In the real estate sector, one of the most popular Italian regions is Puglia, a beloved tourist destination for both Italians and foreigners. In a recent article, the WSJ highlights that wealthy buyers are turning this region into one of Italy’s top domestic markets. The text mentions Paolo Gaeta, a Turin architect, who spent 11 years and over $1.8 million to create his luxurious tourist complex in the heel of Italy’s boot.
Some VIPs who have chosen to Invest in Puglia
There are many high-end buyers willing to invest in farmhouses and historic villas. Among the various VIPs is Ronn Moss and his wife Masseria Paretano, located in the district that bears its name in Monopoli, near the Valle d’Itria. Raoul Bova has purchased the Masseria San Giovanni, a structure from the second half of the 19th century in the countryside of Montalbano, a fraction of Fasano about 15 kilometers from the city. English actress Helen Mirren and her husband, director Taylor Hackford, have restored a 16th-century Masseria in Tiggiano, in the province of Lecce.
The Cost of Houses in Puglia
“Puglia is one of the few areas in mainland southern Italy, along with the Campania region, home to Naples and the Amalfi Coast, that has a reliable luxury real estate sector,” as stated in the WSJ, which cites the idealista.it portal for price analysis. According to idealista.it, the average price for estates in the region is around $121 per square foot (0.092 square meters), which is higher than in the neighboring regions of Basilicata, Calabria, and Abruzzo.
Luxury properties are concentrated in two areas: the Valle d’Itria, between Bari and Ostuni, known for its traditional trulli, and Salento, further south, around the baroque city of Lecce. According to idealista.it, the province of Brindisi, which includes a large part of the Valle d’Itria, has registered the highest price increase in the region, with a 9.2% increase between May 2022 and May 2023. The most expensive sale in 2022 was a Salento Masseria measuring 6,500 square feet (about 605 square meters), which sold for $3.78 million USD.
We Wealth has sought additional information on popular locations and price trends from other players. According to Tecnocasa, in the second half of 2022, property values for holiday estates in Puglia increased by 1.8%, but the tourist locations in the province of Bari experienced a 5.8% increase.
Particularly, in Polignano a Mare, the real estate market has seen stable prices but has benefited from significant tourist flows, leading many to purchase properties for bed and breakfast or vacation rentals. Local investors or those from the province of Bari are using an average capital ranging from €130,000 to €170,000 to acquire two-room apartments that can be rented out for €100-110 per day or €4,000 in the months of July and August. In general, prices for houses in this area range from €2,000 to €3,000 per square meter for new units with a sea view.
On the other hand, prices in Monopoli have increased by 8.6% in recent years, attracting the interest of both foreign and local investors. In the historical center, prices range from €2,000 per square meter for properties in need of renovation to over €3,000 per square meter for properties with special finishes or close proximity to the sea. Traditional houses with star, sail, or barrel vaults are preferred, as well as independent properties located in the countryside, including farmhouses and rustic trulli, purchased mainly as vacation homes or for tourism purposes.
In the province of Lecce, the real estate values of coastal areas experienced a 0.2% contraction in the second half of 2022. There is stable pricing but growing interest in the historic center of Nardò and the seaside towns of Santa Maria al Bagno and Santa Caterina. Foreigners, particularly Americans and British, show a preference for these areas, including the nearby Gallipoli.
Cities with the Highest Number of Purchases for Investment
Tecnocasa’s analysis of the main cities in Puglia also highlighted that, in 2022, the rate of purchases for investment slightly increased from 21.5% to the current 22%, while main residences and vacation homes accounted for 67.2% and 10.8% of total transactions, respectively. Among the cities, Lecce has the highest rate of investment purchases (43.1%), followed by Bari (24.5%) and Andria (21.7%). Compared to 2021, there has been an increase in the percentage of investment purchases in Bari, Andria, Brindisi, Foggia, and Lecce.
