Rental Investment Archives

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.