The Itria Valley is in great demand
American and British investors are on the lookout for historic properties, particularly farmhouses and traditional Puglian dry stone huts known as trulli, ripe for conversion into tourist accommodation. But supply is starting to run out...
“With its beautiful landscape and rich culture, theItria Valley is a very popular area for second homes, particularly following the announcement that it will host the G7 in 2024”, Marika Arborea, Broker Manager at the Bari branch of Coldwell Banker Gruppo Bodini, explains to Ville&Casali. “The event has undoubtedly raised the profile of the region even further, with interest increasing both among Italians, as well as overseas buyers from various parts of Europe and the USA. The most sought-after properties at the moment are trulli, farmhouses and lamie (stone buildings formerly serving as stalls or tool sheds), thanks to their unique charm and history”. And the prices? “They vary depending on the type and condition of the property”, replies the expert. “For example, trulli range from around €40,000 for one in need of complete renovation, to more than €1,000,000 for a fully-renovated property with land. The most popular areas in the Itria Valley are Locorotondo, where the market is really saturated right now, and Martina Franca. These are closely followed by Ostuni and Alberobello, in Alto (Upper) Salento”. Long-time estate agent Pietro d’Amico, head of the d’Amico InvestmentGroup, also confirms that trulli are the most sought- after property in the Itria Valley. “But also farmhouses, which can increase in value by as much as 10 percent every year”, he adds.
Yet 2024 has started slowly following a sensational 2023. Several agents that we interviewed actually complained. “But as of March this year, international investors from Northern Europe and the USA have started to return”, reveals Damiana Disanto from Puglia Charme. “They are looking for fully-renovated trulli, farmhouses or lamie, as well as new villas built in a traditional or Mediterranean architectural style”. This seems to be one of the latest trends when it comes to buying property between Upper Salento and the Itria Valley. As Damiana Disanto explains, “In the Ostuni countryside, prospective buyers can now purchase a plot of land with planning permission already in place (including for a swimming pool and with planning fees included) for a 95-square metre porticoed villa boasting at least 3 bedrooms and 3 bathrooms. The overseas buyer can move into the property as soon as it is complete or use it as a second home and rent it out. In high season, it could achieve as much as €4,000 to €5,000 per week”
DREAM FARMHOUSES AND VILLAS FOR RENT
Dream villas, trulli and lamie that are rented out for as much as €18,000 per week; or farmhouses near the sea boasting 3 bedrooms, swimming pool, round-the-clock butler, cook, babysitter and other services you could expect to find in a luxury hotel, for up to €30,000 per week. The difference being that here you can feel the charm and history of the place, far from the hustle and bustle. Madia Roma, owner of Puntocasa in Ostuni, who has just opened another estate agents in Cisternino, specialises in this market. “My client-investors purchase dilapidated properties, renovate them and put them back on the market, entrusting their management to me. This type of accommodation is especially popular with American, British and Austrian families”. However, supply of this kind of property in particular is starting to dwindle. “ The demand for 700-800-sqm farmhouses to rent out remains high”, the estate agent explains, “but prices have gone up, leading many to buy cheap, run-down properties to renovate themselves. In Ostuni, a property of this kind, with swimming pool and 2-3 hectares of vineyards, olive grove or almond grove, would cost between €1.5 million and €3 million. However, the same property in Cisternino could cost as much as 30-40 percent less”. This lack of housing stock is forcing many potential buyers to look further from the sea, in smaller towns like Ceglie Messapica or Villa Castelli (Brindisi), the southernmost tip of the Alta Murgia National park between Upper Salento and the Itria Valley, with fewer than 30,000 inhabitants. In a small village like San Michele Salentino (Brindisi), for example, “an 80-square metre trullo with 4 conical roofs ripe for renovation, 25 km from Martina Franca (in the heart of the Itria Valley), would a l so cost about 30 percent less”, declares Francesca Urso from Salento Stone.
MARTINA FRANCA, HAPPY ISLAND
The difference between Locorotondo and Cisternino is clear, especially when visiting in the off-season. In contrast, Martina Franca is a hive of activity, with countless shops, bars and amenities, a far more lively urban hub than its two ‘sisters’ of the Itria Valley. This 50,000-population town is buzzing all year round and boasts a cinema, theatres and a hospital. “Where you eat well and there is no crime”, Claudio Pastore from Sefim and Italian Federation of Professional Estate Agents (FIAIP) Provincial Councillor, tells us. “It is becoming increasingly popular with Americans, the British, Germans, Belgians, the Swiss and the French”, he concludes, “but also Italians, particularly from Lombardy and Veneto. Trulli with 5 or 6 conical roofs offering some 80-90 square metres of floor space are the most sought-after properties, particularly if fully renovated. Budgets tend to range from €250,000 to €350,000”. There is no lack of stock, particularly for properties in need of renovation. We are talking about a 295-square kilometre rural area that stretches as far as Alberobello, the 39th largest area in Italy. “€100,000-€120,000 may be enough to secure one, but a further €150,000 would need to be invested for the renovation, including pool”, Pastore explains. But there is another trend that is gaining momentum: “Demand for entire historic buildings or apartments in town centres to be converted into B&Bs, or properties already used as tourist accommodation. Like two properties I currently have on my books: one dating back to the 17th century for €420,000 and the other a 19th-century building for €600,000”. No less popular are small 40-square metre properties in the historic centre, “which cost around €70,000-€80,000, if in good condition. This is also because they can be rented out all year round in Martina given the availability of schools, hospitals and other local amenities, not forgetting the Itria Valley Festival. This is in contrast to Locorotondo and Cisternino, where the rental market is more seasonal”.
Published on Ville&Casali June 2024
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