ITALIA! July 2008
Together forming the toe and instep of the Italian boot, Calabria e Basilicata enjoy an enviable geography. Rural hills and rugged mountainscapes meet with long, empty beaches in the east and intimate cliff-bound coves in the west. The sun never seems to stop shining, and the sea is clean and inviting. Only 2.6 million people live here, spread across an area larger than Wales, ant there’s only one city of any real size (Reggio, on the toe-tip). Local people enjoy a pleasantly slow pace of life and an admirably strong sense of community. Calabria and Basilicata have long been overlooked by foreign visitors and property buyers who judged them inaccessible and impoverished, but massive government investment has transformed both regions, and each is now beginning to realize its potential.
When Italia! Last looked at Calabria and Basilicata three years ago, they had the slowest property markets of all Italy’s regions (along with tiny Molise and Valle d’Aosta). But this is absolutely no longer the case. Calabria has seen a building boom in tasteful, high-quality seaside developments and is rapidly earning a reputation as a great place to buy an inexpensive beach apartment. Rural Basilicata, meanwhile, is finally starting to attract attention and could well become ‘the new Puglia’ – holding particular appeal to buyers seeking an affordable country idyll. Both regions have clearly gone from ‘undiscovered’ to ‘up-and-coming’ over the last three years. Both have attracted the close attention of property developers and seen the rise of new estate agencies. They remain very inexpensive and unspoilt, and now is an excellent time to buy.
Then and now
Calabria and Basilicata both enjoyed a glorious past as part of ‘Magna Graecia’ – the ancient greek empire – and there are plenty of Hellenic remains here to thrill any history buff. But the last 2,000 years have been rather less economically and creatively successful for Calabria and Basilicata. Invasions, earthquakes, political corruption, organized crime, poverty and de-population – these two regions have hade their fair share of suffering. At the end of 20th century, both Calabria and Basilicata had high unemployment and continued to endure the blight of local mafia activity – albeit with mounting resistance. But the infant 21st century seems to be marking a real turning point in the region’s fortunes. Huge amounts of government cash have been pumped into southern Italy in attempt to kick-start the local economies, especially the tourist economy. And the results are definitely beginning to show.
Calabria and Basilicata are still rough around the edges – slick northern Italy this is not – but the tourist infrastructure down here is considerably improved (the other rough edges can be charming, of course). Dozens of seaside towns sport lovely new promenades, the local road connections are better then they were, and best of all, budget flights have put both regions within easy reach of Britain. Ryanair flies to Lamezia Terme in the middle of Calabria’s western coast, and also to Bari in Puglia, from where Basilicata’ most fascinating city, Matera, is less than an hour’s drive. Both Basilicata and Calabria have considerable potential as tourists destinations, and it’s extremely likely that incipient visitor interest will grow and grow.
Calabria’s chief appeal is a seaside destination (and this is reflected on property market). Resorts such as Tropea in the southwest are already well-known and well-visited by Italians from other regions. Calabria’s long western coast tend to be intricate and dramatic, with lost cliffs and coves, and steep terrain climbing inland. The eastern coast is flatter and emptier, with some lovely long beaches. Basilicata’s chief appeal is arguably its inland rural landscape – especially around Matera where the rolling countryside is reminiscent of Tuscany. Matera itself is unique ancient city – not long byword for terrible poverty, with local living in cave-like dwellings. It’s now a UNESCO World Heritage Site, and holds immense appeal for visitors interested in history. Basilicata doesn’t have a lot of coastline, but it does have one utterly thriving seaside resort: Maratea, on the western coast, just north of the border with Calabria. A geographically gorgeous spot, it’s very popular with Italian tourists.
Hotting up
Let’s look at each region and its property market in closer detail, starting with Calabria. There has certainly been a lot going on here over the last couple of years. Numerous developers have built small-scale apartment complexes on the coast, and they are selling extremely well, according to property experts in the area. “Over the last year and half the market in Calabria has gone crazy,” says Conrad Bedford of Overseas Property Shop. “We sell on average one property a day down here. The developments are small, unlike Spain or other European countries where you get 200 or 300 units. Here you might get 16 or 32. Calabria is a breath of fresh air and the local people live an incredibly traditional lifestyle. It feels 20 years behind th times in some places. It’s fabulous.”
Janet Fairfax of Cresta Villas agrees the Calabria’s property market is blossoming. “We had a fantastic first and second year in Calabria,” she says. “Its exceeded all of our expectations. It started off with just three developments, and now there are probably a dozen at any given time in our portfolio. When we first went out there, there was nothing even built – it was all being sold in plan. I do think the market in Calabria its about to explode. I believe that in the next six months you’re going to see a transformation. The market is opening up very fast.”
Although still very affordable, prices are beginning to rise in Calabria. Currently you can get a new one-bedroom apartment with a sea view from abut 58,000 euro, and a two-bed from 80,000 euro. Note that the most coastal apartments tend to be small-sized, the expectation being that you’ll want to use them just as a holiday home. Outdoor terraces, meanwhile, can be very spacious. If you want more interior space, new-build detached seaside villas are quite a bit higher in price, going for about 180,000 euro on average. But a short distance inland, old village houses needing some modernization can be had for as little as 35,000 euro. Generally, despite the very reasonable prices of new-build seaside apartments, an older property a short distance inland if often better value for money. And it’s recommended that you consider one of these if you want to visit Calabria in the colder as well as the warmer months. Life goes on as normal in the small hinterland towns and villages, while a seaside resort founded on visitors interest can shut up shop entirely in the winter.
