Tuscany has for a long time been the focus for foreigners buying homes in Italy. The rolling hills surrounding historic cities such as Florence and Sienna have kept their attraction and the promise of an easy life, despite the country's economy going into reverse. Last year was difficult for the property sector in Italy and this year may be even more difficult. According to research institute Nomisma, residential property prices fell by 1 per cent nationally in the second half of 2008. However, the market is highly regionalised, with great variations across the country. In general, prices in cities in the poorer south continued to rise last year, while those in the north fell. Roger Coombes, managing director of Cluttons Italy, believes that the market in Italy is unlikely to crash. One of the main reasons is that Italian banks have generally followed much more conservative lending policies than those in some countries. He believes that the market for the types of properties that foreign investors buy in Tuscany is unlikely to be deeply affected by the economic crisis. However, the slow fall in the overall market may continue this year and even into 2010 before a recovery takes off. According to Mr Coombes, there is a clear distinction between the markets for local buyers and foreign investors. The market for local buyers consists of houses and apartments for normal residential use, while that for foreign investors has focused on restored traditional properties usually in the countryside that are normally neglected by Italian buyers. In some regions, such as popular seaside or ski resorts, the markets for foreigners and locals may overlap. Tuscany has, over many years, experienced a huge influx of foreign investors, mostly from northern Europe, especially Britain, but also from further afield. The climate, beautiful countryside, historic cities, cuisine and wine have made the region an irresistible attraction. It is now recognised that Tuscany has become the most expensive region in Italy. The market for foreigners focuses on rural properties such as farmhouses. According to agencies covering Tuscany, there are many properties available in the range of Euro500,000 (HK$4.92 million) to Euro2.5 million in the region. In Tuscany and neighbouring Umbria, according to Mr Coombes, a well-restored farmhouse in a good location with three to four bedrooms and a swimming pool will have an average price of about Euro2,700 per square metre, although asking prices in the region can be significantly higher. Prices for top-end large country villas are about Euro6,000 per square metre, and for smaller ones they can be about Euro3,500 to Euro4,000 per square metre. Luca Santoro, CEO of House & Loft, an agency that handles property in Tuscany, points out that there can be big variations in prices for the same type of property even within the region. For instance, apartments in the corridor between Florence and Sienna start at about Euro350,000, while in southern Tuscany a similar property would cost only Euro230,000. One of the great attractions for many buyers in Tuscany is the chance to purchase and restore an old farmhouse. But the influx of buyers over the past 20 years means that it is now difficult to find bargains. There are good deals to be had if vendors are eager to sell, either because they are under financial pressure or wish to change their lifestyle. For instance, there are foreign owners who bought houses a number of years ago and now want to sell up as they get older and no longer wish to manage a large property. At the same time, some owners from countries that have been badly hit by the crisis, such as Britain, may need to sell. The recent strength of the euro has been an important factor in the market. Buyers from Britain and the United States that have seen their currencies fall are now pushing hard for bargains. On the other hand, some sellers in Italy eager to cash in on the euro's strength have been willing to drop prices in order to make a quick sale. But Paul Hudson, who heads the Italian operations of The Property Finders, an international property search company, said that in Tuscany many sellers were willing to take their property off the market in order to sit out the crisis. Most foreign buyers, seduced by the charms of Tuscany, purchase properties for their own use. But there are options for these who want to gain income from their investment. For the type of properties that most foreign investors are interested in, there is potential for rental, with one common option being for owners to rent out their homes for part of the year. The return will depend on the property and the length of the season, which in the south tends to be longer than in the north.