Making a real estate investment in Sicily in 2022 can be a great deal, as long as you know how to do it. I’ll explain why it is convenient, but also what to pay attention to to maximize your investment and make sure it is really profitable.
2023: Real estate market in Sicily
To talk about the Sicilian real estate market in 2022, the analysis cannot ignore the events of recent years.
The pandemic has greatly changed the scenario: the damage in 2020 was enormous, but in 2021 We have seen a huge recovery in the market, thanks to the change in the housing style of Italians.
Paradoxically, the devaluation of real estate was important, leading to a fall of even a third of the value of properties in the Palermo area. Data that tell of a market that is really struggling to recover with an average decrease of 3.7% in real estate value compared to 2020.
With these premises it would seem clear that the answer to the initial question “is it worthwhile to make a real estate investment in Sicily?” is a No, but the reality is quite different.
To take advantage of real estate investment opportunities, it is necessary to go to the bottom.
Real estate appraisals reward listings of properties located in the historic center of cities or in coastal areas of particular value. Sicily’s key to success seems to be, once again, focused on tourism.
If we add to this analysis the bonuses provided to Italy for the construction and renovation of properties with 110% of costs guaranteed by the Italian state, then it is quite clear that this is the best time to invest in the Sicilian real estate market. This kind of bonuses allow properties to improve with important changes and enhancements, such as thermal insulation interventions, replacement of winter air conditioning systems and reduction of seismic risk.
The Sicilian real estate market and growing tourism
If the pandemic has slowed down the real estate market throughout Italy, it has also had the opposite effect of encouraging the purchase of holiday homes.
Apartments and B&Bs have been preferred to tourist villages and hotels and this trend seems to be steadily increasing even in the summer of 2023.
There are many popular places in Sicily, with a mix between sea and city tradition, many cities of eastern Sicily have had significant increases with tourist resorts that have seen a real boom – also thanks to careful marketing operations.
The major cities as Noto, Ortigia, Taormina, Scopello and Castellammare del Golfo have seen a significant increase in tourism coming from Italy and abroad.
What type of property to choose? Holiday homes, short term rentals
The identikit of the ideal home in Sicily exists.
Spacious apartments surrounded by greenery, villas with gardens and swimming pools or historic houses in the city center: the choice depends on your expectations.
In this sense, it is essential to think first of all about the destination you want to give to the investment. When it comes to tourism, there are essentially three most common possibilities:
- Short-term rental apartments
- Holiday House
Not making these arguments at the beginning means finding yourself having purchased a property that may not meet your needs and what the market is looking for.
For a holiday home, for example, I recommend that you evaluate the purchase of a large property, with outdoor spaces and in an exclusive location, while for a short rental you can focus on a smaller apartment, but it will be important that it is located in strategic position for the historic center or the sea.
The type of structure is also of particular importance.
On the Sicilian real estate market you can find properties of different caliber, but the difference between a historic building in Sicilian Baroque style and an apartment to be restored lies not only in the cost.
When it comes to tourist rentals, it is a question of focusing the offer on a certain type of clientele rather than another.
