If you purchased property in Alghero area within the last 12 months you’ll pleased with the recently released property index report by Nomisma. Nomisma are the economic agency responsible for the annual market analysis on property prices across the whole of Italy. For the first time this year the Nomisma report is in-conjunction with F.I.M.A.A (the federation of Italian estate agents).

The report details a considerable rise in the Alghero region by up to 16.4% in some areas. Alghero real estate confirmed the second highest price rises in Italy confirming the West coast of Sardinian as the new Italian property hotspot.

Maria Vendone, Alghero Estates Managing Director comments “Alghero real estate prices have been influenced by multiple factors in the past year. These include regional building restrictions, demand versus supply gap, airport expansion and the subsequent increase in tourism.

Although the price of houses and land has increased the volume of sales has actually reduced from the volumes experienced a couple of years ago. This under pins the issue of supply versus demand and the effect on quality and what you get for your money. With these factors in mind we expect price increases to continue but maybe not at such a fast rate. 2007 has already seen a strong rental market and we expect rental returns to increase in the coming year.”

As you would expect the Nomisma report highlighted properties with sharpest price increase to be in the vicinity of the beaches and the sea front. Prices in the Alghero Lido area are now averaging 3,000 EUR per square metre. These prices are still way below the 15,000 EUR to 20,000 EUR paid in Costa Smeralda on the east coast.