Puglia continues to dominate the Southern Italian real estate market in 2026, with Bari and the Salento peninsula emerging as the top destinations for international property buyers. According to data from the Italian Revenue Agency, foreign purchases in Puglia increased by 23% in the first half of 2026 compared to the same period last year.
Bari: The Adriatic Hub
Bari is undergoing a significant urban transformation. The waterfront redevelopment project, combined with the expansion of the Karol Wojtyla Airport, is positioning the city as a strategic gateway between Italy and the Balkans. Average property prices in central Bari remain accessible at around 2,800 euro per square meter, compared to 4,500 in similar-sized northern Italian cities.
Salento: Lifestyle Investment
The Salento peninsula, encompassing Lecce, Gallipoli, and Otranto, offers a different proposition. Here, buyers are primarily seeking vacation homes with strong rental potential. A restored trullo or masseria can generate gross rental yields of 6-8% during the peak summer season, making it an attractive asset for lifestyle investors.
Key Considerations
Investors should carefully evaluate renovation costs, especially for historic properties subject to cultural heritage restrictions. The EU Energy Performance Directive also requires upgrades for properties rented short-term. Working with a local real estate consultant familiar with both the market dynamics and regulatory landscape is strongly recommended.