscany so can't really comment on Calabria. Generally, I found property to be very over-valued in the places I visited, with the possible exception of the south, and due to lack of information difficult to research. If buying a holiday home, the thing I'd watch for is cuts in low cost airline routes. I'd also want to consider the exchange rate if paying in £'s or $'s.

[whiterabbit]

Jazzman, on Feb 16 2009, 09:36 AM, said:

I went to Italy about 18 months ago, namely, Como, Puglia, Naples, and Tuscany so can't really comment on Calabria. Generally, I found property to be very over-valued in the places I visited, with the possible exception of the south, and due to lack of information difficult to research. If buying a holiday home, the thing I'd watch for is cuts in low cost airline routes. I'd also want to consider the exchange rate if paying in £'s or $'s.

Como, Tuscany etc will always be expensive because they are established distinations and a large percentatge of the worlds rich would like to have a property there.

Calabria however is an unknown market which is why it is cheaper in comparison. Personally I would still say it may be safer to buy a much smaller place in a mroe established area.

[Mark_G]

whiterabbit, on Feb 16 2009, 05:01 PM, said:

Como, Tuscany etc will always be expensive because they are established distinations and a large percentatge of the worlds rich would like to have a property there.

Calabria however is an unknown market which is why it is cheaper in comparison. Personally I would still say it may be safer to buy a much smaller place in a mroe established area.

Calabria would be regarded as an emerging market and if a purchase is for investment only, a long term view would have to be taken.

There is significant funding being deployed into the region, so hopefully the current dis-parity between the north and south will vanish.

What it comes down to is whether the property represents good value, for beachfront apartments in Southern Europe I feel there is room for growth in the long term. The gulf between prices in Calabria and southern Spain ( even with some spanish properties losing significant value) are still pretty dramatic.

This post has been edited by Mark_G: 16 February 2009 - 08:26 PM

[Mark_G]

Mark_G, on Feb 16 2009, 09:25 PM, said:

Calabria would be regarded as an emerging market and if a purchase is for investment only, a long term view would have to be taken.

There is significant funding being deployed into the region, so hopefully the current dis-parity between the north and south will vanish.

What it comes down to is whether the property represents good value, for beachfront apartments in Southern Europe I feel there is room for growth in the long term. The gulf between prices in Calabria and southern Spain ( even with some spanish properties losing significant value) are still pretty dramatic.

I have got together the specific allocation of funding for the 2007-2013 "cohesion plan" and have posted it on http://propertyincalabria.blogspot.com

This makes interesting reading as over €3 billion is being spent, 12% will go towards making Calabria a more competitive tourist destination and 16% will go on accessibilty, both internal and external. The improvment of both of these issues will impact directly on the desirabilty of property.

I stand by my opinion that in the long term IE. 2013-15 upon completion of the Regional Develeopment Plan you will not be able to buy beachfront property for €1900 per m2.

[Mark_G]

Mark_G, on Feb 18 2009, 09:28 PM, said:

I have got together the specific allocation of funding for the 2007-2013 "cohesion plan" and have posted it on http://propertyincalabria.blogspot.com

This makes interesting reading as over €3 billion is being spent, 12% will go towards making Calabria a more competitive tourist destination and 16% will go on accessibilty, both internal and external. The improvment of both of these issues will impact directly on the desirabilty of property.

I stand by my opinion that in the long term IE. 2013-15 upon completion of the Regional Develeopment Plan you will not be able to buy beachfront property for €1900 per m2.

Digging down into the figures that are actually being spent over the next 4 years over €360 Million will go on making tourism compete with its rivals. €480 Million will be spent on internal and external accessibilty, its relatively poor accessibilty compared to southern european locations has been an isssue.
The environment and its preservation will get €360 million.

http://propertyincalabria.blogspot.com

Further info contaned in the blog above.

[West Hampstead]

[quote name='The wise one' date='May 28 2007, 12:23 PM' post='650951']
Hi all,


I have recently purchased an apartment in Calabria, southern Italy. The agents tout it as the next emerging market with yields of 10%


Amanda Lamb from A Place in the Sun has bought there and she says that Mickey rourke has too! Southern Italy is were the Italians holiday too. If Amanda has bought in Southern Italy it must be worthwhile.

[Maggie57]

I thought I had purchased an apartment in Calabria until I discovered that the building licence had been revoked and I am likely to lose more than £30000.
Beware of buying there. If anybody else is in the same situation as I am please contact me