Blog - PugliaPrime

Rental Investments in Puglia. Where and How.

In part 2 of a 2 part article we consider the process of renting your property as a holiday home in Puglia.

How #1

When renting your property as a holiday rental (casa vacanze) it is a legal requirement that you report all guests to the authorities within 24 hours of their arrival. This includes guests who are Italian residents.

You are also responsible for collecting any local tourist taxes.

For this purpose you must register your property via the Polizia di Stato website.

To do this you must first register the property with the Puglia DMS (Digital Management System) to obtain a CIS (Codice Identificativo di Struttura), for which you will need a SPID.

You will also need a PEC email address.

How #2 | Getting a PEC

PEC (pronounced "peck", Posta Elettronica Certificata) is a certified email account that gives you proof your message arrived.

Messages sent between PEC accounts are certified with a date and time stamp to show when you sent them and when they were received, with a record of receipt automatically emailed to you as an attachment.

They have the same legal value as a physical lettera raccomandata (registered letter).

In some cases PEC may be the only way to send something online. For example an application by email to the questura for a carta di soggiorno can only be done emailing the questura's PEC address, which has to be done from another PEC account.

However any such email does have to come from an account in your own name. Someone else with a PEC - an employer, lawyer, family member or friend - can send the message on your behalf.

PEC accounts are managed by government-approved private providers. Poste Italiane, Aruba and InfoCert (Legalmail) are the most popular. A full list of authorised PEC providers is found here.

In most cases you'll also have to pay for a PEC account, with fees usually charged on an annual basis. Our PEC provider is Poste Italiane, costing €16.47 for a 3 year account with 100 MB of storage.

More | for more information about PEC (in English). Look out for | the Poste Italiane route requires you to sign the online generated contract and email it with a copy of ID before it will be activated. But they will not email you to tell you about this, you need to check your online notifications once you log into the PI site.

How to #3 | Getting a SPID

SPID (Sistema Pubblico di Identità Digitale) is electronic ID system allowing residents to access public services online.

It is set up using a single username and password to access Italian government services online, bypassing the need to subsequently present to an agency in person or show physical ID.

See the official Italian Government FAQ (in English) on how to get and activate your SPID.

Rental Investments in Puglia. Where and How.

In part 1 of a 2 part article we consider rental investments in Puglia.

According to Gate-away.com, a web site specialising in selling Italian homes to foreigners, Puglia is the second most searched region in Italy after Tuscany.

Where #1

Their data reveals that Ostuni, Monopoli and the Valle d’Itria are the most popular parts of Puglia for rental investment purchases. There is a longer season, typically from Easter to October and, in the case of Ostuni over, Christmas and New Year. In addition to the beach visitors are drawn here by other experiences; the vibrant towns, the countryside and especially food and drink.

The rental market in Salento and Gargano is primarily driven by beach tourism. Although properties, especially near the coast and particularly in Salento, will draw a premium rental over the summer months peaking in August, occupancy is not as likely to be steady until mid-June through to mid-September.

More detailed information from Gate-away.com also highlights that Ostuni, Monopoli and the Valle d’Itria draw more visitors with higher disposable income and greater spending power; Germans, Belgians and French, the British and Americans.

Where #2

Ostuni has the advantage of being close to the sea, surrounded by beautiful countryside and in a central location as a base for day trips and travelling around Puglia.

Where #3

The greatest demand for holiday rentals in Ostuni is in and around the Old Town/ Parco Rimembranze, within the Via Ludovico - Corso Umberto I - Vittorio Emanuele zone.

Proximity to the main square, Piazza della Libertà is important, the closer to the piazza, the higher the rental value.

Paragon 700 Boutique Hotel & Spa Pushes Up Ostuni Prices

Ostuni’s Paragon 700 Boutique Hotel & Spa opened in late 2000, a beautiful restoration of the historic Palazzo Rosso which had stood unloved for some 40 years.

Theirs is an aspirational vision. Starting with deluxe rooms to luxury suites, their latest “workation” package offers a 7-night half-board stay from €2,510 based on one person.

