Is buying a property in Cagliari a good investment?

Last updated on December 29, 2023

Yes, the analysis of Sardinia's property market is included in our pack

If you've admired the historic sites and Mediterranean charm in Cagliari, you might consider making this Sardinian city your next property investment.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Italy, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Cagliari?

Cagliari, the capital of Sardinia has grown increasingly popular as a property destination, especially in recent years.

What makes Cagliari stand out in the real estate market is its unique blend of cultural heritage, stunning natural landscapes, and a vibrant urban lifestyle. It's like getting the best of both worlds, the charm of a historic city combined with the allure of Mediterranean coastal living.

When you think about Cagliari compared to other areas in Sardinia, there are some key differences. For one, Cagliari offers a more urban experience. You have access to a wider range of amenities from shopping centers to top-notch restaurants and cultural events.

It's a hub of activity that you might not find in the more rural or quieter parts of Sardinia. This urban aspect makes it a particularly attractive option for those who love city life but also want to enjoy the natural beauty and relaxed pace that Sardinia is known for.

The rise in popularity of Cagliari as a property destination can be traced back to the early 2000s. This was when Sardinia started gaining international recognition as a luxury travel destination.

As more people discovered the island's beauty, they also began to notice Cagliari's unique charm. The trend has been steadily growing, and it seems like it's here to stay.

The city's property market has shown resilience even in fluctuating economic conditions, largely due to its enduring appeal to a diverse range of buyers.

Speaking of buyers, Cagliari attracts a wide spectrum of people. You'll find young professionals drawn to the city's dynamic work environment and rich cultural scene.

Then there are retirees who are looking for a serene place to enjoy their golden years, with easy access to healthcare and leisure activities. It's also popular among investors who see potential in the city's growing tourism and real estate market.

However, it's important to consider some of the potential downsides. Being a popular destination means that certain areas of Cagliari can get quite crowded, especially during peak tourist seasons. This might not appeal to those seeking a more secluded or tranquil environment.

Additionally, the popularity of the city can drive up property prices, making it less accessible for some buyers. And, like any urban area, there are challenges related to traffic and urban development that might not be everyone's cup of tea.

So, while Cagliari offers a unique blend of urban convenience and natural beauty, like any property market, it has its own set of challenges and may not be the perfect fit for everyone.

But for those drawn to its vibrant culture and scenic landscapes, it remains an attractive option in the Sardinian real estate market.

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Why is Cagliari a nice place to live?

Living in Cagliari offers a unique blend of lifestyle and culture that many find irresistible, also the city is known for its rich history, which is reflected in its architecture and cultural events.

Imagine walking through streets lined with historic buildings, while also having access to modern amenities. It's a place where the past and present coexist beautifully.

The lifestyle in Cagliari is typically Mediterranean, characterized by a relaxed pace and a strong emphasis on enjoying life.

This is evident in the local dining scene, where you can indulge in delicious Sardinian cuisine at places like Ristorante Antica Cagliari or Trattoria Lillicu, known for their authentic flavors.

Cagliari has a welcoming and growing expat community. This is partly due to the city's universities, such as the University of Cagliari, which attract international students, and the thriving tourism industry that brings in professionals from around the world. Expats often find it easy to integrate, thanks to the warm and friendly nature of the local Sardinians.

Cost of living in Cagliari can be considered moderate. While it might not be as low as in some other parts of Italy, it's generally more affordable compared to major cities like Rome or Milan. This affordability extends to various aspects of living, from housing to everyday expenses.

When it comes to safety, Cagliari is relatively safe. Like any city, it has its areas of concern, but overall, residents and visitors can enjoy a secure living environment. This sense of safety is crucial for families and individuals looking to settle down in a new place.

In terms of amenities and facilities, Cagliari is well-equipped. The city has several hospitals and medical facilities, including the Azienda Ospedaliero Universitaria di Cagliari, known for its high standard of healthcare.

Educational needs are well catered for, with schools like the International School of Cagliari providing quality education. For shopping and leisure, the city offers various options, including the large shopping center La Corte del Sole.

The infrastructure in Cagliari is commendable. The roads are generally well-maintained, making driving around the city a pleasant experience.

Utilities and services like water and electricity are reliable. Internet connectivity is good, with many areas having access to high-speed internet, which is essential in today's connected world.

