While most of Europe’s property prices have soared beyond reach, there’s one stunning corner where homes remain surprisingly affordable. Today you will discover a secret about buying cheap property in Italy.
I saw that with my own eyes, and many of my viewers don’t believe me when I say you can still buy a beautiful Italian home for the price of a luxury car.
In this article, I’ll reveal why Southern Italy has become Europe’s last affordable real estate haven, with renovated homes available for just €50,000-70,000 total investment.
You’ll discover why these prices have stayed at 2005 levels while other European countries have seen property values triple, and how long this opportunity might last.
And we start by answering a VERY important question:
WHAT Kept Italian Home Prices under check
(and THIS might be a sign for your country too)
While most of Europe has experienced a dramatic surge in property values over the last two decades, Italy remains a fascinating anomaly in the real estate market.
Italian homes today are selling for roughly the same prices as they did back in 2005. This stagnation isn’t just unusual—it’s unique among major Eurozone economies.
While neighboring countries have seen their real estate markets flourish, Italy’s has remained frozen in time, even declining in some areas when adjusted for inflation.
The Italian property market hasn’t just underperformed; it has actually delivered the worst returns of any significant Eurozone nation since the early 2000s.
But what’s behind this economic oddity?
The answer lies in a perfect storm.
At the heart of Italy’s real estate situation is a stagnant economy coupled with a shrinking population—a combination that’s poison for property values.
Most European countries have low birth rates, but in Italy, the situation is much, much worse. Italy has one of the lowest birth rates in Europe, comparable to countries like Poland, Lithuania, Estonia, and Spain.
Then you add that the Italian economy has not been growing as much as the economies of Poland, Lithuania, or Estonia – which skyrocketed in the last few decades.
In fact, Italy is worse than Spain or Greece in terms of economic growth since the year 2000 – it is the worst country in Europe
So if the housing prices are already attractive in Spain and Greece (and I made articles about each of them – check them later), Imagine in Italy!
Italy had such low economic growth while its demographic pyramid looks like that – it is an aging population, with decreasing numbers
Fewer people mean reduced housing demand and reduced demand means lower prices. The mathematics of population decline together with the economic stagnation directly impacts the housing market.
As young Italians move abroad for better economic opportunities and birth rates remain among the lowest in Europe, the number of potential homebuyers continues to shrink. This demographic shift has effectively put a ceiling on real estate prices throughout the country.
The contrast with neighboring Mediterranean countries is striking.
Take Spain, for instance, where property values have doubled or even tripled since 2005 despite also having low birth rates. Portugal, once considered Europe’s affordable hidden gem, has seen explosive growth in its real estate market, particularly in cities like Lisbon and Porto.
Even in parts of France, prices have climbed steadily, pushing many buyers to look elsewhere for affordable options.
What makes Italy’s situation even more remarkable is that we’re talking about a country with world-class cities, amazing weather, and one of the highest life expectancies on the planet.
Logic would suggest that such desirable locations should command premium prices regardless of broader economic trends.
Yet even in some of the most beautiful parts of the country, property values have barely budged in almost two decades. In real terms, accounting for inflation, many areas have actually become cheaper over time—a phenomenon virtually unheard of in desirable parts of Western Europe.
The population decline story, however, is only part of what makes Italy’s real estate market so unusual. If we dig a little deeper, you’ll discover another factor that’s perhaps even more significant in creating these affordable home prices:
Italy’s dramatic north-south divide.
When Italians speak of “Il Mezzogiorno,” they’re referring to their country’s southern regions—areas where the economic and daily reality differs dramatically from the prosperous north. And the curious thing is: If you ask a Northern Italian about the South, he might tell you that Southern Italy is “another Italy”. Is that true? Maybe yes.
Others say that northern Italians look down on southern Italians – and that might be an exaggeration.
This is what an Italian told us about these “Southern-Northern rivalries”.
“Keep in mind Italy is a young nation with a long history of internal divisions, smaller but fiercely independent states, foreign domination political strife, and plenty of local rivalries still felt to this day. If people from Pisa and Livorno still don’t particularly like each other despite being 17 miles away and having a similar historical and cultural background, you can easily see why a Sicilian and a Venetian don’t really feel close.”
