Italy's Affordable Regions: Puglia, Abruzzo and Sicily
If you are buying in Italy on a budget, the numbers point south. Analysis by the Agenzia delle Entrate's property market observatory (OMI) and the Italian Banking Association in the Rapporto Immobiliare 2026 puts the average home purchase in Molise and Calabria at just over €74,000 in 2025, more than half below the national average, while Trentino-Alto Adige tops the table at around €315,000.
Among the larger southern regions, Puglia, Abruzzo and Sicily stand out for combining low prices with coastline, airports and, since April 2026, a wider 7% flat-tax regime for foreign retirees. Here is what the official data shows and what each region offers.
What official data says about southern prices
The Rapporto Immobiliare 2026 reports 766,757 home sales in Italy in 2025, up 6.4% on 2024. Growth was strongest in the north-west (+8%), while the South rose a gentler 2.5% and the Islands around 7%, so southern markets are active without being frantic. Nationally, ISTAT's house price index rose 5.2% year on year in the first quarter of 2026.
Mortgage data tells the affordability story clearly. The average capital borrowed per home purchase in 2025 was €141,400 nationally, but only €110,900 in Abruzzo, €116,100 in Sicily and €120,800 in Puglia, with Molise the lowest of all at €96,600 and Calabria at €101,500, according to the OMI report.
- National average mortgage per home in 2025: €141,400 (OMI)
- Abruzzo €110,900, Sicily €116,100, Puglia €120,800
- Molise €96,600 and Calabria €101,500 are the cheapest of all
- Average home purchase price in Molise and Calabria: about €74,000 (OMI/ABI analysis)
Puglia: coast, trulli and strong flight links
Puglia offers two long coastlines, the whitewashed towns of the Valle d'Itria, the baroque cities of Salento and a large stock of stone farmhouses (masserie) and trulli. Bari and Brindisi airports keep it well connected to the UK and northern Europe year-round.
Demand is steadier here than in much of the south: Puglia recorded nearly 17,000 mortgage-financed purchases in 2025 per the OMI report. Eighteen Puglian towns also became newly eligible for the 7% retiree flat tax when the population cap rose to 30,000 in April 2026, according to Studio BCZ analysis via tax firm reporting.
Abruzzo: mountains and sea within reach of Rome
Abruzzo pairs Adriatic beach towns with three national parks in the Apennines, and much of the region sits within about two hours' drive of Rome. Among sizeable regions it has some of Italy's lowest borrowing needs, with the average purchase mortgage at €110,900 in 2025.
Inland hill towns offer habitable village houses at low prices, while the Trabocchi coast has seen growing interest. Five Abruzzo towns joined the 7% flat-tax list in the 2026 expansion.
Sicily: the busiest cheap market
Sicily is the largest southern market by volume, with nearly 17,000 mortgage-backed purchases in 2025, and the Islands overall saw transactions rise around 7% that year, per the OMI report. Prices remain among Italy's lowest, and 18 Sicilian towns entered the 7% flat-tax regime in April 2026.
Sicily is also home to the best-known one-euro house schemes, in towns such as Mussomeli, Sambuca di Sicilia and Gangi. These are real, but renovation obligations and costs mean an ordinary cheap house is often the better buy; we cover this in a separate guide.
What to check before buying cheap in the south
Low headline prices can hide costs. Older southern stock often needs structural work, much of the region is classified as seismically active, and cadastral records do not always match what was actually built, which must be resolved before a notary can complete the sale.
Budget for surveys and legal checks, and compare several towns before committing. Habio's Italy area guides and listings can help you weigh coast against hinterland and new-build against renovation.
- Commission a survey; earthquake classification varies by municipality
- Check cadastral conformity early; discrepancies delay or block sales
- Factor renovation costs into any bargain purchase
- Remember purchase taxes: 2% prima casa or 9% second home on cadastral value
Frequently asked questions
Which is the cheapest region to buy property in Italy?
On official 2025 data, Molise and Calabria, where OMI/ABI analysis puts the average home purchase at about €74,000, more than half below the national average. Among larger regions, Abruzzo, Sicily and Puglia have the lowest average mortgage sizes.
Are house prices rising in southern Italy?
Yes, but modestly. Italian transactions rose 6.4% in 2025, with the South up 2.5% and the Islands around 7%, according to the Agenzia delle Entrate's OMI report, while ISTAT measured national price growth of 5.2% year on year in early 2026.
Do Puglia, Abruzzo and Sicily qualify for the 7% retiree tax?
All three regions are within the scheme's scope. The 7% flat tax applies in municipalities of fewer than 30,000 inhabitants in eight southern regions including Puglia, Abruzzo and Sicily, provided the retiree meets the other conditions, such as a foreign pension and five prior years of non-residence.
Is it safe to buy a very cheap house in southern Italy?
It can be, with checks. Verify the cadastral records match the building, commission a structural survey given seismic risk, and budget realistically for renovation. A notary is mandatory and will verify title before completion.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.