South Salento: a boom in properties to be enhanced
Farmhouses, historic palaces and renovation projects are attracting foreign investors and bringing inland Salento back into focus
South Salento, a vast territory of Greek origin that includes cities such as Lecce, Otranto, Nardò, Gallipoli and Galatina, along with numerous villages scattered between countryside and sea—from Castro to Santa Cesarea Terme, and down to Leuca, Santa Caterina and Santa Maria al Bagno—is experiencing a strong surge in real estate appeal. “An ancestral, magical land, increasingly in demand because it represents, in a way, the last paradise,” explains Silvia Messeri, office manager at Engel & Völkers Salento, noting that 98% of buyers come from abroad, particularly from the United States, Belgium, Germany, Switzerland, the Netherlands, France, Poland, Israel and Lebanon. Lecce remains at the center of this interest thanks to its artistic heritage and quality of life, with property values on the rise. Demand focuses mainly on countryside masserie, rural palaces and homes in historic centers built in Lecce stone, often in need of renovation. Renovation itself is now the key driver of the market, also supported by the MiniPia Puglia 2024 scheme: “It has enabled the recovery of 18th- and 19th-century historic properties, transforming them into boutique hotels, especially in Lecce,” says Antonio Morello, sales manager at Interno 10. However, he notes that the capital is now saturated and attention is shifting inland, where in Melpignano a 1,000 sqm historic building can be purchased for around €400,000. The new MiniPia and Pia initiatives, however, come with strict requirements regarding quality standards, sustainability, digitalization and a minimum number of rooms, often discouraging investors. “As of March 31, 2025, 65 MiniPia and 17 Pia projects had been submitted in Puglia,” observes Christian Russo, project manager at Grimaldi Franchising.
Independent properties in need of renovation, featuring star-vaulted ceilings and original floors, remain among the most sought-after, particularly by foreign buyers interested in enhancing authentic homes, as highlighted by Loredana Latino of Coldwell Banker Gruppo Bodini. The most popular areas are Lecce, Nardò and Galatina, though interest is also growing in smaller, quieter villages close to both services and the sea. The most in-demand property types include one- or two-bedroom homes and villas with gardens or terraces, both along the coast and in historic centers. Otranto stands out as one of the most charming destinations, with demand often exceeding supply, while Gallipoli remains one of the most popular tourist hotspots, particularly in Baia Verde, Lido San Giovanni and Rivabella. San Pietro in Bevagna and Campomarino are highly sought after for holiday villas, as are the seaside areas of Nardò—Santa Maria al Bagno and Santa Caterina—and Salve, which attract foreign buyers looking for renovation projects. “The historic center of Nardò still retains the character of a living village,” adds Lorena Muci, FIAIP associate at Immobiliare Studio Casa, explaining that demand ranges from ground-floor homes of 70–100 sqm with gardens to two-level properties with terraces or rooftop spaces. Prices range from €2,000 to €2,300 per sqm for mid-sized renovated properties, up to €2,800 for smaller homes with terraces, while properties to be renovated range between €500 and €1,000 per sqm. Inland, Galatina and Cutrofiano average around €764–765 per sqm, while Ugento, Gemini and Torre San Giovanni range between €1,136 and €1,333 per sqm. Otranto remains the most expensive area, with prices between €2,500 and €3,200 per sqm in the historic center. “Properties are purchased both for investment and personal use, with budgets ranging from €400,000 to over €1 million,” adds Silvia Messeri, emphasizing that Salento is chosen more for its quality of life and privacy than as a traditional luxury destination.
The appeal of the area also extends to its coastline, particularly the stretch between Punta Palascia, near Capo d’Otranto, and the Sanctuary of Santa Maria de Finibus Terrae, known for its dramatic caves and inlets. “Here, demand from international buyers in the luxury segment is growing,” notes Luigi De Mitri of ComproCasa. Christian Russo also highlights villages such as Specchia and Presicce-Acquarica, among Italy’s most beautiful, as worthy of investment. From an investment perspective, coastal locations offer higher returns thanks to strong tourist demand, while inland areas provide lower entry prices and significant potential for appreciation; Ugento and the seaside areas of Salve represent a balanced option between investment and personal use. At the same time, the short-term rental market continues to expand: “In 2025 the sector is undergoing a transition due to new regulations, but it remains highly dynamic,” explains Antonio Barbara, CEO of Barbarhouse, which manages over 2,000 holiday homes. Puglia confirms its position as one of Italy’s leading regions for short-term rentals, with more than 26,000 units in the province of Lecce alone, and forecasts indicate booking growth of over 30% compared to 2024. The most dynamic areas remain Salento, Valle d’Itria and the Bari area, with increasing demand for renovated masserie, trulli, luxury villas and historic homes. “Unique properties in terms of style and features are the most sought-after, especially among international clients,” Barbara concludes.