Italian house prices 'set to grow'

Friday December 7th , 2007

Improvements to the transport network in Italy are likely to have a positive effect on the property market, experts have revealed.

A high-speed rail network is currently being rolled out across the country, leading many to believe that places along the various routes will become more desirable as a result.

Real estate agent Marco Tirelli compared the impact of the transport upgrades to the so-called Ryanair effect, which means that house prices tend to rise in areas that are made more easily accessible.

Speaking to the International Herald Tribune, he commented: "When the high-speed trains arrives in a touristic place, you can be sure there will be a spike in real estate prices."

He added that the new train service would help draw people to areas such as Milan in much the same way that airlines have attracted visitors.

This could help to make it an attractive market among foreign people who are thinking of purchasing a home in the country.

According to Foreign Property Buyer, Italy continues to be a popular investment location partly because of its advanced infrastructure.