Real Estate Investment in Italy - Assignment Example

Lack of infrastructure and basic facilities would lead to a downfall in prices of the land and investors will lose faith and retract the investment. This would be a huge disaster for any businessman. Therefore before putting the land to sale check the basic amenities and infrastructure and the price of the land accordingly.A general definition of valuation of the property is to state the actual value of the property both according to the government and private (commercial) sector. But the government will evaluate only landed property and fertile land.

While valuating a property government will not consider the commercial demand that property is possessed with.Italy has many heritage monuments. The heritage monuments may fetch income in the form of tourists visiting these monuments. Government earns income with developing tourism. The income goes to the government treasury, which is utilized in developing the country's economy.Commercial showroom owners are ready to pay any amount of money to get a place in the most commercially viable areas.

The reasons for the properties producing high income is leasing it out or renting the property for a specified period of time. The value of the commercial and office property keeps growing with the development of the city. With the increasing number of tourists visiting the revenue increases. Tourism also plays an important in increasing the price of the land.As the population of the country increases the cities start expanding and drag the outskirts into city limits. Since outskirts will be a new place to establish, developers raise the property keeping in mind the space required for offices, commercial establishments, military units and staff quarters for employees to reside.

Newly established property prices touch the skies means the prices are always soaring high allowing only rich and affluent people to purchase the property. These properties fair well when they are presented up again for resale.