Property In Puglia - The Situation Of Its Real Estate Market

Puglia is the wonderful region located at the heel of Italy and it has been attracting loads of home investors both from Italy and from overseas. Its red soil, gorgeous olive groves, tourquois seas and blu skys keep fashinating its visitors. However, the financial crisis that hist world's property markets has passed by here too, and how has Puglia reacted?

Well, the tourist locations on the coast saw a slight price decrease by 3.8% in the second half of 2009, but overall the region is holding well its market. Looking more closely into its main areas we notice that Gargano, the area located in the northern part of the region, was quite stable in its property values, particoularly the beautiful city of Vieste. Here, the majority of the property buyers are professionals and businessmen from Northern Italy, mainly interested in pricely homes, favouring detached houses or apartments with independent entrance.

Among the most dynamic areas in recent times there is the North shoreline of this city, with prices that are between €2300-€2500 per square metre. due to the several redevelopment works that have been done, this area is now much more attractive for investors across the world. Also the luxury villas with sea views, located on the surrounding hills are of some interest, with values around 3000 euros per sqm. For a two bedroom home hosting four people, the average rental price requested is 1200 euros in June or September, 2000 in July, 2700 in August.

Another part that does not seem to know crisis for its second home market is the wonderful Salento area, on the furthest southern tip of the region. Especially in the part of land that goes from Castro to Santa Maria di Leuca, where the Ionian and Adriatic seas meet, where buyers looks mainly for detached houses and, lately, also for the typical "pajare". It is an ancient rural building, very similar to "trulli", and often lay completely unrestored. They have a habitable surface of about 25-30 square metres, even though can be found two or more set in a row, giving the possibility to increase their size. The average price is about €50,000 for a pajare that needs to be restored.

The property buyers interested in the Salento coast, among whom there are also many British, Americans and Germans, show a strong attaction for detached homes located on the area's stunning cliffs overlooking the sea, despite their high prices that start from €500,000. The wonderful town of Gallipoli, which is still in Salento, has seen an increase in demand for second homes, maybe pushed by a slight down-turn in prices registered in the second half of 2009. Homes located in its historical centre attract ever more amateurs searching noble properties that maintains local features. The main sought-after characteristic is the indipendent entrance and prices are among €2000 and €2300 per square metre.

The holiday rental market here offer good income yield to its investors as the demand remain very strong: for a one bedroom apartment, sleep four, the average rental prices are €1000 for the whole month of June or September, €1800 for July and €3000 for the month of August.