In recent years, after a long period of stagnation, in Italy is taking place a rebirth of the real estate market. Above all purchases for investment purposes – which up to two or three years ago constituted a fairly small part of real estate sales – are growing very clearly.
Certainly, the strong difficulties of the bond market have given a strong push: yields have been very low for years and now the possibility of obtaining capital gains is zero or at least marginal. Rather than earning less than 1% on a ten-year bond, it is much better to invest in a property that provides at least 4-5% net per year.
But to stimulate investments in the real estate sector is also another phenomenon that is radically changing the market: the growth of non-hotel tourism. This trend is also followed by Puglia, a region in great expansion whose rental property market has its very specific characteristics.
So why investing in a rental property in Puglia?
1. A TOURIST BOOM
The first reason for investing in a rental property in Puglia is that this region is experiencing a real boom in terms of tourism. Tourist flows of all sorts have been rising for over a decade and show no signs of abating. On the contrary, being a territory that still has so much to offer in terms of tourism, whose communities are working to implement services and the offer receptive to cope with the ever-increasing number of visitors, investing in a rental property in this region means betting in an even brighter future for this land rich in cultural and landscape beauties.
2. ONE OF THE HIGHEST YIELD
Unlike other Italian regions, the rental season – especially in some areas – is very long. Often it is possible to rent continuously for 7 months, from April to October. Moreover, especially in the last few years, and also here in a different way depending on the area, Puglia attracts international visitors with very high spending and purchasing power. All this means that Puglia guarantees one of the highest returns on the initial investment in Italy.
3. GOOD GROWTH PROSPECT OF THE PROPERTY VALUE
Another good reason for investing in a rental property in Puglia is that the real estate market in Puglia has excellent growth prospects. At the moment property prices in Puglia still represent excellent value for money. There are homes here to meet most budgets. The small rural houses that need restoration start at around € 30,000. Simple, modern two-bedroom villas start at around € 70,000, while three-bedroom properties cost around € 100,000. For € 250,000 you could get a villa by the sea, a three-bedroom house with a pool near a trendy town or a beautiful country house. The majestic Apulian farmhouses (Masserie) start at around € 400,000.
All this suggests that investing in Puglia right now is a great deal because in the medium to long term the values of the properties are definitely destined to increase.
4. PERSONAL USE AND PERSONALIZATION OF THE PROPERTY
By investing in a rental property you will have an income from the rent but you will also have the property available for personal use at any time of the year. Depending on your monetization needs, you can rent the house for longer or less time and therefore be able to use the property for more or less time. Puglia, thanks to its mild climate for most of the year, can allow both: rent it in the months in which there is greater demand and keep it for own use when the request decreases.
But not only: Puglia has a great variety in terms of the types of property to buy. You can invest in buildings that are unique in the world, such as Trulli (dry-stone houses with a conical roof with a fairy-tale appearance), Lamie (square houses with vaulted roofs), Masserie (robust, elegant farmhouses) or modern villas that recall traditional architectural elements. There is a property to invest in for all tastes, budgets and needs.
5. GOOD POLITICAL-SOCIAL-ENVIRONMENTAL CONDITIONS
Puglia is prosperous, safe and well managed, with good facilities and infrastructure. Not densely populated and without large cities, the region is characterized by a strong sense of community and a low crime rate. People know their neighbors and support each other. Puglia has fewer earthquakes than most of the entire Italian peninsula, low annual rainfall and in general is affected by very few natural disasters. From this point of view, buying a property in Puglia is a more than safe investment.
6. LOW MAINTENANCE COSTS
When you buy a rental property, even more than if you buy it for personal use only, you have to take into account maintenance costs every year, which is essential for having a good income from the rent. Well, excluding the renovation works of the Trulli and other stone-made buildings (which are usually quite expensive) the ordinary maintenance works are very cheap in Puglia. So your property will remain in excellent condition every year at a very low cost.
7. GOOD ACCESSIBILITY
As a place to buy a second home, Puglia has long been popular with northern Italians. Buyers from abroad, however, found the region a bit too difficult to access until the low-cost airlines started offering direct flights to Puglia in 2004. From then on, Northern Europeans (and not only) quickly began to fall in love with the “Heel of Italy”, and many of them have started to buy some attractive rental properties here. Today Bari and Brindisi Airports see flights from international destinations growing each year.
8. RELIANCE ON PROPERTY-MANAGEMENT AGENCIES
The owners who decide to invest in a rental property in Puglia but don’t have the possibility to manage it independently can rely on one of the property-management agencies that operate in the area and that insert the properties in the circuits of international tourist rentals, producing a constant income over time.
Puglia Paradise, besides being one of the villa management agencies with the highest performances in Puglia, offers a service of property finding and real estate investment consulting. So, if you are thinking to buy a rental property in Puglia, get in touch with us: we consider all the properties available on the market and then select for you a range of options based on your investment strategy and our profitability study.
Contact us to discover more.
