When authorities in depopulated Italian villages started offloading hundreds of empty old homes for a song, they were taking a bet on whether anyone would take the bait. Buying one of these crumbly properties requires extensive renovation, and Italians had never shown interest in recovering abandoned dwellings.
But when buyers from abroad started flooding mayors’ mailboxes with requests and hopped on planes to embark on house hunts, in no time locals in once offbeat and quiet spots were witnessing a property stampede that has led to an unexpected ‘Renaissance.’
Where silence once ruled, now there’s a new cosmopolitan buzz, and a mix of foreign languages can be heard chattering away in the cobbled alleys. Dozens of towns are now selling super cheap homes to lure foreigners, triggering growth and breathing new life into the real estate and job market with a huge economic impact.
Where silence once ruled, now there’s a new cosmopolitan buzz.
In many places hundreds of crumbling old buildings have been snapped up with extensive renovations, including hiring local architects, surveyors and builders, amounting to millions of euros of economic activity. Teams of extra notaries are now being recruited to speed up sales. There are new restaurants, shops, boutiques and wedding planners, while new high-speed internet investments have been made to lure lucrative digital nomads.
Sambuca – the new Sicilian hotspot
Sambuca Di Sicilia, in deep rural Sicily, has been the most successful hotspot to date. Since 2019, when the town hall first auctioned a dozen crumbly buildings for a starting price of one euro, the village has undergone a revival. A second batch of homes was put up for sale in 2021 for a symbolic €2.
According to local authorities a total of roughly €100 million has so far flown in, positively impacting the rural economy, and in spite of the pandemic slowdown. Another €20 million is expected to flow into town in the coming months when a third batch of town-owned properties in need of major fixes will be auctioned at a starting price of €3, which will draw in even more renovation and tourist money.
“Twenty new B&Bs have opened since 2019, while before there was just one. The cheap homes’ sales have generated some €5 million while overall renovations are worth over €30 million,” Sambuca’s mayor Giuseppe Cacioppo told Fortune.
Sambuca’s global spotlight has spurred public investments with roughly €40-€50 million earmarked for improving roads and reviving old underground canteens. The village also recently got its first helicopter pad for emergencies.
The arrival of foreigners seeking to grab a sunshine spot by purchasing a cheap dwelling, who end up staying at least one week, has led to a 200% increase in tourism, according to Cacioppo, generating a €20 million positive impact on the territory. Sambuca’s wineries and archaeological sites have registered increases in visitors. All cheap homes auctioned were eventually sold to the highest bidder for between €1,000 to €25,000. Most foreign buyers who did not make the cut decided to purchase more expensive homes in need of little work.
A total of over 200 empty homes have been sold in Sambuca since 2019, reviving the local real estate sector. Thanks to the high demand, many families were finally able to get rid of their empty ancestral houses that had been rotting under the sun for decades.
“Alongside new B&Bs, also taverns, wine bars, artisan shops, supermarkets, car rentals and theaters opened, while local artisans, builders, carpenters, surveyors, cleaning services, architects and engineers are now busy in the restyles,” says Cacioppo.
€1 homes and € 500,000 palazzos
Another town that has seen benefits from the scheme is Mussomeli, near Sambuca. Local authorities have created a multilingual agency that sponsored homes abroad, taking tourists on guided tours of the abandoned dwellings. Properties on sale included dilapidated one-euro dwellings and aristocratic palazzos for €500,000, offering buyers a taste of the lifestyle seen in the hit TV show The White Lotus, for a steal.
450
The number of properties sold to foreigners in Italy’s Mussomeli.
According to deputy mayor Toti Nigrelli, since 2017 roughly 450 properties have been sold to foreigners, mostly Brits, generating a €50 million cash flow through restorations and conveyancing costs, benefitting local enterprises. The impact on tourism has also been significant. Mussomeli’s hotel sector has seen a rise in revenues of roughly €11 million following the arrival of hundreds of interested buyers, while restaurants have reportedly made €13 million. A few buyers have invested in new businesses, opening new hostels and B&Bs.
“It’s hard to calculate how much each visitor and buyer then spends on the ground, but the housing scheme has had a multiplier effect on the entire local economy”, says Nigrelli.
Then there’s Latronico, in deep Basilicata – albeit on a smaller scale. A place that wasn’t even on the map, unknown even to most Italians, it became globally popular when a team of enthusiastic young locals launched a website showcasing empty homes on sale and for rent. Team leader Vincenzo Castellano, a lawyer and former deputy of Latronico created a multilingual platform called ‘La Tua Casa a Latronico’ (your house in Latronico’) in 2018, posting photos and details of the available properties. He started liaising between owners no longer interested in keeping void homes and interested buyers. Most homes on sale are more or less in need of a makeover, and some are even furnished and turn-key.
The more expensive ones, old farmhouses just outside the historical district, come with acres of annexed land, boasting blossoming orchards and olive groves.
The promoters of these schemes are also determined the property stampedes won’t contaminate the authentic soul and southern Italian vibe of their villages.
“In the past three years, over 50 properties have been sold, mostly to Americans, for a price range of €2,000-€300,000, generating over €2 million roughly. Over €250,000 have so far been spent by the new owners on renovations, and more works are underway”, says Castellano.
The estimated economic impact on Latronico’s territory is currently around €2.5 billion, but the figures keep rising as word of mouth spreads abroad about the wonders of this remote village frozen in time, surrounded by nature and thermal baths, which is luring many artists from the United States.
There are balances to be struck. The promoters of these schemes are also determined the property stampedes won’t contaminate the authentic soul and southern Italian vibe of their villages, where a slower-paced lifestyle and old traditions survive. Thanks to a boost from TV’s The White Lotus and a smart campaign from the region’s mayors, the future for Italy’s rural south has never looked brighter.
