The €1 Housing Revolution Bringing New Life to Europe’s Forgotten Towns
Countries all across Europe have taken an unorthodox approach to revitalize their most rural regions. This strategy is centered around “Ghost Towns.” These towns have been completely abandoned by their residents and left to rot in unoccupied areas. Dying rural towns and many other separate issues have resulted in an excess of departures, causing a significant population crisis in several European countries. The absence of employment opportunities and any sort of universities have led the younger populations to move into more populated zones. These issues have led countries to propose jarring ideas with hopes to bring investment and opportunity back to these areas. By listing entire houses in these zones for one euro, on the basis that the purchased property would be revitalized, Italy hoped to spark a change in 2008. Refurbished homes could lead to an influx of people in urban areas, giving these towns and Italy, as a whole, a much-needed economic boost.
- Courtesy of The Telegraph
This bold proposition gained traction in late 2010 in Italy when deteriorating towns began adopting this strategy. One town in particular, Mussomeli, has sold over 100 homes for one euro, and it has been a major advocate for the program. The one euro purchase comes with additional costs tied to the deed and realtor fees. Popular homes, at times, can sell for more than the one euro target initially sought after when bidding begins. This opportunity has become more well-known over time, driving the prices up. The biggest catch concerns the entire purpose of the homes selling so cheap in the first place. Once the property is purchased, it is a requirement that the owner revitalizes the space in the first few years after purchase. These renovation costs often range between €20,000–50,000, which is still relatively cheaper to many other nations. This requirement sets the foundation for building these towns back up into operational communities and has proved successful for many towns in Italy.
One underlying difficulty for foreign investors looking to purchase these properties or entire villages in Italy is that they must do so as “non residents.” This entails that the owner must pay elevated taxes associated with the property. In addition, the owner would have certain restrictions on the number of days they can spend in their property.
A glimpse inside a Sicilian home purchased for one euro: stunning before-and-after transformation. Courtesy of Idealista.
To give an idea of the type of return investors in these properties can make, BBC provided some insight on a property in Sicily. Two properties, each purchased for one euro, were listed at 145,000 euros each in 2023. This type of return draws strong interest from investors, mainly in the United States, who benefit these small towns by making them a peaceful destination for tourists looking to travel. Towns across Europe would prefer to attract permanent residents, but an increase in tourism still benefits their economies and can help build up the towns. The town of Mussomeli, Italy, has seen a 3000% increase in tourism since they introduced the one euro program, further proving this implementation successful.
Soon following Italy’s introduction of one euro homes, several Countries across Europe and Asia followed suit. Countries like France, Switzerland, Japan, the United States, and many others have implemented the idea. This process has even evolved to permit the purchase of entire towns amongst many of the same countries that utilized the one-euro sales. Spain, in particular, has roughly 2,900 villages for sale. The purchase of villages doesn’t follow the same pricing parameters set for the one-euro homes, but they are still selling at discounted prices, allowing for tremendous investment upside.
Many of these homes and villages up for sale are positioned in gorgeous areas exuberating natural beauty. One of the most appealing cities to me, following the one euro scheme, is Monti Scìaga, Switzerland. A town built around a vast array of mountains that eludes a calmness many tourists seek. This feeling is especially apparent during the winter months, as the snow cloaks the town and mountain tops, creating an isolated peaceful getaway. The one euro scheme creates great opportunity for a town like this. With sufficient investment, this rural town could flip into a thriving community. Monti Scìaga has been almost completely vacant since the 1970s, so it makes sense for the area officials to offer homes for so cheap.
- Courtesy of Realestate.com
The revitalization of abandoned towns through one-euro home schemes is a testament to the ingenuity and resilience of countries striving to address population decline in their most rural areas. These initiatives not only breathe life into forgotten communities by bringing opportunity and spending but also offer unique opportunities for investors and adventurers alike.
If you want to learn more about these homes and villages for sale or are looking to purchase one, the links below will assist you.
Sources:
CNBC - Americans Investing in $1 Homes in Italy
Independent - Italy’s One Euro Houses: How You Can Buy One
Travel + Leisure - Here’s Where You Can Buy Homes For Just One Euro
Tripoto - Abandoned Villages For Sale in Spain
Idealista/News - How 1 Euro Houses in Italy can be a Great Investment Opportunity