East-West divide
Calabria’s east coast (on the ‘Ionian’ bit of the Mediterranean) is generally a little cheaper than its west coast (on the ‘Tyrrhenan’ bit). The west has long been popular with Italian tourists – especially the knobbly toe-knuckle of the Italian foot, around Tropea, which can be very crowded in the height of summer. The west coast is generally steeper and craggier than the flattish, expansive east, and Janet Fairfax suggests that would-be buyers visit both to see which they prefer. She says “For older people or families with children, the Ionian coast is often better. Forget Tropea if you’ve got walking difficulties or a pushchair. All those stairs, all those hills. That whole area is like that. It’s beautiful but not always practical. The Ionian Coast generally gives better value for money.
There are miles and miles of coastline there that are untouched. “Martin Pears of Andiamo Homes agrees that both coasts have their own appeal, but he admits, “The west coast is generally more mountainous and consequently more attractive. Parts of this coast certainly rival Amalfi and the French Riviera, at a fraction of the coast.”
Coast have often been made about Basilicata’s short, glorious stretch of Tyrrenean coast around the resort of Maratea – just north of the coastal border with Calabria. This picturesque hilltop town presides over a dramatic tumble of cliffs, rocks and secluded beaches. It draws large numbers of discerning summer visitors and sees Basilicata’s highest property prices. But it’s still Basilicata we’re talking about here, so those ‘highest property prices’ are relative. A two-bedroom apartment in Maratea might set you back 150,000 euro. This is more expensive than most of the Calabrian coast south of here, but quite a bit cheaper than the Amalfi coast further north! Note that if you move a short distance inland from Maratea, prices start to tumble. Let’s take a look now at the property market elsewhere in Basilicata.
Watch this space
Basilicata is one of Italy’s most thinly populated regions, with lots of wild open spaces and only a thin sprinkling of small-sized settlements. The people here – what few remain after the early 20th century mass migrations to the New World – generally live a quiet, traditional lifestyle. But the poverty that characterized Basilicata for so long is beginning to lift, and the region is no longer the wholly unknown and unvisited place it once was. In particular, the unique city of Matera and its surrounding countryside have been attracting quite some interest. Film-makers and journalists have drawn increasing attention to Matera in recent years, and the tiny city has undergone considerably self-improvement. It’s here, in and around Matera, where Basilicata’s few new foreign-buyer-oriented estate agencies are concentrating their efforts. The area certainly has the potential to become a new Italian property hotspot, appealing to the many buyers who seek a rural farmhouse in rolling countryside. Furthermore, it has other, very appealing qualities. “Matera has just been voted for the second year running the safest place in Italy, by the Italian equivalent of the Financial Times,” points out Francesco Carlucci of Landscape Properties. “Plus, the hilly countryside around Matera is truly sensational. It’s just like Tuscany, but with different architecture and history. I think it will be the next Italian place to boom. The market here is virgin, and area is absolutely ready for the right kind of development. Tuscany has thousands of farmhouses. But due to the fact that the south was so poor, there are comparatively few farmhouse here. We take the traditional, elegant building style of the Puglian masseria and build them here. We do not want to target the area to the lower end of the market.” Sofie Anefors of Basilicata specialist agency Casa Enotria also believes the Matera countryside holds enormous appeal for foreign buyers. “The interest in Basilicata started a few years ago, and today there is a great interest, especially from the English and Scandinavians. Basilicata is one of the last regions in Italy where you can still find very affordable property. Actually the prices started to increase last year, in contrast to many other regions in Italy where prices are staying at a fixed level. So now is the perfect time to invest.”
Matera province offers lots of possibilities for country homes with land and sea view. A dozen miles from the water, you might pay just 25,000 euro for a small rural house needing work, or 135,000 euro for a completely renovated villa with lots of land. There are also plenty apartments for sale in old stone villages around Matera. A small one needing major work can ask as little as 15,000 euro, but you’d have to spend at least the same again – and probably a bit more – bringing it up to a modern level of comfort. Property prices are higher in Matera itself than in the surrounding countryside, and also higher right on the local seaside than in the hinterland.
Just starting out
So, if you’re after an inexpensive holiday home in a beautiful and uncrowned part of Italy, Calabria and Basilicata are definitely two regions you should be considering. This is an exciting new part of Italy that’s only just beginning to open up to non-Italians. Understandably, because the market is so fresh, it’s difficult to offer generalization about holiday rental prospect here. Obviously, there’s a great potential for visitors in both areas, but how long it will take before they become well-known and well visited is anyone’s guess. For the time being, it’s probably best to consider Calabria and Basilicata as excellent places to buy a holiday home for your own use, and any rental income you garner on it is just a bonus. If holiday rental returns are a key factor in your budgeting, or you would rely on them to cover your mortgage on a property down here, then you would need to proceed very cautiously indeed – and would probably be better buying somewhere else, with a more established visitors reputation. As we have seen, currently the best places for holiday rental returns in Calabria and Basilicata are Maratea, Matera, and the Tropea promontory. But of course, they aren’t the regions’ cheapest places! Summer only rentals are pretty good in most seaside resorts, but as your clients would, for now, be mostly Italians you’d have to have good Italian language skills. Rental returns may be uncertain, but one thing is sure: buy a home in Calabria or Basilicata and you’ll be buying into a fascinating slices of little-known but up-and-coming Italy. Both regions are definitely beginning to blossom, and they promise great things to come.
ITALIA! July 2008