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The property market is booming on the costa dei trulli

In April, both business and prices were up by 10 percent

The tourist property market is booming on the south coast of Bari, known as the Costa dei Trulli. “Demand is high in Monopoli and Polignano a Mare, in particular for both investment properties for tourist rentals (Polignano alone has 473 properties on the short-term rental market, 195 guesthouses, 114 B&Bs, 94 holiday homes and 11 hotels), that are becoming increasingly more upmarket and professionally managed, as well as second homes,” explains Stefania Fiume, Italian Federation of Professional Estate Agents (FIAIP), tourist delegate for the province of Bari and owner of Uliveus estate agents. “Polignano has now become an international brand, thanks in part to the international publicity it has received (Booking.com voted it the most welcoming tourist destination in the world in 2023). Monopoli and Fasano are also extremely popular because they offer properties immersed in nature. They are also able to offer a traditional seaside holiday combined with other cultural events (exhibitions, concerts, open-air cinema and events centred on food and drink). This means that properties can also be used in the low season, either as tourist rentals or by the owners themselves. Finally, the impact created by Borgo Egnazia and other luxury resorts in the area is not to be underestimated, as they have attracted a wealthier clientele able to spend a bit more.Marika Arborea from the Bari Bodini Group claims that “the tourist property market in Monopoli, Polignano and the South Coast of Bari in general has grown by 10% compared to the same period last year, both in terms of prices as well as the amount of business conducted. In April, residential properties in Monopoli were going for €2,071 per square metre, and €2,412 per square metre in Polignano a Mare. These are the most sought-after locations thanks to their historical/architectural interest typified by the traditional Apulian landscape of the historic centres, not to mention their clear blue skies an d beaches with crystal clear waters. The countryside, warmed by the sun for most of the year, is dotted with ancient olive trees and traditional lime or stone properties, such as farm buildings and trulli.” For Maurizio Carolillo, General Manager of Red Carpet estate agents of Monopoli, queen of the second home market on the Costa dei Trulli is the fishing town where her estate agents are based. As she explains: “Monopoli, pearl of the Adriatic, is currently attracting the most interest. However, the downside to this popularity is that property prices are increasing and showing no signs of stopping, which is unjustifiable in many cases. This price rise risks pushing the buoyant tourist property market towards destinations that are more economically viable”. The most sought-after property for Italians from Lombardy and Veneto “with an average budget of around €300,000 is a house with sea views very close to the coast (houses in historic old towns are particularly popular), as well as farmhouses and trulli for those with a little more to spend,” explains Silvia Natillo, broker and owner of Re/Max Oltre of Bari. She adds that: “Sympathetic renovations are in highest demand, perhaps with a modern touch where the historic core cannot be preserved. Rather than rebuilding a “fake”, completely contrasting materials are used and a clean style adopted. A modern touch can also be seen in the furnishings, adopting a minimalist style that accentuates the architectural beauty of the historic property and creates a wonderful contrast. Cheap, traditional peasant furniture is recycled, repurposed and given a new lease of life, while the use of items made by local craftsmen and women is also very widespread”. 

Turnkey properties that have already been restored are unquestionably preferred by both Italians and overseas investors alike. “But a caveat also has to be made here”, continues Carolillo. “Overseas investors would always prefer a property ripe for renovation but are often warned right from the start about the cumbersome bureaucratic process that a sympathetic restoration project involves. The UK in particular has been broadcasting a host of television programmes on buying a property abroad for more than twenty years (on which we have often been invited to appear over the years). When restoring a property, it is always advisable to contact estate agents who can guide investors through the documentation and bureaucratic part of the project”. Prices are highly variable. According to Natillo, “a newbuild in Polignano or Monopoli is almost as expensive as in Bari itself, ranging from €2,600 to €3,500 per square metre. But this criterion cannot be taken as a rule of thumb when it comes to a historic property. The value of a property is based on a series of parameters: location (sea or countryside); logistics (how easy it is to reach, proximity to town or local amenities, distance from the airport); privacy (isolated or in an urban setting but still benefitting from a private position); view; condition; historical-artistic value; fungibility; potential in terms of its intended use; and ability of the property to generate an income”. Finally, what does the future hold? “The regional administration,” the broker and owner of Re/Max Oltre concludes, “is now focussed on the importance of the tourism sector and on the activities it generates, including the buying and selling of properties to Italian and overseas tourists. We are therefore seeing a rise in interest from investors of all kinds. However, I would like to see renovation companies invest a bit more to increase the perceived value of the properties”. Marika Arborea adds that “there are many new projects in the pipeline in Monopoli, including an €80-million investment for a new tourist centre”.

Published on Ville&Casali July 2023
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