Bar 700 and Restaurant 700 offer impeccable service in a beautifully designed environment. And while the cost may be prohibitive for many of their neighbours, it has “benefitted” them with increased property values.

One local agent told us that the demand for properties in the zone spreading out from the hotel to the Piazza della Libertà between Via Roma and Via G. Sansone Senior has increased significantly since the hotel opened its doors, particularly since Spring this year. Properties closest to the Piazza back and then running along Corso Mazzini have seen the biggest increase in asking prices.

The Ostuni Market

Like the local produce and the weather, house hunting in Puglia follows a seasonal pattern. Over summer the market is mainly domestic. Activity picks up with foreign investors and holiday home buyers from October to December and again in Spring.

For the last two weeks we have been working with a client looking for a “casa indipendente” as an rental investment.

She was willing to take on a renovation project but equally, should the perfect ready to let apartment appear, that too was an option.

The first consideration is where to look.

For a rental investment the driver is maximising rental income. This meant advising on which parts of Puglia had a longer season to support sustained demand.

Most visitors look for a central location as a base. They may want to be close to the sea, but the chances are they may will want to visit Polignano a Mare and Alberobello, often Lecce and sometimes Matera in the neighbouring region of Basilicata. Accessibility to Puglia’s main airports is important.

Ostuni is the obvious solution on all counts.

The next consideration is - once again - where to look. Where to look in Ostuni. Most visitors want to stay in and around the historic centre: Via Ludovico - Corso Umberto I - Vittorio Emanuele, Ostuni.

So, location, location… and terraces then features. The focus shifts to what type of property to look at.

A terrace is a must. Vaulted star ceilings and stripped back stone walls are also on the list. Anything else isn’t attractive to the majority of visitors looking for a classic Ostuni rental.

And so we begin our search, viewing as many properties within those search parameters and budget - and round about. Near misses are sometimes useful to put everything else into context… and then some!

Rental Investments in Puglia

Puglia has become famous internationally for its stunning beaches, rolling olive groves, medieval white towns and wonderful food. The high percentage of tourists has also helped the region to develop and Puglia is now served by two international airports.

With an extended tourist season from April to October it has been a fashionable holiday destination for over a decade. Yet many parts of the region remain pristine and undeveloped.

According to a new study from October 2020 by property search portal Idealista, demand for property in the south of Italy is booming, with Puglia showing the highest growth.

Barletta-Andria-Trani saw the sharpest rise in searches for properties for sale, with 60% more searches than at the beginning of the year. The province of Brindisi recorded the best growth in searches for property rentals, also 60%.

This is consistent with findings from overseas property sales-specialist gate-away.com. They reported that Puglia’s most enquired about properties are in Monopoli and the Valle d’Itria, particularly Ostuni. It goes without saying that for rental property investments the best places to buy are the areas with strong and consistent tourist flow. The Valle d’Itria draws mainly foreign visitors with a high financial resource and has a longer tourist season extending beyond beach tourism. Whereas the Gargano and Salento are visited primarily for their incredible beaches.

Insider know how | Ostuni continues to attract visitors - its population more than doubles at the height of summer - because of its proximity to the coast and the rest of the Itria Valley. Carovigno, its lesser known closest neighbour, is becoming of interest; it is seen as offering better value. Whilst Alberobello has the highest concentration of trulli, they are not unique to the town; trulli accommodation in the Valle d’Itria countryside is likely to have a better rental income, yield potential.

About the writer | Scott is originally from the UK but has lived in Puglia for 4 years. He is a qualified solicitor with over 20 years’ experience at leading international law firms, based in their London offices, specialising in real estate investment. He is a successful property investor.

Buying in Puglia | Codice Fiscale

Codice Fiscale

The codice fiscale is a tax identification number. It does not mean that you automatically become an Italian tax payer by having one.

You will need it to be able to enter into various contracts or transactions; to open a bank or postal account, to sign a lease, for utilities’ contracts, to buy a vehicle or before taking out any insurance policy or taking up employment...

It also operates as a social security | national insurance number. You will need one to access the Italian health service.

It’s free and fairly easy to obtain. A good estate agent should be able to get this for you as part of the service he provides - at no extra cost. Do not believe any estate agent who tells you this is a complicated and costly exercise.

