Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Sardinia's property market is included in our pack
What will happen in Sardinia’s real estate market? Will prices go up or down? Is Cagliari still a hotspot for foreign investors? How is Italy’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local agents, property developers, and clients who buy homes in Sardinia, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Interest from British buyers in Sardinia will drop because of post-Brexit economic uncertainties
Sardinia might see fewer British buyers because of post-Brexit economic uncertainties.
The British pound has weakened against the euro, making Sardinian properties pricier for UK buyers. Even though the exchange rate has slightly improved from 2024 to 2025, it's still not back to pre-Brexit levels. This means that buying a home in Sardinia is more expensive than it used to be.
Buying property abroad has become more complicated and costly for UK citizens. New regulations have added red tape and extra costs, especially for those eyeing holiday homes. This is a big turn-off, and it's not just about buying homes. British tourism in the EU has also taken a hit, with many travelers either canceling or delaying their trips due to Brexit worries.
Economic reports show that the UK is facing some tough times post-Brexit. High inflation and slow growth are making it harder for Brits to spend money on overseas properties. With less disposable income, investing in a Sardinian getaway seems less doable.
Overall, the economic uncertainty and possible regulatory changes are making things worse. Potential higher costs for buyers are another reason why investing in Sardinia might not be appealing right now.
Sources: YCharts, Statista, ICAEW
2) Property demand and prices in Alghero will rise as tourism increases
Alghero is experiencing a tourism boom, especially during the summer months.
In 2023, the town welcomed 212,266 tourists, a clear sign of its growing appeal. This influx naturally boosts the demand for accommodations and services, making it a hotspot for potential property buyers.
Local hotels and vacation rentals are seeing higher occupancy rates, with room occupancy climbing to 79.15% in 2024, up from 77.74% the previous year. This steady rise indicates that more visitors are choosing to stay longer, which in turn drives up property demand as investors eye the thriving tourism sector.
Transportation improvements are also playing a crucial role. The collaboration between Sogeaal and Geasar airports has made Alghero more accessible, encouraging even more tourists to visit. This ease of access is likely to further increase the demand for real estate, as both short-term rentals and long-term investments become more appealing.
With the tourism sector booming, property investors are keen to capitalize on the opportunity. The increased tourist numbers and improved infrastructure make Alghero an attractive option for those looking to invest in real estate.
As more people discover Alghero's charm, the real estate market is poised to benefit from rising property demand and prices, driven by the influx of tourists and the town's growing popularity.
Sources: Agenzia Nova, Ajo Casa, Agenzia Nova
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Demand for homes with terraces and gardens in Sardinia will grow as outdoor living becomes more valued
In Sardinia, property sales have surged, especially for homes with outdoor spaces.
Seaside locations are particularly hot, with places like Castiadas seeing a whopping 264.5% increase in sales. This shows a clear trend: people want homes where they can enjoy the outdoors.
Homeowners are putting more money into making their outdoor areas cozy and stylish. Interior designers note that patios and porches are becoming luxurious retreats, which means terraces and gardens are in high demand.
Sardinia's Mediterranean climate, with its mild winters and warm summers, is perfect for outdoor living. This weather, along with efforts to create more green spaces, makes properties with outdoor areas even more appealing.
Real estate agents in Sardinia are noticing that buyers are increasingly drawn to homes with these outdoor features. The trend is clear: outdoor living is becoming a priority for many.
Sources: Idealista, Veranda, InSardinia
4) Property prices in Sardinia will keep rising because demand is growing faster than supply
Residential property prices in Sardinia are on the rise, driven by limited supply and growing demand.
In November 2024, the average price for homes in Sardinia hit €2,360 per square meter, up 3.15% from December 2023. This increase is especially noticeable in coastal hotspots like Olbia and Alghero, where sales are booming.
International buyers are a big part of this trend. They're snapping up luxury villas and historic estates, drawn by Sardinia's stunning landscapes and laid-back lifestyle. These premium properties are in high demand, pushing prices even higher.
