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Sardinia's real estate market shows strong momentum in June 2025, with property prices up 4.49% year-over-year and transaction volumes surging.
The island's property market has outperformed the Italian national average significantly, driven by international buyers who now represent over 60% of purchases. Coastal properties continue to command premium prices while urban centers like Cagliari are experiencing a robust recovery with 10% growth expected for 2024.
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Property prices in Sardinia averaged €2,420 per square meter in May 2025, marking a 4.49% increase from the previous year. Transaction volumes have surged by 64.5% between 2019 and 2023, with international buyers driving much of the demand.
| Market Indicator | Current Status | Year-over-Year Change |
|---|---|---|
| Average Sale Price | €2,420/m² | +4.49% |
| Average Rental Price | €13.61/m² | -2.51% |
| Transaction Volume Growth (2019-2023) | 64.5% increase | Highest in Italy |
| International Buyer Share | 64.5% | Significantly above national average |
| Most Expensive Province | Sassari: €2,952/m² | N/A |
| Most Affordable Province | Oristano: €1,066/m² | N/A |
| Average Mortgage Rate | 3.44% | Down from 2023 peaks |
What are Sardinia property prices like right now compared to last year?
Property prices in Sardinia have increased substantially compared to a year ago, with residential properties averaging €2,420 per square meter as of May 2025.
This represents a 4.49% increase from May 2024 when prices stood at €2,316 per square meter. The island has reached its highest pricing point in the past two years, demonstrating strong market appreciation.
Regional variations within Sardinia are significant. The province of Sassari commands the highest prices at €2,952 per square meter, while Oristano offers the most affordable properties at €1,066 per square meter. These price differences reflect varying levels of development, coastal access, and tourist appeal across the island.
Interestingly, while sale prices have risen, rental prices have moved in the opposite direction. Average rental rates sit at €13.61 per square meter monthly, showing a 2.51% decrease from the previous year.
This divergence between sale and rental prices indicates that purchase demand is outpacing rental demand, suggesting buyers are primarily interested in ownership rather than investment properties.
Have home prices in Sardinia gone up, down, or stayed flat over the past year?
Home prices in Sardinia have clearly gone up over the past 12 to 18 months, showing consistent upward momentum across most market segments.
The 4.49% annual increase in property prices represents steady appreciation rather than explosive growth. This measured increase suggests a healthy market that's avoiding bubble territory while still rewarding property owners with solid returns.
Luxury coastal properties have experienced even stronger growth. Prime residential prices in Costa Smeralda increased by 18% in 2023, representing the second-highest growth rate in Italy. Porto Cervo within Costa Smeralda maintains some of the highest prices in Sardinia at €19,375 per square meter, with maximum values reaching €27,000 per square meter.
Mid-range properties in urban areas have also seen appreciation, though at more moderate rates. Cagliari properties average €2,203 per square meter, making them more accessible than luxury coastal areas while still showing positive price trends.
The only segment showing price weakness is the rental market, where rates have declined by 2.51% year-over-year, suggesting that investors focused solely on rental income might face challenges.
Are property transactions in Sardinia increasing, stable, or declining?
Property transactions in Sardinia are dramatically increasing, with the island experiencing a remarkable surge in real estate activity.
Sardinia recorded a 64.5% increase in property sales between 2019 and 2023, significantly outperforming the national Italian average of 26.3% for coastal locations. This represents the highest growth rate among all Italian regions during this period.
The momentum has continued into 2024 and 2025. Cagliari, the island's capital, experienced an 8% growth in real estate transactions in the first ten months of 2024, with expectations to close the year at 10% growth. This marks a significant turnaround from 2023's challenging 14% sales decline.
It's something we analyze in detail in our Italy property pack.
Seaside locations are seeing particularly strong transaction growth, with areas like Castiadas experiencing a 264.5% increase in sales. This surge reflects both domestic and international buyer interest in coastal properties.
Is buyer demand in Sardinia showing strength, recovery, or hesitation?
Buyer demand in Sardinia is showing clear signs of strength and recovery, driven by both international and domestic purchasers.
International buyers have become the dominant force in Sardinia's property market, representing 64.5% of all purchases between 2019 and 2023. This compares to a national Italian average of just 26.3%, highlighting Sardinia's exceptional appeal to foreign investors.
The international demand comes primarily from Germany, the United States, and Northern Europe. These buyers are attracted by Sardinia's combination of natural beauty, relatively affordable prices compared to other premium Mediterranean destinations, and Italy's favorable investment climate.
Domestic demand is also strengthening, with buyers increasingly looking for properties to generate income through short-term tourist rentals and long-term student housing. In Cagliari, 80% of buyers are purchasing their first home, with a similar percentage requiring bank financing.