A southern Italian told us that:
“We are poorer, we have emptier pockets but bigger hearts”
But the differences here go beyond lifestyle, culture, and habits – things that we will cover in a few paragraphs – because the most striking are the differences in housing prices!
This isn’t just a small price variation; we’re talking about a financial canyon so vast that identical properties can cost three to five times more in northern regions than in the south.
Let me put this in perspective. A €400,000 apartment in Milan—which is far from luxury housing there—could instead buy you a spacious villa with extensive land in Calabria or Sicily.
In Calabria, €60,000 gets you a home; in Milan, it gets you a parking spot or maybe a middle finger from a landlord.
This isn’t just a minor cost difference; it’s an entirely different lifestyle proposition.
Why does this massive price gap exist? For starters, investment in Italy has historically concentrated in the north, creating a self-reinforcing cycle. Northern regions like Lombardy and Veneto enjoy well-developed infrastructure—fast trains, multiple airports, and extensive highway networks—while southern areas have been left behind with fewer services and less development.
The economic foundation tells the same story. Northern Italy functions as an industrial powerhouse, with cities like Milan, Turin, and Bologna driving economic growth. Meanwhile, the South relies more heavily on agriculture and struggles with significantly higher unemployment rates. These fundamental differences in economic activity directly impact property values.
The contrast becomes even more striking when you look at specific examples.
In Sicily, you can purchase a house in a town or village for around €75,000.
Such kind of property, if located in central Palermo, might command €250,000—and in Milan, the price would be much higher.
Location within Italy matters more than almost anywhere else in Europe.
Population trends reinforce these disparities. While northern cities continue to grow, southern towns experience ongoing depopulation, creating an abundance of available properties with few local buyers. This migration pattern has left countless homes vacant and prices suppressed in the south.
But there’s good news hidden in this Italian divide.
The regions offering the most extraordinary value for property buyers right now are Calabria, Molise, Sicily, Umbria, and Puglia.
These places represent perhaps the last truly affordable corners of Western Europe where outsiders can still purchase quality homes at prices that seem impossible elsewhere on the continent.
Recent infrastructure improvements are slowly changing the equation. Transportation upgrades and better internet connectivity are making these southern regions increasingly attractive to expats who can bring their work or retirement funds from higher-cost countries.
While locals might prefer the economic opportunities of the north, foreigners often find the combination of affordability, climate, and authentic Italian culture irresistible.
Now, I could skip an important disclaimer about the…
Real Cost of Italian Dream Homes – A big difference between purchase price and total investment.
You’ve likely seen videos about Italy’s €1 home and thought it was too good to be true. You’re right – they require massive renovations and come with strict conditions – I talked about some traps of the €1 home in another article.
But there’s a much better opportunity almost nobody is talking about.
Regular Italian properties in certain regions are selling for €30,000-40,000 – prices that disappeared from most Western European countries 15 years ago. Now I will show you what these properties actually look like, and help you determine if this opportunity aligns with your retirement goals.
The example below is a property with a sea view in Calabria – and it is in a ready-to-move in condition.
But Let me be clear: often properties in this price range aren’t move-in ready by modern standards.
When you purchase a €30,000-40,000 home in Southern Italy, you’re essentially buying a shell that requires some work. Of course they are in much better condition than the so-advertised €1 home, but charming centuries-old home comes with centuries-old problems that your bank account will need to address. Many lack basic modern plumbing, or have questionable electrical systems.
The renovation costs can quickly eclipse your initial investment. In Italy, construction and renovation work is typically calculated by square meter, with costs starting at around €1,000 per square meter for basic structural work. If you want standard finishes, you’re looking at about €2,000 per square meter, while luxury renovations can run €3,000 or more per square meter. These numbers add up fast when you’re renovating an entire home.
Real-life examples tell the story better than estimates.
One expat shared their experience of purchasing a property for €40,000 that required an additional €30,000 in remodeling costs, bringing their total investment to €70,000.