Alternatively you can obtain one yourself. Here is the link to the AgenziaEntrate - the Italian tax office - explaining in English how to get one.

Welcome to our Puglia. Welcome to your home.

Amazing Puglia | Bella Puglia

Puglia is the 7th largest and the longest of Italy’s 20 regions - around 400km from north to south. You are never far from the coast, of which we have plenty; around 800km of rugged limestone cliffs, rocky shelves punctuated by sea caves and secluded coves, and exceptional sandy beaches. All surrounded by sparking azure seas.

Think of our region in three parts; Gargano and the north, Salento to the south and sitting in between, the Valle d’Itria.

Gargano

The most overlooked part of our region it may be, but for beaches and geographical diversity, the Gargano is outstanding.

A national park stretches across much of Gargano’s interior, home to a vast array of flora and fauna, mountains rising to over 1,000m, and the dark and prehistoric Umbra forest. Towering cliffs and sea stacks plunge into the sea, meeting hidden coves and sublime sandy beaches.

Here you will find the medieval towns of Monte Sant’Angelo and San Giovanni Rotondo, and the popular holiday towns of Rodi Garganico, Peschici, Vieste and Mattinata Porto.

Valle d’Itria

Stretching from Putignano in the north to Ostuni in the south the Valle d’Itria is green and glorious, with rolling olive groves stretching as far as the eye can see. The landscape is peppered with trulli - traditional white stone dwellings with a conical roof. It has medieval white walled old towns: Locorotondo, Cisternino, both officially among i borghi piú belli d’Italia (Italy’s most beautiful towns), and la città bianca itself, Ostuni.

The picturesque towns of Martina Franca and Ceglie Messapica as well as the popular seaside town of Monopoli are all found in the Valle d’Itria.

It is home to the UNESCO World Heritage Site of Alberobello with its famous historic trulli zones, one of Puglia’s most iconic destinations. While just beyond in the nearby province of Bari you find another. Polignano a Mare, famed for its Lama Monachile beach, sandwiched between dramatic limestone cliffs and overlooked by the old town sitting atop.

The Valle d’Itria is the most visited part of our region. It is easily accessible from both of our international airports and has easy access to the beaches on both coasts - the Adriatic and the Ionian.

Salento

In Salento you will find some of Italy's best beaches - many award winning - and some of Puglia’s most interesting towns and cities. From the better known Gallipoli and Otranto whose old towns sit above fortified sea walls to the creamy baroque of Lecce and the faded sophistication of a seemingly Belle Époque Santa Maria di Leuca.

In between, the Salento peninsula has many slow and easy towns that sleep in the summer heat: Calimera, Carpignano Salentino, Castrignano dei Greci, Corigliano d’Otranto, Cutrofiano, Martano, Martignano, Melpignano, Soleto, Sternatia and Zollino.

Like Puglia itself, Salento is a place of contrasts. A dramatic rocky coastline stretches down the Adriatic from Santa Cesarea Terme to Leuca - at the southernmost tip of our region and world’s end in Roman times. Running back up the west coast to Gallipoli and beyond, is a vast almost non-stop strip of paradisiacal gold-white sand and transparent azure waters.

Welcome to our Puglia. Welcome to your home.

Amazing Puglia | Puglia’s Top 70 | #35 – 1

Le 70 Città pugliesi dove si vive meglio

Based on the following criteria, Puglia’s Amazing Puglia magazine ranked their list of 2020’s most liveable cities in Puglia.

For #70 - 36 see here.

The Criteria

1) local administration;
2) cultural and entrepreneurial presence;
3) infrastructure;
4) public education and university courses;
5) green areas and cycle paths;
6) projects presented and / or funded;
8) public safety and public order;
9) quality of public transport;
10) disabled facilities;
11) tourism;
12) restaurants;
13) waste recycling;
14) shopping;
15) care and restoration of historic centres.

One of the caveats that they ask their that readers to bear in mind when considering the list is that almost always the perception of the beauty and liveability of a place are different according to who is judging. A resident will give weight to day-to-day problems, such as rubbish collection. Whereas a tourist will overlook these, concentrating instead on their visitor experience - accessibility to beaches, restaurants and so on.