On the flip side, Sardinia's supply of new properties is tight. The island's focus on sustainable tourism and conservation means there's not much land available for new builds, especially near the coast. This scarcity is a key reason why prices keep climbing.
Geographical and regulatory factors also play a role. Sardinia's commitment to preserving its natural beauty limits development, creating a perfect storm for rising property values.
With demand outpacing supply, it's clear that property prices in Sardinia will continue to rise, making it a hot spot for savvy investors.
Sources: Immobiliare.it, Cushman & Wakefield
5) Luxury real estate investments in Northern Sardinia, especially near Olbia, will increase as wealthy international buyers show interest
Northern Sardinia, especially around Olbia, is turning into a prime spot for luxury real estate investments.
In 2023, the area saw a remarkable rise in property values, with prime residential prices in Costa Smeralda jumping by 18%. This was the second highest increase in Italy, driven by a mix of limited supply and high demand from international buyers. The allure of the region is undeniable, with its stunning coastline and exclusive lifestyle.
By 2024, the trend continued in Porto Cervo, a key area in Costa Smeralda, where property prices kept climbing. This ongoing demand is fueled by new luxury developments around Olbia. Real estate agencies like Brilas and Brili Servizi Immobiliari are at the forefront, offering exclusive services to cater to both buyers and sellers looking for high-end properties.
The region's charm is further amplified by the growing interest from international real estate agencies and a steady stream of affluent tourists. In 2023, a significant 80% of buyers were from international backgrounds, highlighting the strong appeal to wealthy global investors. This international interest is not just a passing trend; it's a testament to the area's unique offerings.
Adding to the attraction, 2024 saw improved air connectivity, with direct flights to Olbia from major international cities. This makes it even easier for high-net-worth individuals to explore investment opportunities in the region. The convenience of travel has undoubtedly played a role in boosting the area's real estate market.
With its breathtaking landscapes and luxurious lifestyle, Northern Sardinia is poised to remain a top choice for those seeking exclusive real estate investments. The combination of natural beauty, strategic location, and upscale amenities continues to draw in discerning buyers from around the world.
Sources: Savills, Brilas, Brili Servizi Immobiliari, Who's Who in Luxury Real Estate Members Look Toward 2025, Real estate market in Sardinia - Trevi Elite
Get to know the market before you buy a property in Sardinia
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Foreign investment in Sardinia will grow as non-EU countries look for stable real estate opportunities
Sardinia is catching the eye of non-EU investors looking for stable real estate opportunities.
In recent times, there's been a buzz among non-EU investors, especially from Eastern Europe, about buying property in Sardinia. Places like Sant'Antioco and Calasetta are hot spots for holiday homes, with a noticeable interest from countries like Poland. This trend hints at a promising future for investments in the region.
Despite the challenges of 2023, such as high mortgage rates, southern Sardinia's real estate market has shown resilience. With inflation slowing and potential interest rate cuts on the horizon for 2024, the market is poised for recovery, which could lead to rising property prices. This makes Sardinia a tempting choice for those seeking stable and appreciating assets.
Italy sweetens the deal with tax credits and incentives for new capital investments. For instance, the Southern Italy Special Economic Zone (SEZ) offers tax credits that vary based on company size and investment location. These perks make Sardinia even more attractive to foreign investors.
Sardinia's charm as a tourist hotspot continues to draw both local and international buyers. The island's allure as a luxury and vacation destination keeps interest alive, especially in prime coastal areas. This growing tourism interest can lead to a surge in demand for vacation homes, further boosting the real estate market.
With geopolitical instability elsewhere, investors are looking for safe havens in stable European markets like Italy. Sardinia, being part of Italy, stands to gain as investors seek secure places for their capital.
Sources: PWC Tax Summaries, Agenzia Nova, Ajo Casa
7) Stricter environmental rules in Sardinia will affect new property development
Sardinia is grappling with serious environmental challenges that demand stricter regulations.
