Buying property in Sardinia
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"Lost between Europe and Africa and belonging to nowhere." That was how novelist DH Lawrence described Sardinia during his Mediterranean travels back in the 1920s. You can understand why, as the island, which is second in the Med only to Sicily in size, is as close to Tunisia as it is to Tuscany. Its remoteness is perhaps the reason why the island enjoys one of the lowest population densities of anywhere in Italy - but it is by no means cut off. For Brits, flights to the island have never been more plentiful or more cost-effective with Ryanair, easyJet, BA and Air One all flying daily to one of Sardinia's three airports. Sardinia is also served by regular ferries to and from Genoa, Naples, Sicily, Nice, Marseilles and Toulon. Ferries give buyers the flexibility to drive to the South of France and sail across the Mediterranean to Sardinia - an attractive prospect for those with a little more time on their hands.
So, what about property in Sardinia - has the Mediterranean boom reached the island? The short answer is yes, but development has mainly kept to the coast. The famed Emerald Coast, or Costa Smeralda, has long been a favourite amongst the jet set - not surprising as this stretch of Sardinia's already amazing coastline is truly magnificent. The marinas of Porto Rotondo and Porto Cervo welcome the gin palaces and yacht fraternity - indeed the islands and surrounding smaller isles make this part of the Med a sailor's dream.
It was the sailing that attracted English buyer Angela Giddings and her husband to the island. "We were looking for somewhere to invest in a buy-to-let apartment as we have a small property company here in the UK," she says. "We felt that Spain was too developed, and we just didn't feel safe investing in emerging markets. We visited Sardinia and it was love at first sight - the island itself is gorgeous, the beaches and surrounding waters are just amazing and perfect for sailing and the interior is also beautiful - especially in spring." Her only problem now is choosing a property from the many beautiful homes available.
The island boasts 1,850 kilometres of coastline and 500 hectares of natural reserves making it one of the most protected areas of the entire Mediterranean. "Strict new building laws in Sardinia prohibit any building within two kilometres of the coastline, and this has had a huge impact on property prices," says Angela Ciaccio, director of My Villa in Sardinia, a British company specialising in property sales on the island. "However, it is still possible to buy a two-bedroom apartment with beautiful sea views for around €160,000 [£107,000]. The most desirable area at present to buy is the south as the properties there represent the best value for money - it is here that we have seen the highest rise in property prices - around 20 per cent in the last two years."
The south-east has been attracting British buyers, and is sure to attract more as a new dual-carriageway will link the capital Cagliari to Costa Rey in the south east in record time once completed in 2008. Angela Ciacco expects property prices to continue to rise at around ten to 20 per cent in the coming years.
Charlotte Wootton and her husband have been holidaying in Sardinia for the last twelve years, so when they decided to invest in foreign property, there was little contest on where to buy. "We did consider the ski chalet option but with our young son, decided to go for the sun, sand and sea," Charlotte explained. Looking for somewhere that would be easy to let, The Woottons did their research and despite spending most of their holidays in the north and north-west of the island, they opted to buy in the south, about a 40 minute drive from Cagliari. They purchased a four-bedroom semi-detached villa in Torre delle Stelle, with a private garden and just a short walk from the beach. "Sardinia is a wonderful island", Charlotte continues, "it has beautiful beaches, and certainly has its own identity. In terms of what you get for your money, we felt it was a good investment." Their property has risen in price by ten per cent since they bought it at the beginning of 2005. Property here costs substantially less than on the already established northern coastlines, Geoff Rhind of Sardinia Holidays estimates that properties around Torre delle Stelle are priced at around €5,000 (£3,350) per square metre as opposed to €15,000 (£10,000) on the Costa Esmerelda.
Despite the long-time appeal of coasts such as the Emerald Coast, beachfront properties are still cheaper than on the pricey mainland Amalfi Coast and neighbouring Sicily. Alghero Estates is an estate agency based in Alghero specialising in the high-end of the market. Returning to her native town from London with English husband in tow, Maria Grazia Vendone began Alghero Estates to respond to the growing number of English buyers. "Alghero is one of the most beautiful, ancient and famous parts of Sardina," she explains. "The old town is called 'Barcelonetta' by the locals who still speak in a Catalan dialect, and the cobbled streets, historic city walls and seafront really give the visitor the true Sardinia. Alghero has seen extraordinary growth - in some cases 20 per cent per year. Because of the increase in international flights and the new law restricting building, we expect growth to continue at a healthy rate in the coming years".
On Alghero Estates' books, a high-spec, 83-square-metre, two-bedroom apartment with balcony in a residential area just five minutes from the centre of town is selling for €275,000 (£185,000). A stunning new development located five kilometres from town and just nine kilometres from the airport comprises luxury villas set in landscaped gardens with on-site shops, restaurants, pools and tennis courts. Two- or three-bedroom villas with panoramic views start at just €290,000 (£195,000). If you fancy building your own property, 5,000-square-metre plots with planning permission for up to 200 square metres in the Alghero area are selling for €129,000 (£86,500).Grazia Vendone estimates building costs to be approximately €950 (£640) per square metre.
Despite the popularity of areas such as the Costa Smerelda and Alghero on the west coast, much of the island is under-developed - stray away from the tourist towns and there are plenty of property bargains to be had. Head into the eastern mountains of Barbagia for example and you can find farms and deserted houses going for a song. In Palmadula, near Argentiera Beach, a large ruin set on 12,000 square metres of land with magnificent views of the surrounding countryside is a steal at just €105,000 (£70,000).
Buying a property in Italy is quite straightforward, although it is advisable to employ the services of an independent bi-lingual lawyer. For those who really want to relieve all stress and hassle however, a company called Live in Italy works as a go between for UK buyers and Italian real estate companies. Covering all of Italy including Sardinia, the company works with Italian agents to find property to meet buyers' criteria, then helps with the purchase. Dominic Hebblethwaite from Live in Italy says of Sardinia: "In the medium to long term, investing in Sardinia represents a good bet as it has the best coastline in Italy, if not Europe, wonderful food, weather and people."
Sardinia certainly isn't your 'double your money in a year' investment that you may be able to find elsewhere in Europe, but the island represents a solid future for property owners. Its natural beauty combined with its obvious value for money makes Sardinia an attractive prospect for those seriously looking for a second home with a good rental potential.
First published in Homes Overseas Magazine January 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
