Salento & Puglia 2026: Why the real estate market continues to boom and what is really changing now
Dear group,
2026 will be a truly exciting year for the real estate market in Puglia, and especially in the Salento. The upward trend of recent years is continuing, but with a few important new nuances.
Price development & outlook
Prices continue to rise, but more moderately than during the hype years of 2022-2024. Currently, the regional average in Puglia is around €1,450-1,500 per m² (as of the end of 2025). In the Salento, we see the following ranges depending on location:
- Ionian coast (Gallipoli, Porto Cesareo, Ugento): €2,000-2,500 per m²
- Adriatic coast (Otranto, Castro, Santa Maria di Leuca): €2,200-2,800 per m²
- Inland (Lecce city & surrounding area): €1,600-2,200 per m²
For 2026, most analysts (Nomisma, Immobiliare.it, local agents) expect another +3 to +6%, especially for renovated masserie, villas with pools, and properties within 500 meters of the sea.
The reason: the supply of truly high-quality, turnkey properties remains limited, while demand continues to grow.
What is driving the market in 2026?
1. destagionalization becomes reality
The region is investing heavily in events, food festivals, and improved connections (e.g. more train connections Bari-Lecce-Otranto, new shuttle services).
Result: More visitors are coming from October to April → higher occupancy rates and rental yields (currently 7-9% large are possible with a good location and professional management).
2. international buyer mix
In addition to the traditional British and German buyers, we are now seeing significantly more Scandinavians, Swiss, Americans, and even Eastern Europeans. Many are buying as a second home combined with a rental investment.
3. sustainability & energy efficiency
From 2026 onwards, properties with energy class A or B will sell much faster and at higher prices. Anyone who still owns an old masseria with energy class G and upgrades it to A/B (photovoltaics, heat pump, insulation) can achieve 20-30% higher values.
4. new incentives & tax advantages
The regional government is increasing Mini-PIA and tourism incentivesespecially for conversions into boutique hotels or high-end holiday accommodations. In addition, the 7% flat tax for new residents and foreign retirees remains in place.
Hot spots for 2026
- Southern Salento (Santa Maria di Leuca area): still a "more affordable" entry point, but demand is exploding
- Santa Cesarea Terme - Castro - Otranto: luxury segment booming
- Lecce city: young Italians and digital nomads are discovering the Baroque city → apartments in the historic center +15% in 2025
- Inland areas (e.g. Castrignano, Martano, Calimera): masserie under €400,000 are becoming rare
Conclusion for buyers & investors
Anyone who entered the market in 2024/2025 did everything right. Those who are waiting now, hoping prices will fall again, will likely be disappointed. Supply is shrinking, quality is rising, and the region is becoming attractive year-round.
2026 is no longer a "bargain year," but it is still significantly cheaper than Tuscany or the Amalfi Coast with comparable returns and quality of life.
If you have questions or are looking for current listings, feel free to reach out!
What do you think are you entering in 2026, or are you already in?
#Salento #Puglia #RealEstate #RealEstateItaly #Apulia2026
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