In compiling the results the magazine did recognise the efforts and long term planning of certain municipalities where longevity and stability of the administration has delivered results, warning that vision alone is not sufficient.

The Results

#35 | Rutigliano

#34 | Cisternino

#33 | Gallipoli

#32 | Corigliano

#31 | Francavilla Fontana

#30 | Taranto

#29 | Casarano

#28 | Ruvo di Puglia

#27 | Gioia del Colle

#26 | Andria

#25 | Mola di Bari

#24 | Grottaglie

#23 | Alberobello

#22 | Galatina

#21 | Mesagne

#20 | Altamura

#19 | Conversano

#18 | Bisceglie

#17 | Noci

#16 | Corato

#15 | Barletta

#14 | Molfetta

#13 | Nardò

#12 | Putignano

#11 | Ostuni

#10 | Fasano

#09 | Martina Franca

#08 | Polignano a Mare

#07 | Maglie

#06 | Locorotondo

#05 | Brindisi

#04 | Trani

#03 | Lecce

#02 | Monopoli

#01 | Bari

Amazing Puglia | Puglia’s Top 70 | #70 – 36

Le 70 Città pugliesi dove si vive meglio

Based on the following criteria, Puglia’s Amazing Puglia magazine ranked their list of 2020’s most liveable cities in Puglia.

The Criteria

The Results

#70 | Cerignola

#69 | San Severo

#68 | Peschici

#67 | Lucera

#66 | Bitonto

#65 | Vieste

#64 | Crispiano

#63 | Mottola

#62 | Canosa

#61 | Ginosa

#60 | Santeramo

#59 | Taviano

#58 | Margherita di Savoia

#57 | Monte San’Angelo

#56 | Pulsano

#55 | Carovigno

#54 | Oria

#53 | Manduria

#52 | Lizzano

#51 | Latiano

#50 | Leverano

#49 | Monteroni

#48 | Copertino

#47 | Acquaviva

#46 | Galatone

#45 | Manfredonia

#44 | Massafra

#43 | Gravina in Puglia

#42 | Giovinazzo

#41 | Otranto

#40 | Turi

#39 | Ceglie Messapica

#38 | Martano

#37 | Castellana Grotte

#36 | Foggia

Buying in Puglia | Introducing PugliaPrime

Why we founded PugliaPrime

We were asked to view some properties here in Puglia for friends living abroad.

“Ah, yes - photos. With the demise of the sole agency contract a lot of agents have decided not to put accurate photos on the website, convinced that the competition will either steal them or go and find the house and persuade the owner to let them sell it instead. It is possible that the house you fall in love with was in fact sold some years ago or is in a different town... You won’t always find internal photos on the web either - probably the owners don’t want all and sundry looking at their ornaments...”

— Buying in Italy 2020: The complete guide to buying a property in Italy by Ramsay Gilderdale

With a background in property law and the Italian services industry, and having been through the process of buying property in Puglia, we realised that we were perfectly placed to view, review and report on the properties and to carry out a non-legal due diligence on their behalf.

Flattening out some of the communication issues experienced due to language and cultural differences, meant we could add value. It was easy for us to liaise with the estate agent to ensure the necessary legal protections following our investigations found their way into the purchase contracts.

We were inspired to put our professional skills to use. So we set up PugliaPrime. A service that allows you to streamline your property selection process.

Nothing is more frustrating than viewing a property you know is not for you as soon as you see it. For a modest fee we can View | Review | Report on a property for you. Unsuitable properties are eliminated before you visit Puglia, so you don’t waste time viewing them when you get here.

A property’s shortcomings may not be apparent until you view it. Having a limestone factory with a chimney pumping out thick smoke nearby, or the next door neighbour using his land as a tyre dump is not for everyone.

On the website this charming property had much promise.

Buying a home in Puglia - PugliaPrime — The estate agent’s website is unlikely to show this view of neighbouring land.

Our service is also useful if you are unable to visit Puglia due to travel or other restrictions, but prefer to continue your search for a home here.

Welcome to our Puglia. Welcome to your home.