Italian real estate market, for some years now, has been struggling to get back on its feet: the economic crisis and diversification of investments have slowed down the market in almost all regions.
In this not very comforting picture, there is a region that goes against the tide, showing comforting signs of recovery: buying a property in Puglia, if certain factors are satisfied, can be a real deal.
According to data provided by the most important real estate sales sites, in January 2023 in Puglia there are 75,000 properties for sale and 7,000 for rent, which is 5% of Italian real estate ads.DISCOVER PUGLIA PARADISE PARTNERS PROGRAM
There are two main reasons for this growth:
1) In recent years Puglia has been experiencing a considerable increase in tourism from both the rest of Italy and foreign countries. According to data published at the end of 2022, Puglia boasts a 10% increase in total tourism and 7% in overnight stays, marking a much higher value than the rest of Italy.
On both sides, Ionic and Tyrrhenian, there are well-known tourist places and many others to discover and explore.
2) Buying a property in Puglia can be a great investment if operated in areas that over time can revive the real estate market. Especially if you have the foresight to do it in the right timing, ie when the balance between supply and demand is still favorable. For this reason, it is advisable to turn to areas where the prospect of economic development can guarantee the recovery of the real estate investing itself.
In this context, investing in a property in Puglia is worthwhile because local administrations and promotion agencies effort is aimed at a growing commercial, industrial and cultural reaffirmation. This effort, together with the growing export of typical products all over the world, is encouraging the growth of small and medium companies and the resulting population density, even in those places that in the past had been abandoned because poor in work.
So Puglia has a very high potential for real estate investments not only – as already mentioned – for the growth of the tourism sector, but also for a socio-cultural context that looks with growing interest to the university, innovation and culture.
How is the real estate supply in Puglia?
The real estate supply in Puglia is very diversified. It ranges from town’s apartments to luxury villas in the countryside or seaside. However, buying a property in Puglia also means to invest in traditional buildings that characterize this region.
– Trulli. It is the typical traditional Apulian building. Puglia is the only place in the world where you can find these stone structures with conical roofs. The greatest concentration of Trulli is in Valle d’Itria, a geographical area between Alberobello and Ostuni, but it is possible to find Trulli also in the municipalities of Noci, Putignano, Castellana Grotte, Ceglie Messapica, and others even further).
– Other stone traditional buildings. Lamie, Casedde, Casili, Pagliari are just some of the other traditional Apulian buildings. Often they make up a single property together with the Trulli.
– Masserie. Masseria is an ancient patronal house usually with a prestigious unit – composed of several floors where the lord lived together with his family – and other service units (normally Trulli) where the peasants used to live in or to keep animals and work tools.
– Villas. In Puglia, there is a type of modern luxury villa with traditional forms and local materials. They are unique, welcoming, sophisticated dwellings, but always in harmony with nature; beautiful examples of how past and present can be exalted together.
How is real estate demand in Puglia?
The demand is also very diverse. However, there have been dynamics that have characterized it in recent years. Besides the dynamism of the internal market due to the factors listed above, Puglia is increasing interest from non-Puglia investors.
We are talking about investors from other regions of Italy (typically from the north) and foreigners. According to Gate-away.com, a website specialized in selling houses to foreigners, Puglia, exceeds Lombardy, getting the second place (after Tuscany) among the Italian regions where foreigners look for a property.
We can divide this type of demand into two sub-demands. One looking for a house for exclusively personal use and another one searching a property that can also produce a yield through a short rent.