Back in 2008, global headlines broke with a daring new story from Italy.
The mayor of Salemi, a small town in Sicily’s central region, was desperate to reinvigorate the local economy. Dozens of stone villas sat empty while locals were moving away more and more each year.
To prevent the economic death of Salemi, its mayor launched a project—one you’ve certainly heard of. Salemi became the first town in Italy to offer 3,700 abandoned villas up for a measly €1.
Though repairs would be pricy and buyers had to prove they could invest in the rebuild, it quickly took off.
Since then, dozens of dilapidated towns across the country have adopted a similar stance. For only €1, anyone (foreigners included) can purchase property with renovation plans. There are even websites that simplify the process of finding one.
The Italian government has also sweetened the deal, offering up to 110% back on sales of fully eco-friendly homes and earthquake-resistant homes. The idea, though risky, has generated chatter, praise, and criticism from around the world.
But how have these projects turned out? And is Salemi any better off today than it was in 2008? Let’s take a closer look at Italy’s €1 estate sales.
Salemi attracts celebrities
Salemi’s webpage for €1 homes is closed for the time being—which I’m taking as a sign that those first 3,700 villas offered up in 2008 are now owned by renovators. But nobody has forgotten about Salemi.
In 2012, the BBC launched a TV show called ‘Amanda And Alan: The Italian Job’. The eight-part show followed two British celebrities (Amanda Holden and Alan Carr) as they purchased and renovated a house in Salemi.
The show focused on a range of topics, from interior design to making friends with old Sicilian neighbors. By the end of it, the pair had managed to build a luxury rental that sold for €145,000. The proceeds went to charity.
What about non-celebrities?
Purchasing and renovating a €1 house isn’t really a risk for celebrities, especially when they have a BBC TV show tacked on to the project. So what’s happened to all the other buyers? Have they managed to flip their homes so expertly?
When I started this article, I expected to find a long history of failures when looking into €1 homes—but I’ve found the opposite.
It seems that most buyers are happy with their decision to invest in an Italian villa.
I’ve read about French couples from Nantes renovating their dream homes in villages like Mussomeli. I’ve read stories about Americans with Sicilian ancestry who purchased €1 home in their ancestors’ hometowns—only to realize their surname was still around.
Most tales involve years of incremental investment and diligent work. Many renovators split their time between their hometowns while they restore their €1 finds. In many areas, including in Sambuco, towns were able to launch bids for the €1 because demand was so high.
But not all that glitters is gold.
Obstacles: long-lost owners and building crews
After the success of Sicilian towns like Mussomeli and Salemi, dozens of other downtrodden Italian municipalities have sought to do the same.
But some areas like Patrica face obstacles. The village’s 40-odd abandoned structures were left back in the early 1900s. Despite sitting empty, they’re still technically owned by the heirs of the owners who abandoned them.
Long-lost heirs, specifically.
For years, Patrica’s local government has been trying to track them down to ask for their titles to be handed over. Interestingly enough, Patrica has seen booming interest from local Italians, many of whom are keen to preserve their town’s identity and culture.
Still, there’s a long road ahead if officials can’t find Patrica’s long lost heirs.
Back in Sicily, meanwhile, one UK buyer ran into an entirely different problem. When he purchased his home Musomelli, he immediately set out to find a building company that could get started on the renovations.
But he was far from the first to do so, and most of Sicily’s building companies have been booked out partly thanks to a multi-year €1 house sale boom.
By the time the building crew came, the UK buyer’s dilapidated villa needed double the work—at double the price. He sold his €1 home back to an estate agency, then opted to buy a more manageable fixer-upper for a larger sum.
The long-term
Over 15 years into the €1 home zeitgeist, all signs seem positive about this initiative. It spread from Sicily to other areas in Italy with great success. It’s helped breathe life into the Italian economy wherever these houses are sold.
But I can’t help but wonder about the cultural impact.
Will these movements help foster de-urbanization or will they be put up as luxury lodgings? Is it actually good for a town’s economy if retired folks move in and renovate these homes? And what do Italians think about foreigners moving in next door?
For now, it’s too soon to tell. Let’s check back in another 15 years.
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Publish date : 2024-06-07 05:42:23
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