Ryan Airline Effect To Boost Italian Property Prices

The so-called ‘Ryan Air effect’ is coming to Italy, thanks to the implementation of the country’s new high speed rail system. The term refers to the piece-by-piece real estate surge experienced as countries and regions formerly deemed inaccessible are put on the travel map thanks to cheap and simple transport solutions.

The Italian high speed train service, known as the TAV, is currently operational in part, using some of the main lines but not able to operate at full speed capacity. The new lines will change that; the high speed route from Rome to Naples is nearly complete and portions of the route from Turin to Milan are also open. Another line from Milan to Rome is scheduled to open in early 2009. The country’s national rail provider, Trenitalia, has invested €2.5 billion in new stations for Bologna, Naples and Florence and renovations in Milan, Rome and Turin, making the choice to commute and increasingly attractive option. Agents have noted that, when a new station is opened, surrounding houses prices leap by 30-40%.

A recent report in the International Herald Tribune also made reference to this budget airline effect, speculating that property values in popular tourist spots along the Italian coast would be amongst the first to increase. Ryan Air recently started offering flights to southern Italy, leading to a rush of interest in the province of Calabria among tourists and foreign property buyers. The carrier has recently said it is planning to upgrade and replace parts of its fleet next year, as well as introduce extra aircraft to handle the additional routes – good news all round for the Italian property market.