One major issue is the increased likelihood of droughts by 50% due to climate change, leading to water shortages and hitting agriculture hard. This isn't just talk; studies like the World Weather Attribution (WWA) study back it up. Imagine trying to grow crops with less and less water each year—it's a real struggle for local farmers.
Coastal erosion is another big worry. Over the past few decades, more than 107 km of coastline has vanished. The North-West coast is especially at risk, with sea levels expected to rise by 0.31 meters by the century's end. This will only speed up the erosion, making it a race against time to protect these beautiful shores. Government bodies like ISPRA and GNRAC have been keeping tabs on this, noting significant erosion along 165 km of the coast.
People are getting more vocal about these issues, especially after local authorities declared a state of emergency due to droughts and wildfires. The media has been all over it, showing how climate change is wreaking havoc on Sardinia's farmland and forests. Local advocacy groups are stepping up, pushing for tougher environmental protections, which aligns with the regional government's plans to preserve the landscape.
For anyone considering buying property here, it's crucial to know that stricter environmental regulations are on the horizon. These changes aim to protect Sardinia's natural beauty but could impact new property developments. So, if you're eyeing a piece of paradise, keep an ear to the ground for these upcoming regulations.
Sources: Earth.org, Sardegna Ambiente, Advant NCTM
8) Long-term rental yields in Sardinia will drop as more properties become holiday rentals
Sardinia is seeing a boom in holiday rentals as more property owners convert their homes to meet tourist demand.
Tourists are flocking to Sardinia, especially to hotspots like Santa Teresa di Gallura and Costa Smeralda, driving up the need for short-term stays. Foreign visitors spent over 810 million euros on accommodations last year, and this number is expected to nearly double. This surge in tourism makes holiday rentals a more attractive option for property owners.
During the bustling summer months, holiday rentals can be far more profitable than long-term leases. Property owners are noticing this trend and are eager to tap into the lucrative market of short-term rentals. The shift is evident as more properties are being transformed to cater to tourists.
Local media and anecdotal stories highlight this growing trend, showing how property owners are adapting to the changing market. Many are choosing to convert their long-term rentals into holiday accommodations to maximize their earnings.
As more properties become holiday rentals, the yield on long-term rental properties is expected to decline. This shift is reshaping the rental landscape in Sardinia, with long-term rentals becoming less common.
For those considering buying property in Sardinia, it's crucial to understand this dynamic. Investing in a property for holiday rental could be more profitable given the current trends and tourist influx.
Sources: Idealista, Agenzia Nova, Cleanbnb
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Property prices on Sardinia's southern coast will fall due to climate change worries about rising sea levels
Sea levels are rising, and it's something to keep an eye on if you're considering buying property in coastal areas.
In the past year alone, we've seen a noticeable increase, largely due to climate change and events like El Niño. This isn't just a global issue; it's hitting close to home, especially in places like the southern coast of Sardinia. Experts predict significant sea level rise in the Mediterranean by the end of the century, which could impact property values.
When it comes to real estate, coastal properties are feeling the heat. Historically, areas prone to climate change effects, like flooding or erosion, see a dip in property values. Buyers are understandably cautious about investing in places where the risks are rising.
In Sardinia, this trend is particularly concerning. The southern coast, known for its stunning views and serene beaches, might not be as appealing if the sea keeps encroaching. Potential buyers are becoming wary, and this could lead to a decrease in demand.
For those eyeing a slice of paradise by the sea, it's crucial to weigh the risks. Climate change is reshaping the real estate landscape, and what seems like a dream location today might face challenges tomorrow.
So, if you're thinking about investing in coastal property, especially in areas like Sardinia, it's wise to stay informed. Understanding the long-term implications of rising sea levels can help you make a more informed decision.
Sources: NASA, INGV, Insurance Journal
10) Property values in Cagliari will rise significantly as it becomes a tech startup and innovation hub
Cagliari is quickly becoming a hotspot for tech startups and innovation.
The "Cagliari Digital Lab" is a game-changer, backed by the Ministry of Business and Made in Italy, and it's pouring resources into 5G, AI, Blockchain, and IoT technologies. This kind of tech investment is like a magnet, pulling in startups and setting the stage for a tech-driven future.