Properties with outdoor spaces are in particularly high demand, with three-room and four-room apartments, along with villas with large gardens, representing the most requested property types.
What's Sardinia's current property inventory situation?
The property inventory situation in Sardinia reveals a supply-constrained market where the number of homes for sale is tightening rather than expanding.
| Supply Factor | Current Status | Market Impact |
|---|---|---|
| Overall Inventory Levels | Low and declining | Supporting price growth |
| Coastal Development | Restricted by 2km rule | Limited new supply |
| New Construction | 10% growth in some areas | Insufficient to meet demand |
| Average Time to Sell | 4 months (1-6 range) | Relatively quick absorption |
| Land Availability | Severely limited | Constraining future development |
Limited availability of land for new developments, particularly in coastal areas, restricts the supply of new properties and contributes to upward price pressure. Coastal protection regulations prohibit construction within 2 kilometers of the shore, which maintains supply constraints but also redirects development toward inland areas.
While new residential developments are growing by 10% in some areas, overall supply remains constrained due to regulatory limitations and geographical constraints. This fundamental supply-demand imbalance is expected to persist through 2025 and beyond.
How is inventory affecting price negotiations in Sardinia?
The tight inventory situation in Sardinia has shifted negotiating power firmly in favor of sellers, with buyers having limited leverage in price discussions.
Properties are selling with minimal discounts on asking prices, with almost all sales concluded at full price. This reflects the strong demand relative to available supply, giving sellers confidence to hold firm on their pricing expectations.
Average absorption times of around 4 months across all areas, with a range from 1 to 6 months, indicate a market where properties don't linger long. Prime coastal properties and well-located urban apartments often sell even faster, sometimes within weeks of listing.
The supply shortage means buyers often face competition for desirable properties, leading to situations where multiple offers are common. This competitive environment further reduces buyers' ability to negotiate significant price reductions.
Sellers in premium locations like Costa Smeralda are particularly well-positioned, with luxury properties often achieving or exceeding asking prices due to international buyer competition.
Which property segments in Sardinia are moving fastest?
The luxury segment in Sardinia is experiencing the most dynamic activity, particularly in premium coastal locations.
Costa Smeralda continues to dominate Italy's ultra-luxury segment with average property values of €15.2 million. This exclusive area saw prime residential prices increase by 18% in 2023, driven by 80% international buyers and extremely limited supply of premium coastal properties.
The mid-range market shows solid activity across urban centers, with properties featuring outdoor spaces in particularly high demand. Three-room and four-room apartments, along with villas with large gardens, represent the most requested property types in this segment.
Entry-level properties in urban areas like Cagliari are attracting primarily first-home buyers. With average prices at €2,203 per square meter, these properties offer more accessible entry points while still providing good connectivity and rental potential.
Properties suitable for rental income generation are moving quickly across all price segments. Both short-term tourist rentals and long-term student housing properties are seeing strong buyer interest.
Rural properties present mixed performance, with those offering good connectivity and infrastructure attracting steady demand, while remote locations with poor access are moving more slowly.
Which Sardinian neighborhoods are seeing the most real estate activity?
Coastal zones are unquestionably leading market activity in Sardinia, with premium seaside locations commanding the highest prices and strongest demand.
Costa Smeralda, Porto Cervo, and other northern coastal areas continue to attract the most international attention and highest prices. Porto Cervo maintains some of the highest values at €19,375 per square meter, with luxury properties regularly exceeding €20,000 per square meter.
Southern coastal areas offer more affordable options while still providing attractive seaside access. Towns like Castiadas have seen a 264.5% increase in sales, demonstrating strong buyer interest in these emerging coastal markets.
Cagliari, the island's capital, is experiencing strong recovery with significant transaction growth. The city attracts buyers seeking rental income opportunities, benefiting from better infrastructure and connectivity compared to rural areas. Urban properties here average €2,203 per square meter.
Inland and rural areas present mixed performance. While some central locations are experiencing steady demand for countryside living, particularly driven by remote work trends, areas with poor connectivity and infrastructure are seeing slight price declines. The shift toward rural living has created opportunities in previously overlooked regions, but success depends heavily on accessibility and amenities.
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How are mortgage rates and economic factors influencing Sardinian buyers?
Mortgage rates have stabilized around 3.44% as of Q2 2024, down from higher peaks in 2023, providing significant relief to property buyers in Sardinia.
The European Central Bank's rate cuts, beginning in June 2024, have provided substantial support to the market. Lower mortgage rates are translating to meaningful savings for buyers, with monthly payments reduced by approximately €85 on a typical €125,000 mortgage compared to peak rates.
