Buying a property in Sardinia: a complete guide

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

Considering buying real estate in Sardinia? You're not alone!

Many people are enchanted by Sardinia's Mediterranean beauty and dream of owning a beachfront villa or a stylish apartment there.

Does it make sense from a financial perspective, though? Are property prices increasing in Sardinia? Is it expensive? Is it more profitable to buy in Cagliari or Alghero? What are the taxes? Where can you get a rental yield above 7%?

We have the answers.

The Investropa team has done their homework and know this market well. Actually, we've compiled all our findings in one pack. Get it now.

In this article, we're happy to share useful information with you.

How's the real estate market in Sardinia?

How is the property market faring? Let's gather and interpret the data to know for sure.

Property types

In Sardinia, you can find a variety of properties for sale.

These include beachfront villas with stunning ocean views, charming countryside cottages surrounded by nature, modern apartments in bustling towns, and rustic farmhouses offering a taste of traditional living.

Whether you're seeking a serene escape or a vibrant urban setting, Sardinia offers diverse options to match your preferences and lifestyle.

Buying vs Renting

(If you're keeping it for yourself and not renting it)

If Sardinia has captured your heart as your destination of choice, you might be considering whether it's better to buy a property or opt for renting in this stunning Italian island.

Usually, buying is better than renting in Sardinia due to the relatively low cost of real estate and the potential for long-term appreciation.

That said, renting provides the advantage of flexibility for those who want it.

Housing prices in Sardinia

On average, according to the last data from National Institute of Statistics (ISTAT), purchasing a property in Sardinia would cost you around $2,550 per square meter.

Obviously, there is a huge spread. The value of a square meter for a coastal property in Sardinia might differ from a house in Cagliari. You'll get a more detailed in our pack for buying property in Sardinia and in Italy.

To give you a sense of scale, it means that, instead of purchasing a flat in Manhattan, you can become the owner of 5 properties in Sardinia.

Also, housing prices in Sardinia are 64% cheaper than in the Balearic Islands.

The most expensive places in Sardinia are probably Porto Cervo, Costa Smeralda, and La Maddalena, while the cheapest places are probably Nuoro and Carbonia.

Trends

First and foremost, we have to acknowledge that Italy remains, today, a very stable country. The last Fragile State Index that has been reported for this place is 43.4.

It is something to have in mind when wondering whether it's a good investment to buy a property in Sardinia.

Also, according to the International Monetary Fund, Italy's economy is expected to soar by 4.8% in the coming 5 years, resulting in an average GDP growth rate of 1% (it's not much).

If you intend to invest in real estate in Sardinia it's a good thing because when the economy grows, people tend to become wealthier, which usually results in higher housing prices.

Also, in Italy, the average GDP per capita has changed by 4.1% over the last 5 years. The growth, although minimal, is still present.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Italy right now.

Buying property in Sardinia

Buying real estate in Sardinia can be difficult due to the lack of reliable and updated information on the market. That's why we have created the pack to buy property in Sardinia and in Italy.

Buying process

In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.

Now, we're giving you a more straightforward version to help you grasp the information more easily.

This is the step-by-step process to purchase a property in Sardinia:

1. Research the local real estate market and familiarize with Sardinian property laws.
2. Find a reputable real estate agent specialized in Sardinia.
3. View properties, considering local factors like landscape and coastline regulations.
4. Hire a notaio (notary) to assist with the legal aspects of the transaction.
5. Obtain the "DIA" (Segnalazione Certificata di Inizio Attività) from the seller, confirming the property's compliance with building regulations.
6. Negotiate the price and terms with the seller, keeping in mind the specific local market conditions.
7. Sign a preliminary sales agreement ("Compromesso") and pay a deposit (Caparra Confirmatoria) to secure the deal.
8. Conduct due diligence with the assistance of your notaio to verify property documents and ensure there are no liens or encumbrances.
9. Obtain the "Attestazione di Prestazione Energetica" (APE), which provides energy efficiency information about the property.
10. Finalize the sale by signing the official sales deed ("Atto di Vendita") before a notaio and pay the remaining balance and taxes.
11. Register the property with the local Land Registry ("Conservatoria dei Registri Immobiliari").
12. Obtain the "Codice Fiscale" (Italian tax identification number) if you don't have one already, as it is required for property ownership in Italy.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Italy.

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Where to find a property

Explore these websites to find properties in Sardinia.

• Immobiliare - Italy's leading real estate portal, offering an innovative platform for property listings and searches.
• Green-Acres - Europe's leading platform for second homes, providing a wide range of properties for sale in Italy and other countries.
• Immobiliare Italiano - Offers a diverse range of Italian real estate and luxury properties for sale, catering to various preferences and budgets.
• Houses of Italy - A licensed real estate agency that offers a variety of properties for sale across different regions of Italy.
• Italian Houses for Sale - A property website featuring a wide selection of properties for sale in various regions of Italy, connecting clients with professional agents.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Italy.

Which properties for which budget?

As mentioned before, the average price per sqm in Sardinia is $2,550. A 1-bedroom property with an area of 60 square meters would cost approximately $153,000, while a 2-bedroom with an area of 85 square meters would cost approximately $217,000.

However, the amount you pay for a property can be different based on its characteristics and where it's found.

