Seaside properties in Italy – dream or investment trap?

The longing for the sea – and what really lies behind it. A house by the sea in Italy – for many people, this is the epitome of a lifelong dream. The idea of having breakfast on the terrace overlooking the Mediterranean in the morning, enjoying the sunset over the water in the evening and strolling through small coastal villages in between awakens emotions and longings.

No wonder, then, that properties along the Italian coast are in high demand. But there is often a long way between romantic imagination and economic reality. Purchase prices, maintenance costs, approval procedures and ecological risks can quickly make it seem like a bad idea – or make it expensive.

So how do you balance a project that you care about a lot with making money from it?

Where dreams can come true – an overview of popular coastal regions

Italy offers an impressive variety of coastal landscapes – from the rugged Riviera to the gentle beaches of the Adriatic Sea to the wild bays of Sardinia. However, depending on the region, not only the ambience but also the property prices and potential returns vary significantly.

Expensive classics

The Amalfi Coast, Capri and Portofino are well-known for being luxurious, exclusive places with stunning views, but also with very high prices per square metre. Investors here often pay over £6,000 per square metre and more.

The middle class is in high demand

Liguria (e.g. on the Riviera of Flowers), the Tuscan Coast and parts of the Upper Adriatic offer a good balance between location, infrastructure and stable value, with prices per square metre ranging between €3,000 and €5,000.

Up-and-coming regions with potential

In southern Italy – for example, in Apulia, Calabria, Sicily or Sardinia – attractive offers can still be found from around €1,200 per square metre. Demand is rising, particularly from foreign buyers looking for charming second homes or high-yield holiday properties.

How to turn your property into more than just a holiday home

A house by the sea does not have to be purely a collector’s item. Many buyers combine their own use with a targeted rental strategy – especially in the months when they are not there themselves. This not only provides financial relief but can also be an interesting source of income.

Tourist rentals – for example, via platforms such as Airbnb or Booking – are quite lucrative in popular coastal regions. Especially in the high season, prices between £700 and £1,200 per week for a well-equipped holiday flat are realistic.

Long-term value appreciation is a second factor: particularly in up-and-coming regions such as Apulia and Calabria, prices are expected to rise steadily as infrastructure, international awareness, and demand increase.

Sample calculation: How a holiday home pays off

The following calculation example shows how the investment can be worthwhile in concrete terms:

A charming, modernised holiday apartment in Apulia – 80 m², two bedrooms, balcony with sea view – costs around £160,000. You rent out this apartment during the high and low seasons for around 20 weeks a year, at £800 per week.

• Gross turnover: £16,000 per year
• Deductions for cleaning, administration, platform fees, maintenance: approx. £3,000
• Net income: £13,000!
• Return on purchase price: approx. 7.2%.

This leaves you the option of using the property yourself during the low season or renting it out for longer periods. However, it is important to note that these figures are based on good occupancy rates and professional management.

Risks you should be aware of – and how to deal with them

Despite the tempting prospects, there are risks that should be taken seriously:

1. Environmental challenges

Coastal erosion, rising sea levels, and salty air take a heavy toll on buildings. The building fabric (roof, windows, waterproofing) should therefore be inspected and regularly maintained.

2. Maintenance costs

Properties near the sea age more quickly. Repairs are frequent and materials must be corrosion resistant. Allow for 1–2% of the purchase price per annum for ongoing maintenance.

3. Legal restrictions

In many regions, there are building regulations or bans on new tourist rentals. Find out about regional regulations at an early stage – especially if you are planning renovations or rental permits.

4. Seasonal dependence

Income is heavily dependent on tourism. In poor summers, or when travel warnings are issued (as during a pandemic), occupancy rates can drop dramatically.

What to look out for when buying

Buying a house by the sea is not something you do on impulse. If you are thinking economically, you should keep the following points in mind:

• Location: Properties on slopes or slightly elevated offer better protection against flooding and often provide spectacular views.
• Building fabric: Pay attention to damp, salt damage, the condition of the insulation, and window insulation.
• Infrastructure: Proximity to supermarkets, airports, train stations and beaches is crucial – both for personal use and for renting out.
• Future viability: Are there plans for tourism development, new roads or ports? This can have a positive impact on value development.

Financing, marketing and exit – these are also important factors

Many foreign buyers finance their property through banks in their home country, or through Italian credit institutions with local connections. Depending on creditworthiness and nationality, an equity share of 30–40% is common. Important: Proof of income should be translated and certified.

For marketing, we recommend professional, local management – with experience in holiday rentals, multilingualism and digital booking processing. This not only ensures occupancy, but also a reliable process.

What if your circumstances change? No problem – with a property by the sea, you remain flexible. You can sell, bequeath, or use the house yourself permanently. The exit strategy should therefore be considered from the outset.

Conclusion: Between wanderlust and financial planning

A house by the sea in Italy is a project full of emotion – but also full of responsibility. Those who decide solely with their hearts run the risk of falling into a return trap. On the other hand, those who calculate wisely, ask the right questions, and seek professional advice can fulfil this dream – without suffering financial shipwreck.

After all, the best view is not only the one overlooking the sea, but also a secure investment with personal added value.