Why Italy is selling old homes to international buyers for Rs 260

The buildings are often attached homes, which meant that they could be expanded into one big property. (Image credit: @meredith.tabbone/Instagram)

Italy's Sambuca di Sicilia went viral in 2019 when it auctioned off some of its old abandoned homes with bids starting at $1 (about Rs 85). The town did it again in 2021 and 2024 with bids starting at $2 (about Rs 170) and $3 (about Rs 255), respectively. The idea was a great hit among tourists who came to visit and fell in love with the idyllic Italian life.

Soon, other towns in the country such as Mussomeli in Sicily and Zungoli in Campania too have begun to offer their deserted homes to depopulate neighbourhoods abandoned by people who moved out to look for better opportunities.

Bivona, a small town deep in the heart of the southern island of Sicily, allowed tax bonuses to anyone who wanted to pay just over a dollar to buy one of a dozen of its empty and dilapidated properties, CNN reported.

Here are 5 things to know about the trend that has mostly been a success in Italy:

1.) It is not a scam

Many buyers felt skeptical about the deal, wondering if it was a scam. Among them was US's Alexandra Stubbs who had felt a little rattled when she heard that a friend had bought one such house for a dollar. “I did the usual kind of thing – what the hell’s that all about, how is that going to work? I’m really skeptical,” she told CNN. Eventually, she ended up buying two such houses.

2.) The buildings are 'structurally stable'

The buildings might be old, abandoned, and in a state of disrepair, but they are "structurally stable", Giuseppe Cacioppo, the mayor of Sambuca di Sicilia, told CNN. Some of the properties feature courtyards and iron-wrought balconies. These are often attached homes, which mean that they could be expanded into one big property.

3.) How the bidding works

The properties are auctioned and sold to the highest bidder. The winning bid is opened in front of a judge. To participate, bidders have to pay a deposit of about $5,399 (around Rs 4.5 lakh) which becomes the initial deposit if the bidder wins and is returned if they don't.

4.) Deadline for renovation

Buyers must complete the renovation work on their homes within three years of acquiring it or lose or risk losing their deposit. Meredith Tabbone, a financial advisor from Chicago, who also ended up buying two homes in one such Italian town, ended up spending Rs 3.8 crore to complete the renovations in three years. "I have never done a renovation like this in my life," she told CNBC Make It.

5.) Boost to local economy

These sales have lured in international buyers as far as the Middle East and has helped to boost the local economy with an influx of around $21.8 million, the mayor of Sambuca di Sicilia told CNN.