On top of that, the city's startup scene is buzzing with life. The "Bravo Innovation Hub" is a key player, pushing forward smart city and green mobility projects. They've already picked ten startups to focus on mobility, logistics, and urban planning, creating a lively environment that draws in more businesses and professionals.
The government is also throwing its weight behind digital innovation with hefty investments. This support is encouraging tech companies to set up shop in Cagliari, which means more job opportunities and a boost to the local economy. Skilled professionals are flocking to the city, and that's having a positive impact on the property market.
As Cagliari transforms into a tech hub, property values are expected to rise. The influx of tech companies and professionals is creating demand, making it a promising time to invest in real estate here. The city's tech-driven growth is reshaping its future, and the property market is set to benefit.
With all these developments, Cagliari is not just a beautiful place to live but also a smart investment choice. The tech scene is vibrant, and the city's commitment to innovation is clear. Investing in property here could be a savvy move as the city continues to evolve.
Sources: Abinsula, Nucamp, Startup Italia
11) Property prices in central Sardinia will stay stable as it becomes a cultural and historical tourism hotspot
The central region of Sardinia is becoming a cultural and historical tourism hotspot, drawing more visitors each year.
In 2023 and 2024, Sardinia's heartland, especially the Ogliastra region, has seen a surge in tourists eager to explore its rich heritage and stunning landscapes. This influx is largely driven by a growing interest in cultural and historical tourism, making the area a magnet for those seeking authentic experiences.
The Sardinian government has been instrumental in this transformation. By investing in the preservation of cultural heritage, they've not only boosted the region's charm but also improved infrastructure. These enhancements make it easier for tourists to access and enjoy the cultural sites, adding to the region's allure.
Adding to the excitement, new cultural festivals and events have sprung up, creating a lively atmosphere that draws even more visitors. These events, along with positive media coverage, have positioned central Sardinia as a must-visit destination for culture enthusiasts.
For potential property buyers, this means stable property prices in the central region. The area's growing reputation as a cultural hub ensures a steady stream of tourists, which supports local businesses and maintains property values.
Investing in property here could be a wise move, as the region's appeal continues to grow. With the government's ongoing efforts to promote tourism and preserve cultural sites, the central region of Sardinia is set to remain a vibrant and attractive destination.
Sources: Agenzia Nova, Interreg Europe, EATSA Researches
Buying real estate in Sardinia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Property prices in Sardinia will drop slightly in areas with poor connectivity and infrastructure
Sardinia is experiencing a demographic decline, especially in its rural areas.
In places like Sassari, Alghero, and Sorso, population numbers have noticeably dropped, which is affecting the local property market. With fewer people around, the demand for homes in these areas is shrinking, leading to a dip in property prices.
One major reason for this trend is the lack of good infrastructure. As economic opportunities dry up, fewer buyers are interested in these regions. This is particularly true in municipalities where the number of interested buyers has fallen sharply.
Rural depopulation in Italy, including Sardinia, is largely due to poor connectivity and infrastructure. People are drawn to urban areas where life is more convenient, leaving rural properties less attractive and cheaper.
As a result, property values in poorly connected areas are lower, making urban living more appealing. This shift is evident as more people choose city life over rural settings.
Sources: Unione Sarda, Vaia
13) Rental yields in Sardinia's cities will increase as more young professionals seek urban living
Sardinia is becoming a hotspot for young professionals looking to move to urban areas.
The government is making it easier for people to relocate by offering relocation grants, which are part of a broader plan to breathe new life into city centers. These efforts are not just about filling up empty apartments; they aim to make urban living more attractive to younger people.
As a result, there's a noticeable uptick in the demand for rental properties. Young professionals are increasingly eyeing city life, which means rental housing demand is on the rise. This surge is good news for landlords, who can expect to see rental yields climb as they adjust rents to match the growing interest.
