While the rest of Europe experienced double-digit dips in their housing prices, the Italian market remained stable. Of course, this does not mean that they were completely untouched. In 2009, property values in Italy fell by about five percent. And while this was a cause for concern, it paled by comparison to the twenty-eight percent decline in Spanish real estate.

Why and how has the Italian market remained strong? Well, one reason is that their housing market has traditionally been quite stable. Perhaps this is due to their population, which has not experienced much growth. For this reason, home builders do not put up many new homes, even when the market is good. In the end, it is a simple supply and demand issue.

To buy home for a holiday just click here ? As an investment opportunity, there are few markets that are more stable than the Italian real estate market. And since they have experienced a small decline, the coming years are expected to be quite profitable. This is particularly true for foreign investors who buy older homes. (more...)