From the turquoise waters of Sardinia to the timeless beauty of Sicily, Southern Italy and its islands remain among the most sought-after destinations for luxury property buyers seeking lifestyle and long-term investment opportunities.
According to the latest “Market Report Italy 2025” by Engel & Völkers Italy in collaboration with Nomisma, these regions continue to attract strong interest from both Italian and international buyers, with sustained demand driving a dynamic market across prestigious locations.
Puglia: timeless charm with growing demand
In Puglia, Bari’s Murat and Umbertino districts lead the market, with refurbished homes averaging €3,800 and €4,200 per square metre, respectively. The whitewashed towns of Ostuni and the Itria Valley are also performing well, with prices in areas like Savelletri and Fasano Mare ranging between €5,000 and €6,000 per square metre, drawing significant interest from foreign buyers.
Salento, with its enchanting historic centres including Lecce, Nardò, and Otranto, continues to attract overseas demand thanks to its unique architectural character, with property prices spanning €1,000 to €3,000 per square metre.
Campania: the allure of Capri and the Amalfi Coast
The Amalfi Coast and Capri remain jewels of Southern Italy, offering exclusivity and exceptional views. Capri, one of the most desirable destinations for luxury second homes, sees prices of €13,000–€14,000 per square metre for properties overlooking the Faraglioni.
On the Amalfi Coast, prices vary depending on the location: Ravello and Positano are among the most exclusive, with values between €6,000 and €10,000 per square metre, while Sorrento and the Sorrento Peninsula continue to attract high-end investors with prices reaching €8,000 per square metre in central areas.
In Naples, prime areas such as Chiaia, Posillipo, and Vomero record average prices of €7,500, €7,000, and €6,000 per square metre, respectively. The historic centre, particularly around Toledo and Museo, is increasingly attractive for investment and rentals, with refurbished homes priced between €4,000 and €5,000 per square metre.
Sicily: timeless beauty and international interest
Sicily remains a strong draw for buyers seeking diverse landscapes and heritage-rich towns. In Palermo, the seaside district of Mondello is particularly sought-after, with prices reaching €4,000 per square metre. In Catania, the areas of Scogliera, Lungomare, and Tivoli see refurbished property prices ranging from €2,800 to €3,800 per square metre.
Taormina’s property market has seen significant growth, with average prices exceeding €5,200 per square metre, especially along Corso Umberto and the seafront. Cefalù, with its historic centre and sea views, attracts both Italian and foreign buyers, with prices ranging from €3,000 to €7,000 per square metre.
Panarea, the jewel of the Aeolian Islands, continues to see high demand, with average prices above €7,000 per square metre, driven by international buyers seeking exclusivity.
Sardinia: prestige and lifestyle
Sardinia remains synonymous with high-end property, with Porto Cervo and Porto Rotondo leading the market at €26,000–€32,000 per square metre. Demand here is focused on luxury second homes, with strong interest from international buyers.
Other prestigious areas, including Olbia, Golfo Aranci, and San Teodoro, also attract steady demand, with top prices reaching up to €15,000 per square metre in locations such as Puntaldia and Le Farfalle.
Outlook for 2025
The premium property market in Southern Italy and the Islands is expected to remain robust in 2025, with steady demand for luxury second homes and exclusive residences, alongside a stabilisation of prices in the most sought-after areas.
International interest continues to drive the market, confirming Southern Italy and its islands as destinations of choice for those seeking to invest in a lifestyle defined by beauty, heritage, and Mediterranean living.
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