Cagliari residents show a strategic approach to financing, with 50% of inhabitants choosing mortgages with immediate action and future renegotiation options. This reflects anticipation of further rate reductions that could provide additional savings.
These improvements in financing accessibility are supporting continued demand growth across all market segments. International buyers, who often finance their purchases, are particularly benefiting from the improved rate environment.
Further ECB rate cuts are anticipated through 2025, which could spur additional market activity. Rate reductions could save buyers up to €84 per month on standard mortgages, with potential for even greater savings if additional cuts materialize.
Are there new government policies affecting Sardinia's housing market?
The "Salva Casa" decree approved in July 2024 has introduced significant changes that are positively impacting Sardinia's property market.
- Simplified regularization procedures for minor building irregularities, making it easier to bring older properties to market
- New rules allowing smaller habitable units with minimum sizes of 20 square meters for one-room apartments
- Easier change of use procedures for converting commercial spaces to residential properties
- Streamlined processes for minor improvements like energy efficiency upgrades
- Reduced bureaucracy for property transactions and renovations
Coastal protection regulations continue to limit construction within 2 kilometers of the shore. While this maintains supply constraints and supports property values, it also redirects development toward inland areas.
It's a regulatory framework we examine thoroughly in our Italy property pack.
These policies are creating a more favorable environment for property transactions while maintaining environmental protections that preserve Sardinia's natural appeal.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the investor sentiment regarding Sardinian rental yields?
Investor sentiment toward Sardinian rental properties is markedly positive, with rental yields showing exceptional performance in tourist areas.
Properties in tourist areas can generate net profits 20-30% higher than traditional long-term rentals during peak seasons. Holiday rental properties in Sardinia have the potential to generate turnover of up to €6 billion annually across the island.
Prime rental rates have doubled in 2023 and tripled compared to 2019 values in premium areas like Costa Smeralda. This dramatic increase reflects strong international demand for luxury holiday accommodations.
Investors are particularly attracted to three types of rental opportunities: coastal properties for short-term tourist rentals offering the highest yields, urban apartments for student housing in cities like Cagliari providing steady year-round income, and properties with outdoor spaces commanding premium rents across all categories.
Rural rental yields are remaining steady as countryside living demand matches available supply, with the remote work trend supporting sustained interest in these properties.
What should we watch in Sardinia's property market over the next 3-6 months?
Property prices in Sardinia are expected to rise by 3% to 7% in 2025, supported by continued tourism growth and limited new supply.
| Market Indicator | Expected Trend | Impact on Buyers/Investors |
|---|---|---|
| Property Prices | +3% to +7% increase | Buy sooner rather than later |
| Mortgage Rates | Further ECB cuts expected | Improved affordability ahead |
| International Demand | Continued strength | Competition for prime properties |
| Supply Levels | Remain constrained | Limited negotiating power |
| Rental Yields | Strong in tourist areas | Good investment returns |
| Transaction Volumes | Steady growth expected | Active market conditions |
| Coastal vs Inland | Coastal outperformance | Premium for seaside locations |
Demand is expected to exceed available supply through 2025, which could lead to price consolidation or further increases. The decrease in supply for sale, combined with increasing demand, is likely to maintain Sardinia's attractiveness as both a residential destination and investment opportunity.
Areas dependent on seasonal tourism may experience moderate price corrections if tourism patterns shift or economic uncertainties affect visitor spending. Properties in locations with poor connectivity and infrastructure may continue to underperform relative to well-connected areas.
The Sardinian real estate market appears positioned for continued strength with potential for modest growth rather than dramatic corrections, supported by fundamental supply-demand imbalances and sustained international appeal.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Sardinia's real estate market in June 2025 presents a compelling opportunity for both investors and those seeking a Mediterranean lifestyle, with property prices rising steadily and transaction volumes surging.
The combination of limited supply, strong international demand, and improving financing conditions suggests continued market strength through 2025, making current conditions favorable for buyers who act decisively rather than waiting for potential corrections that may not materialize.
Sources
- Immobiliare.it - Sardinia Real Estate Market Report
- Sardiamo - 2025 Sardinian Property Investment Guide
- Unione Sarda - Real Estate Market Sardinia Soars
- Italy Real Estate Report 2025
- Savills - Italian Luxury Real Estate Market Research
- Investropa - Sardinia Price Forecasts
- Idealista - Seaside Properties in Italy Trends
- Maior Capital - Decreto Salva Casa 2024
- Gate-Away - Italy Property Market Trends 2025
- Trevi Elite - Italian Real Estate Market Recovery