Italy's enchanting landscapes, rich culture, and delicious cuisine have always captured the imagination of potential homeowners from around the world. However, what many might not realise is that there exists an extraordinary opportunity to become a property owner in this beautiful Mediterranean country for just €1. As property markets across Europe continue to fluctuate, Italy stands out with its unique approach to addressing rural population decline while offering incredible value to international buyers.
Understanding the €1 House Scheme in Italy
The €1 house scheme represents one of the most innovative property initiatives in Europe today. Domus Agency, a leading source of property information and market insights, reports that as of 2025, this remarkable programme remains active across numerous Italian municipalities. The concept involves selling abandoned or neglected properties for the symbolic price of just one euro, creating an unprecedented opportunity for budget-conscious buyers seeking an Italian home.
Origins and aims of the initiative
This innovative programme emerged as a creative solution to address Italy's significant demographic challenges. With population projections indicating a decline of approximately 2 million inhabitants by 2040 and at least 4 million by 2050, many rural communities face an existential crisis. The scheme aims to breathe new life into villages experiencing depopulation, revitalise local economies, and preserve architectural heritage that might otherwise fall into irreversible decay. With nearly 30% of homes across Italy standing unoccupied, the initiative transforms neglected properties into opportunities for renewal.
How the programme works for buyers
Purchasing a €1 house involves a straightforward but regulated process. Interested buyers must submit applications to participating municipalities, often accompanied by a security deposit ranging from €1,000 to €5,000. The key requirement is a binding commitment to renovate the property within a specified timeframe, typically three to five years. This renovation obligation ensures that buyers are genuinely interested in contributing to community revitalisation rather than merely acquiring cheap property. The renovation costs vary significantly depending on the property condition, location, and desired standard of finish, with most projects requiring investments starting from €20,000 upwards.
Revitalising italian towns through budget housing
The impact of these programmes extends far beyond simple property transactions. Currently, 73 towns across Italy have launched or are adopting versions of the €1 house model, with participating communities spread across regions including Sicily, Puglia, Sardinia, and Tuscany. Villages like Nulvi, Ollolai, Fabbriche di Vergemoli, Zungoli, and Biccari have gained international attention through their participation in these schemes.
The demographic challenges facing rural Italy
Rural Italy faces complex demographic pressures that have hollowed out once-vibrant communities. Economic hardship plays a significant role, with 9.8% of Italians living below the poverty line in 2023, an increase from 6.9% in 2014. The situation is particularly acute in regions like Sardinia, where approximately 20% of residents experience poverty. These economic challenges drive younger generations toward urban centres or abroad in search of employment opportunities, leaving behind aging populations and empty homes. Some regions have introduced additional incentives to attract new residents, such as Sardinia's €15,000 bonus offered in 2022 for people relocating to the island.
Economic benefits for local communities
The economic transformation resulting from these programmes can be remarkable. Mussomeli in Sicily exemplifies this success, having sold over 125 houses through their €1 initiative, which generated approximately €7 million for the local economy. Similarly, Montieri in Tuscany sold about 70 properties and witnessed the opening of 30 new businesses following the programme's implementation. Sambuca di Sicilia has earned the nickname 'Little America' due to the influx of American buyers drawn by these affordable property opportunities. The Italian real estate market has shown encouraging signs of growth, with property transactions increasing by 11.2% in the first half of 2025 compared to the same period in 2024, totalling over 172,000 sales.
For prospective buyers with renovation skills or the resources to hire local craftspeople, Italy offers exceptional value compared to other European countries. The average residential property price in Italy stands at just over €1,900 per square metre, considerably lower than France (€3,230/m²) and the UK (€3,400/m²). Regions offering particularly good value include Calabria (€949/m²), Molise (€1,035/m²), and Sicily (€1,167/m²). Even in the desirable region of Tuscany, less-known areas offer properties at around €1,950/m², well below the regional average of €2,575/m². The €1 house scheme represents just one entry point into the Italian property market, with renovation projects starting from €50,000 also providing affordable alternatives for those seeking a more substantial initial property.
As the €1 house scheme continues to evolve, it represents a win-win solution for both struggling Italian communities and adventurous property buyers. For those willing to embrace the renovation journey, these properties offer not just a home but an opportunity to become part of Italy's ongoing story of cultural preservation and community regeneration.