Houses for Sale For 1 Euro in Italy: A Boom in Applications and New Alternative Solutions Studied

After several Italian municipalities launched the initiative of selling houses for 1 euro (https://dandrea.flow-project.com/new-business-opportunity-real-estate-selling-at-only-1-euro-in-italy/), in order to avoid depopulation in rural areas and to promote requalification of territories, a strong interest globally has been registered in this project. Applications thus far have been far in excess of the available real estate which has led already participating municipalities to open up new calls as well as new municipalities to join in.

For example, Biccari (a village in the Apulia Region, selling 15 houses) received more than 7,000 requests; even more, Oyace, in the Aosta Valley Region, with only around 50 inhabitants, received more than 50 requests in only a few days. We could outline many other similar examples, considering that more than 60 villages have joined the project (it is however difficult to make a comprehensive list, considering the high speed of the opening and closing of applications).

Citizens and investors alike are attempting to understand how this project can be realized and sustainable. The process is actually quite simple, houses are handed over to the townhalls by individuals, generally inheritors, that do not want to pay real estate taxes and the townhalls then auction these houses for 1 euro. The concept which drives municipalities to join the project lies in the will of promoting real estate heritage (generally, the acquiror is obliged to renovate the house) and of avoiding the abandonment of small villages in favor of big cities.

Considering the important and satisfying results, as well as the simplicity of the selling process, not only has the number of available town halls been increased, but new alternative solutions are also being studied. In particular, the study of new alternative solutions which aims to increase the number of available houses so as to meet the demand. Among these initiatives, we should mention that auctioning is now not only limited to an opening bid of 1 euro, but now goes from 1 to 15,000 euros. The price is still low, however, such an increase allows for the sale of more houses.

Due to the fact that the active repopulation of the village, which is the real basis of the project, often struggles to take off due to the majority of houses converted to tourist accommodation, over time, municipalities will continue to amend the requirements for potential buyers. Among these amendments, is the preference for investment projects in economic (and not just tourism) activities and a preference for families and young couples, which would present more favorable requalification standards for projects.

All in all, new life will be breathed into the economic framework of the municipality and of its area. Such developments could also be interesting for investors, even if they do not have requirements to participate in the public call for houses at 1 euro. As the setting up of a business in a developing area could be an intelligent investment strategy, considering the present low price for industrial assets and their possible revaluation, even in cases in which these assets would be sold on again.

After all, Italy is known to be characterized by small and medium towns, and therefore, small and medium enterprises that are producers of local excellences. Manufacturing niches that, even if in a small area, have a strong export value for their high-quality products, a quality that could be guaranteed only if they are farmed or produced in that specific area.

Therefore, the scenario concerning houses for sale at 1 euro could be an important investment opportunity from many different angles and our team is at the disposal for all potential investors. For any queries, please contact as at info@dandreapartners.com