This pattern repeats across the southern regions. Take Meredith Tabbone, who scored what seemed like an incredible deal – a home for just €5,555. However, the property needed extensive renovations including installation of windows, running water, and electricity. Her renovation budget? A substantial €35,000 – more than six times the purchase price.
Even properties in better condition need work. Another buyer found a home for €9,000 that still required significant modernization. The initial price tag often represents only 30-50% of what you’ll ultimately invest.
Navigating the renovation process introduces another challenge that foreign buyers rarely anticipate: the “geometra” system. This uniquely Italian profession combines elements of surveyor, building engineer, and permit facilitator.
Working with both a geometra and a local architect is essential for foreigners who want to successfully manage renovation projects and ensure compliance with local building codes. These professionals help navigate the byzantine Italian bureaucracy that governs property renovations.
Now you might be wondering…
With all these additional costs, is buying in Southern Italy still worth it?
The surprising answer is yes.
Even after renovation expenses, the total investment for a comfortable Italian home (typically €50,000-70,000 all-in) remains remarkably affordable compared to similar properties elsewhere in Western Europe.
Comparable renovated homes in France, Spain, or Portugal would command significantly higher prices, often two to three times as much.
By the way, if you’re reading this article, you’re probably planning to travel abroad for a longer time, and you want to save money and pay fewer taxes. I’ve written three top-rated Amazon books on living abroad, based on my experiences and insights from hundreds who’ve done the same – You can purchase them through this link.
Now, let’s talk about the real lifestyle you’re signing up for in these budget-friendly Italian villages.
The OTHER Cons of Buying Cheap Property in Italy
That picture-perfect stone cottage with panoramic hillside views might cost a fraction of what you’d pay elsewhere in Europe, but daily life here comes with its own unique set of challenges.
These affordable regions are typically small, rural communities where the average age skews significantly older. Many villages have experienced a youth exodus over decades, with younger generations departing for better job prospects in bigger cities.
One expat reality-check puts it bluntly:
“You’re not going to be walking to the local cafe for coffee or a glass of wine. The cafe closed a decade ago and is boarded up.”
Healthcare access represents one of the most significant practical concerns. Many rural areas lack nearby hospitals, forcing residents to travel considerable distances for medical treatment. This becomes especially important for retirees who may require more frequent healthcare visits.
Transportation isn’t just a convenience here—it’s an absolute necessity.
Public transit in these regions is often limited or non-existent, making car ownership practically mandatory. Expats commonly report needing to drive 15-20 kilometers just to reach basic amenities like grocery stores. For those accustomed to walkable neighborhoods with services at their fingertips, this adjustment can be jarring.
Internet connectivity presents another potential hurdle. While some villages boast surprisingly solid connections, others struggle with reliability issues that might complicate remote work arrangements or staying connected with family abroad.
The UNEXPECTED Pros of Buying Cheap Property in Italy
Before you close this article thinking I’ve painted too grim a picture, let me balance the scales. Southern Italy offers remarkable compensation for these inconveniences.
The Mediterranean climate brings abundant sunshine year-round, which not only lifts spirits but can alleviate health conditions like arthritis. The regional diet—rich in fresh produce, olive oil, and seafood—contributes to Italy’s famous longevity statistics.
The slower pace fosters deeper community connections once you integrate. While language barriers exist, the warmth of neighbors who genuinely look out for one another creates a sense of security that’s increasingly rare in modern life.
And, another positive thing about Southern Italy that is extremely attractive is the much lower taxes if you live in a city with less than 20.000 residents – I made an entire article explaining how that works in both Italy and Greece, and it is really cool.
So, for many expats who’ve made the leap, the trade-offs ultimately prove worthwhile. The dramatically lower cost of living stretches retirement savings further.
The absence of urban stressors—traffic, noise, crime—creates space for a more contemplative existence. In choosing these affordable Italian havens, you’re not just buying a home; you’re investing in a fundamentally different relationship with time, health, and community.
So if you think that all these pros of Southern Italy are worth checking, take a look at this article with the best cities to retire in Italy, including regions like Sicily, Calabria, and Apulia.
Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can find him on X here. Some of the links above might be affiliated links, meaning the author earns a small commission if you make a purchase.
