I have reserved a townhouse off-plan in Calabria, Italy. The agents tout it as an emerging area with yields of 15%-20% expected in the next year. Ryanair has started a service. Is it a good place to invest?
ISR, by e-mail

Calabria, in the southern boot of Italy, has been described for a long time as “hidden” Italy. It has sandy beaches, mountains, forests, wonderful vistas, picturesque small towns and attractive villages where a considerable number of development projects are under way. The Italian government is pushing money into the region to encourage regeneration and tourism, road links have been improved, and there is an international airport at Lamezia Terme that has flights from Germany, Holland, Switzerland and the UK.

The publicity is still in its early days and, although more developed than it was, I believe that property prices in this region have a good chance of increasing significantly over the next few years. Tourism and holiday housing is a prime target for growth as prices are still lower than in many comparable locations. A price gain of 15%-20% over the next 12 months may be a bit optimistic but, as emerging markets go, Calabria looks a reasonable proposition and you could expect to see double-digit growth. Use a lawyer who understands Italian conveyancing and who can advise you in English.

Bill Blevins is managing director of Blevins Franks International, an independent firm providing tax and investment advice

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