City life is becoming more appealing, especially with the convenience of amenities and better connectivity. Young professionals are drawn to the vibrant lifestyle cities offer, and the trend is gaining momentum. The rise of remote work is also playing a role, giving people the freedom to choose city living without being tied to a specific office location.
With more people able to work from anywhere, the allure of urban areas is stronger than ever. This shift is not just a passing phase; it's a significant change in lifestyle preferences. As more young professionals opt for city life, urban rental markets are poised for growth.
Expect to see a continued rise in rental yields in Sardinia's urban areas as the demand for city living among young professionals grows. Landlords are in a prime position to benefit from this trend, making it an exciting time for property investors.
Sources: Euronews, Unlocking Real Estate Value, Washington Examiner
14) Property prices in Sardinia will drop moderately in areas dependent on seasonal tourism
Sardinia's property market is facing changes due to shifts in tourism dynamics.
In 2023, Sardinia saw a record number of passengers during the summer, but this was mostly a rebound from the pandemic. The buzz might not last, as other Mediterranean spots like Greece and Croatia are pulling in more tourists. This shift could mean fewer people looking to rent in Sardinia, which might nudge property prices down.
Travel costs are another factor. If fuel prices climb again, it could make Sardinia less appealing for tourists. Rising travel expenses might discourage visitors, impacting the demand for seasonal rentals.
Local reports hint at a slowdown in seasonal tourism revenue. Foreign tourists are spending less, partly due to economic uncertainties. This economic climate, along with stories of tourists wanting quieter spots, suggests a dip in property demand in busy tourist areas.
For those eyeing property in Sardinia, it's worth noting these trends. The island's charm remains, but the tourism-driven property market might see some shifts. If you're considering buying, keep an eye on how these factors play out.
Sources: Agenzia Nova, InSardinia, Agenzia Nova
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Rural rental yields in Sardinia will stay steady as countryside living demand matches supply
Sardinia's property market has been buzzing with activity, especially along its stunning coastlines.
From 2019 to 2023, the island saw a 64.5% surge in property sales, not just by the sea but also in its charming rural areas. This growing interest in countryside living is reshaping the market dynamics.
Rental prices in Sardinia have been on the rise, with an 8.89% increase in average residential rental prices from December 2023 to November 2024, now at €13.35 per square meter monthly. This suggests a healthy balance between what people want and what's available.
Real estate agents are noticing a steady demand for rural properties, which is no surprise given the increasing allure of countryside living. People are drawn to the peace and space that these areas offer.
The shift to remote work has played a big role in this trend. More folks are choosing to live in rural settings, which keeps the demand for countryside rentals stable. Remote work is reshaping living preferences, making rural Sardinia a hot spot.
With these trends, it's clear that rural rental yields in Sardinia are holding steady, as the desire for countryside living balances nicely with the available properties.
Sources: Immobiliare.it, Idealista, Ajo Casa
16) Rental yields in Sardinia will rise as short-term vacation rentals gain popularity with tourists
Sardinia is seeing a boom in tourism, especially in 2023 and 2024.
With more tourists arriving, the demand for places to stay has skyrocketed. This is clear from the packed ports and airports during the busy months. People are looking for short-term vacation rentals, and platforms like Airbnb and Vrbo are thriving here.
These platforms are buzzing with activity, showing a rise in both listings and bookings. For instance, a villa in Baja Sardinia is getting rave reviews, highlighting the strong demand. More tourists are choosing these rentals over hotels, and occupancy rates for short-term rentals are now higher than those for traditional accommodations.
Financially, short-term rentals in Sardinia are doing great. Even with lower average daily rates, revenue has shot up during the summer. This shows how profitable these rentals are, making them attractive to property owners and investors.
For those considering buying property in Sardinia, this trend is promising. The island's popularity among tourists is not just a passing phase. Short-term vacation rentals are becoming a preferred choice, and this is likely to continue.
Investing in a property here could mean tapping into a growing market. With the right property, the potential for rental income is significant. Sardinia's charm and the increasing tourist numbers make it a hotspot for short-term rentals.
Sources: Agenzia Nova, Airbnb, Beyond Pricing
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.