The Italian version of Real Estate Investment Trust - REITs - will be known as SIIQs and should be introduced by July 2007. These are basically collective investments that pool investors money into various property ventures without those investors having to get involved in the actual buying process.

These popular investment trusts have already been established in other countries such as France, Australia, UK and the US.

These trusts often invest in commercial property such as office buildings, shopping malls, hotels, industrial units, cinemas etc but can also get involved in residential property.

Investors would see returns via rental income or if a profit was made on the sale of one of the trust investments. One of the many good points of these trusts is that they are far easier and quicker to sell than an actual building and with much less hassle.

The finance ministry's announcement helped to push up share prices of Italian property companies and should gain the attention of potential investors.

As with any investment, there is a risk involved if the property market does not perform well but if a boom were to take place the profits could be very good.