Calabria - the next big thing?

Monday September 17th , 2007

The emergence of a new area with the potential for high growth always sends a ripple of excitement through the overseas property sector.

And the latest place to come through as a likely investment hotspot is no exception.

Located at the "toe" of southern Italy, the Calabria region is the latest area to arouse interest among investors, many of whom are looking at either the investment potential of the area or the possibility of snapping up the perfect holiday home.

The introduction of new and cheap flights between Stansted and Lamezia by Ryanair has undoubtedly helped to raise the profile of the region, as prospective investors will undoubtedly want to pick an easily accessible area for several reasons.

Firstly, if the area is being opened up as a tourist market, holidaymakers need to be able to get there easily to stay in rental properties.

Numerous figures in the travel industry have credited the so-called "Ryanair effect" with opening up these new markets to investors and triggering a boom in the regional property market.

Paul Owen, chief executive of the Association of International Property Professionals, commented: "It opens Europe up, which makes it really exciting for people with such a wide choice."

But with all the choice available, including strong competition from emerging markets in the east of Europe, what is there to tempt people to Calabria?

So far, the area has been largely undeveloped as a market for investors, meaning that it has avoided the saturation and overdevelopment of other areas.

In addition, eastern European countries have been widely said to be "over-hyped" because of their cheap prices, largely as a result of the lack of modern infrastructure in many areas.

The pursuit of peace and quiet is commonly cited as one of the main reasons for going abroad, along with an improved quality of life.

It is this lack of market saturation in a developed country that has started to tempt investors.

Chris Sawyer, a specialist from research and advice firm GEM Estates, said: "Investors who shy away from emerging markets due to the perceived high risk may have been won over by the low risk option of Calabria, which although emerging has the might of Italy behind it."

And of course, the Calabria region is now easily accessible from the UK within two and a half hours.

The British media may have been slow to highlight the area for a long time, but word is now starting to get around.

Earlier this year, the Calabrian resort of Tropea was placed at number one in a list of the world's top 20 beaches.

Facing off strong competition from more established and well-known destinations such as Ibiza, Sardinia and France, it is a measure of the esteem in which the area has come to be held.

But as an emerging market, investors could potentially get to enjoy all the benefits of the area becoming more well-known and accessible.

Tourism is likely to increase in the region, resulting in further development and an increase in demand for Calabrian properties.

With the area on the up, investors who get in early could net a bargain and collect the proceeds of investing in Europe's latest growth area.