The prime locations in Sardinia typically come with elevated housing prices. For about $620,000, you could get a residence in Porto Cervo, but a condominium in Porto Rotondo might be priced at $270,000.

Yet, there are places that won't cost you as much. You could find a property in Olbia for $120,000, or you may locate a property in Sassari priced at only $100,000.

We give a more detailed breakdown in our full pack for buying property in Italy.

Common mistakes

Here are the main pitfalls specific to buying a property in Sardinia, Italy:

• "Comune" restrictions: Different municipalities in Sardinia may have specific zoning rules, limiting property use or development possibilities.
• Historic property regulations: Buying a historic property may come with strict preservation regulations, affecting renovation plans and costs.
• "Catasto" discrepancies: Property boundaries and details in the land registry ("Catasto") may not always be accurate, leading to disputes or surprises.
• "Usucapione" risks: Abandoned or unused land may be subject to "usucapione," where someone can claim ownership through long-term occupation.
• Seaside property caveats: Coastal properties might face stringent laws to protect the shoreline, limiting construction and affecting sea views.
• "Condono" properties: Some properties might have been illegally built and face demolition, causing potential financial losses for buyers.
• Agrarian property constraints: Farmland purchase may come with agricultural restrictions, impacting your plans for the property.
• Tourist rental restrictions: Some areas have strict regulations on short-term rentals, limiting income potential for vacation property buyers.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Italy Property Pack

Living in Sardinia

Life in Sardinia is a beautiful mix of stunning coastal scenery, a relaxed Mediterranean lifestyle, and a friendly, welcoming culture.

Cost of living

The cost of living in Sardinia is generally lower than in other parts of Italy, making it a great place to live for those on a budget. Prices for food and housing are lower than the European average, making it an attractive destination for those looking for a more affordable lifestyle.

Here are some examples to better understand the cost of living in Sardinia:

• Rent for a one-bedroom apartment in the historic "Castello" neighborhood of Cagliari: $1000 per month.
• A meal at a local "Trattoria" with "Culurgiones," traditional Sardinian pasta filled with potato and mint: $15.
• Monthly pass for the "Trenino Verde," a historic narrow-gauge railway that offers scenic rides through the mountains: $70.
• Utilities (electricity, water) for a countryside cottage in the "Gallura" region: $120 per month.
• A bottle of "Mirto," a Sardinian liqueur made from myrtle berries: $20.
• Entrance fee to the ancient "Necropolis of Anghelu Ruju" near Alghero: $5.
• Monthly membership at a "Yacht Club" in Porto Cervo: $200.
• A pack of "Pane Carasau," traditional Sardinian flatbread: $4.

Areas and spots

We like to show information in an easy-to-understand way. So, we made a summary table that lists the different parts of Sardinia. For yields, prices and rents, check our property pack.

Life in Sardinia

Sardinia is an autonomous region of Italy with a strong economy that is largely reliant on tourism, agriculture, and fishing. The region has a high level of economic growth and development, with a GDP per capita that is among the highest in the country.

What expats usually like the most in Sardinia is its stunning coastline and white-sand beaches, as well as its rich culture and vibrant nightlife.

Access to healthcare in Sardinia is generally good, with a wide range of public and private healthcare facilities available.

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Renting out in Sardinia

If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.

Long-term

According to the data reported by Wikipedia, the home ownership rate in Italy is 74%, which is average.

When people buy in Sardinia it's usually to live there, and not to rent out.

If you decide to rent out long-term, you might want to target people looking for a relaxed lifestyle and a chance to explore the natural beauty of Sardinia, such as retirees, digital nomads, and people looking for a second home.

Here is a little summary table we've made for you.

Now, you will probably ask us about the yields. Unlike for other places, it would be difficult to give you the average rental yields in Sardinia due to insufficient long-term rental properties available for analysis. Also, it's quite diverse. For example, rental yields in Cagliari and Olbia are quite different from those in less popular spots.

Finally, know that, in Italy, the taxes are around 21% of the total rental income.

Short-term

You could also decide to rent short-term to holidaymakers looking to explore the beautiful beaches, coves and bays of the Sardinian coastline. Additionally, those wanting to experience the traditional culture and cuisine of the region could be potential tenants.

If you decide to go with that option, look for properties in the Costa Smeralda area or in La Maddalena Archipelago. These areas offer a great rental potential due to their stunning beauty and the presence of many tourists.

Is it worth buying real estate in Sardinia then?

Buying a property in Sardinia can be a fantastic idea if you're looking for a beautiful Mediterranean escape with a lower cost of living. It's particularly appealing for long-term residents, retirees on a budget, or those who dream of a vacation home in a stunning coastal setting.

With relatively affordable property prices compared to other Italian regions, Sardinia offers a chance for long-term appreciation, making it an attractive investment. The island's diverse property types, from beachfront villas to countryside cottages, cater to various lifestyles and preferences.

On the flip side, if you're planning short-term stays, frequent travel, or high rental yields, Sardinia might not be your best bet. Property ownership entails ongoing costs, and rental income can vary significantly depending on the location and property type.

Moreover, risk-averse buyers should be cautious, as Sardinia's real estate market comes with specific challenges and potential pitfalls, such as zoning regulations, historic property preservation rules, and language barriers in some areas.

Ultimately, whether buying property in Sardinia is worth it boils down to your specific goals, risk tolerance, and desire for an authentic Mediterranean experience.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.