Its large number of SMEs, reputation for design and creativity, high standard of living and highly skilled workforce make Italy an attractive option for overseas investors. Investment opportunities in the country are numerous, though changing conditions in the international markets, disparities in the regulatory framework and currency fluctuations have all affected the earning opportunities for different industries. Three areas for investment however, have undergone very few changes. If anything, these markets have become better organized and more attractive in recent years. Italy's FDI is also increasing, which is associated with faster growth in local employment.
Real estate investment in Italy continues to be one of the main areas of financial activity. Italy's stock market is quite small and has been beset by hardships that have left shareholders reluctant to invest in it, meaning investors in the country have usually operated in the real estate market. A large portion of the population own their own properties and many purchase another property for vacations. Aside from this, many foreigners buy real estate in Italy because of the attractive living conditions in its various regions. While purchasing real estate might be termed consumption expenditure rather than investment, the value of Italy's real estate has pleased many investors due to its stability as well as frequent and sharp increases in property value. It is expected that the value of real estate will continue to rise because of the strong demand, both from external and domestic sources.
Another sector that offers good investment opportunities in the country is tourism and hospitality. Italy has become a major tourist destination in recent years, not only for travellers from North America and other European countries, but also from Asia, including China and Japan. Increasing numbers of visitors are also travelling to the country from Russia and Eastern Europe. While many of the travellers continue to visit art centres and the famous cities such as Florence, Venice and Rome, there are increasing numbers of tourists visiting lesser-known places like the Cinque Terre in Liguria and the small hill towns of Southern Tuscany. Investing in properties that can be converted to agri-tourism facilities has also been very popular and the growth of these facilities is a great opportunity for investors who want to tap into this market.
Investing in restaurant facilities is also a great opportunity for investors as this market remains strong. The restaurant sector in the country is of great economic importance. Italy's culinary tradition is well-known and makes it both a great short-term and long-term investment. Italy has numerous opportunities for investment in the restaurant businesses. The best approach for those who want to benefit from this market is to purchase an established business, this is due to the limited numbers of restaurant licenses. However, if the business is already well-established and has a good reputation, its cost will be greater.
The Italian government aims to encourage these markets' long term growth and anyone who wishes to invest in one of these markets needs to study the market carefully in order to achieve success and ensure the stability of the business.
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