Access to Cagliari from other parts of Sardinia and beyond is quite straightforward. The city has its own airport, Cagliari Elmas Airport, which offers both domestic and international flights. This makes travel in and out of Cagliari convenient.

Within Sardinia, the city is connected by a network of roads and highways, making it accessible from various parts of the island.

Public transportation in Cagliari includes buses and trains, managed by companies like CTM and Trenitalia. These services provide good coverage of the city and its surrounding areas. For those who prefer not to drive, these public transportation options offer a convenient and efficient way to get around.

All these factors together make Cagliari not just a nice place to live, but a place where you can enjoy a high quality of life, surrounded by beauty, culture, and a friendly community. Whether you're a young professional, a family, or a retiree, Cagliari has something to offer for everyone.

How much does it cost to buy real estate in Cagliari?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Italy.

The real estate market in Cagliari offers a diverse range of property types catering to different preferences and budgets.

You'll find everything from apartments and traditional houses to luxury villas. The demand for these properties varies, but there's a noticeable trend towards apartments, especially in the city center.

This demand is driven by a mix of local residents, expatriates, and investors, who value the convenience and amenities that city living provides.

When it comes to the types of properties available, there's a mix of both new developments and resale properties. New developments are on the rise, catering to the growing demand for modern living spaces. These often come with added amenities like security, parking, and energy-efficient designs.

On the other hand, the resale market includes a variety of properties, from historic homes to more recently built residences.

The price range for properties in Cagliari can vary widely depending on the type, location, and condition of the property.

Generally, prices per square meter can range from about €2,000 to €4,000 or more for standard apartments. For luxury properties or those in highly sought-after locations, prices can be significantly higher.

Over recent years, property values in Cagliari have shown a steady increase. This trend is influenced by the city's growing popularity as a tourist destination, its economic stability, and the appeal of its lifestyle.

With Sardinia being an attractive spot for both national and international buyers, the property market in Cagliari has benefited from this increased attention.

Looking ahead, there are several factors that could influence the real estate market in Cagliari. Upcoming developments and city planning changes are always key factors to watch.

For instance, any new infrastructural developments, like improved transportation links or commercial areas, could positively impact property values in nearby neighborhoods.

Predicting the future of the real estate market can be tricky, but given the current trends, it's reasonable to expect continued interest in Cagliari properties.

Factors that indicate a potential increase in value include the ongoing demand for housing, the city's appeal as a tourist and expatriate destination, and the potential for further economic development in the region.

Where is the best area to buy a property in Cagliari?

Choosing the best area to buy a property in Cagliari largely depends on your personal preferences and needs.

Cagliari is a city with diverse neighborhoods, each offering its own unique atmosphere, property types, and pricing.

Let's start with the historic heart of the city, Castello. This area is known for its charming medieval streets, impressive historical buildings, and panoramic views of the city and the sea. Properties here are mostly historic apartments and some palazzos.

Because of its cultural significance and central location, prices in Castello can be quite high, but it's an excellent choice for those who love history and want to be in the center of everything.

Moving towards the coast, you'll find the Poetto area. Known for its beautiful beach, this part of Cagliari is perfect for those who prioritize seaside living. Properties here range from modern apartments to villas, with prices varying depending on the proximity to the beach. Poetto is ideal if you're looking for a more relaxed lifestyle with easy access to outdoor activities.

If you're interested in up-and-coming areas, look towards Quartu Sant'Elena. Adjacent to Cagliari, this area is experiencing growth and development, making it an attractive option for investment.

Property prices here are generally more affordable compared to the city center, and the area offers a mix of traditional and modern housing options.

For those seeking a more residential experience, Villanova is a great area to consider. It's a quiet and charming neighborhood with a mix of old and new properties, including apartments and townhouses.

The area is also reasonably priced compared to more central locations, making it a good option for families or those looking for a more laid-back environment.

On the contrary, some areas might be less advisable depending on your preferences. Areas that are further from the city center or the coast, like some parts of Is Mirrionis or San Michele, might not offer the same level of amenities or charm as more central neighborhoods.

These areas might be more suitable for those looking for lower prices and don't mind being a bit removed from the main attractions of Cagliari.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Italy.

Area	Atmosphere	Property Types	Price Range	Suitability
Castello	Historic and cultural	Historic apartments, palazzos	High	History lovers, city life enthusiasts
Poetto	Seaside and relaxed	Modern apartments, villas	Varies (proximity to beach)	Beach lovers, outdoor enthusiasts
Quartu Sant'Elena	Growing and developing	Traditional and modern housing	Affordable	Investors, those seeking growth areas
Villanova	Quiet and residential	Apartments, townhouses	Reasonable	Families, those seeking a peaceful environment
Is Mirrionis/San Michele	Less central, more remote	Varied	Lower	Those seeking affordability, away from the main attractions

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Is there a strong rental demand in Cagliari?

Cagliari does have a strong rental demand, but the nature of this demand varies.

The city's appeal as a tourist destination, combined with its status as an academic and administrative center, creates a dynamic rental market catering to both short-term and long-term needs.

When it comes to short-term rentals, the demand is primarily driven by tourism. Tourists, both domestic and international, are attracted to Cagliari for its beautiful beaches, historical sites, and vibrant culture.

They usually look for properties that are conveniently located near major attractions, such as those in the Poetto area near the beach or in the historic center like Castello.

The types of properties in demand for short-term rentals are typically furnished apartments, offering amenities like Wi-Fi, air conditioning, and, ideally, a view or proximity to the sea or other tourist attractions.

On the other hand, long-term rentals are sought after by students, professionals, and families. The University of Cagliari attracts students and academic staff who seek housing during the academic year.

Professionals, especially those working in the public sector or in the growing tech industry, also contribute to the rental demand. They generally prefer residential areas like Villanova or San Benedetto, which offer a blend of tranquility and accessibility to the city center.

Families and expatriates might lean towards areas like Quartu Sant'Elena, which offers a more suburban feel.

Properties that reduce vacancy and are in high demand for long-term rentals typically include features like good connectivity, proximity to schools or universities, and access to public transportation. Apartments and houses that offer these amenities are more likely to attract stable, long-term tenants.

Regarding returns on investment, properties in Cagliari can offer attractive yields, although these can vary widely depending on the type and location of the property.

For short-term rentals, properties in tourist-heavy areas can command higher rents, especially during the peak season. For long-term rentals, yields might be lower, but they offer the stability of continuous occupancy.

In terms of properties gaining more demand and potentially better yields, those located in areas with a mix of tourist appeal and livability are increasingly popular. Properties that cater to the growing trend of "workations", where people combine work and vacation, are also on the rise.

These properties typically offer features that cater to remote workers, like high-speed internet and a comfortable working space, in addition to the usual amenities.

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Is it easy to buy a property as foreigner in Cagliari?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Italy.

Buying a property as a foreigner in Cagliari, Sardinia can be relatively straightforward, but there are certain aspects that need careful consideration to ensure a smooth transaction.

Firstly, there are no specific regulations or restrictions for foreign buyers in Italy, which includes Cagliari. This means that foreigners have the same rights as Italian citizens when it comes to buying property.

However, it's important to be aware of Italy's legal and bureaucratic processes, which can be complex and time-consuming.

The purchasing process typically involves several steps. After finding a property, you would make an offer and, if accepted, sign a preliminary contract (compromesso) and pay a deposit.

This is followed by the due diligence process, where all the necessary checks on the property are carried out. The deed of sale (rogito) is signed in front of a notary, and the remaining balance is paid.

One of the primary risks associated with property investment in Cagliari, as with anywhere, is the potential for unexpected costs. These can arise from necessary renovations, legal fees, or property taxes that weren't initially apparent.

Additionally, the property market can be unpredictable, and there's always the risk that the value of the property may not appreciate as expected.

A classic pitfall for foreign buyers in Italy is underestimating the importance of bureaucracy and legal procedures. For example, each property in Italy has a codice fiscale (an Italian tax code), and you will need one to buy a property.

Also, property boundaries may not always be clear, and it's crucial to ensure that there are no outstanding claims or disputes on the property.

Working with a local real estate agent or lawyer is highly recommended. They can provide invaluable guidance on the local market, assist with navigating the legal system, and help ensure that all necessary checks and procedures are followed. They can also assist in overcoming language barriers and understanding local customs and practices.

As for exit strategies, property investors in Cagliari commonly consider either selling the property or renting it out. Selling can be a way to realize capital gains, especially if the property's value has increased.

Renting out the property, either as a long-term rental or a holiday let, can provide a steady income stream. It's important to note that the success of these strategies depends on market conditions and the location and type of property.