Inside Sardinia’s super-prime property market: Why buyers are drawn to the island

From waterfront villas in Porto Cervo to secluded homes in the island’s south, Sardinia continues to attract international buyers seeking a Mediterranean base. Ruth Bloomfield explores the appeal of the Costa Smeralda, rising property prices and the factors shaping demand across the island.

It was only in the 1960s that non-Italians discovered Sardinia. With its crystal-clear waters and white beaches, the island provided the perfect backdrop for old Hollywood and European royalty to enjoy “quiet luxury” breaks, where they could enjoy the dolce vita in peace, and its fame began to spread.

Today, Sardinia, and its northeastern tip, remains a hotspot for buyers looking for a Mediterranean base. Its turquoise seas and proximity to mainland Italy have also made it a sailing hotspot, hosting the 23rd Rolex Swan Cup this month.

While its original barefoot-pioneer vibe has been replaced by a sophisticated mix of world-class restaurants, beach clubs, superyacht marinas and international brands, the landscape is just as beautiful as it ever was.

That, plus enticing tax arrangements for high-net-worth homeowners, means that Sardinia continues to flourish, with prime prices up a healthy 10 per cent over the past two years.

The international property boom began in the 1960s when the Aga Khan developed the Costa Smeralda as an upscale resort, welcoming guests from Princess Grace to Greta Garbo. Towards the end of 20th century, Daniela Ciboddo, licence partner of Engel & Völkers Porto Cervo, observed buyers from Northern Italy, Britain and Germany, followed by Russians around 2007. When the Russian bubble burst, Middle East buyers took their place.

In 2017, Italy introduced a flat tax system for the UHNW set, who could opt to pay a fixed annual tax to cover all international income. That rate started at €100,000 (£85,300) per year, and has since been raised to €300,000, and has proved a major global incentive.

The island also appeals to high-profile visitors, with regular visitors and homeowners including Beyoncé and Jay-Z, Sir Elton  John, Leonardo DiCaprio, Gwyneth Paltrow and Adele.

Official data on real estate prices paints a somewhat misleading picture. According to the Italian Real Estate Company, the average price stands at €2,463 per square metre. But, while prices inland are low – you can pick up a home for €1 in some villages – they escalate on the coast.

In Porto Cervo, the heart of the Costa Smeralda, Ciboddo suggests buyers budget between €15,000 and €22,000 per square metre for an apartment, or €30,000 to €50,000 per square metre for a villa.

Waterfront property is in a league of its  own. Ciboddo is currently selling a 160-square-metre villa for the equivalent of €93,750 per square metre.

On the island’s prime northeastern tip, centred on Porto Cervo, Ciboddo estimates prices have grown 10 per cent since 2004. “You will never lose money when you buy something here,” she said. “It has been like that since the 1960s.”

Beyond central Porto Cervo, Emiliano Cruciani, CEO of Luxury Esmeralda, Savills’ associate in Sardinia, says ultra-prime locations include Romazzino and Cala di Volpe, villages just south of the main town, where the best homes sell for €90,000 to €150,000 per square metre.

Business has been brisk over the last two years, says Cruciani, who estimates that prime homes have increased in value by between 10 and 20 per cent, with scarce waterfront homes and contemporary turnkey villas proving hot tickets. Other items on wish lists include staff quarters, sustainability credentials and wellness amenities. “Demand remains significantly higher than available supply for best-in-class assets,” he says.

Cruciani believes part of the reason Costa Smeralda sees continued demand is the recent flurry of luxury hotel brands: Belmond, Cheval Blanc, the Four Seasons and the Mandarin Oriental, which is in building a resort nearby.

All this, said Cruciani, has helped reposition Costa Smeralda as a “global ultra-luxury destination” in the same league as Saint-Tropez  or the Côte d’Azur, which is helping widen demand for homes in the area. “We are seeing substantial growth from the United States, Northern Europe and the Middle East,” says Cruciani.

Another reason underpinning Costa Smeralda’s house prices is the island’s strict planning rules, which prevent overdevelopment, particularly by the sea, and keep stock levels low. “We are not like Majorca”, says Ciboddo. “We preserve nature.”

Beyond Porto Cervo and its satellite villages, the more peaceful Porto Rafael and adjacent village of Palau are loved by international buyers. Although just half an hour’s drive from Porto Cervo, they are “a different world” – quiet, tranquil and dotted with villas. It is also about 30 per cent cheaper than Porto Cervo, and suits those valuing peace and privacy.

Ciboddo believes the prime market will remain focused on the northeast, close to Olbia with its airport (Delta launched a seasonal non-stop flight here from New York), hospital and international school. Poor road infrastructure makes other areas inaccessible and inconvenient, she says. “Costa Smeralda is where all the marinas are too,” she adds. “From here, by boat, you can be in Capri in four hours.” The northeast also has an exquisite coastline, overlooking La Maddalena Archipelago.

Buyers who prefer to be off the beaten track and are willing to deal with some inconveniences could explore Villasimius and Chia in southern Sardinia, says Cruciani. Not only are prime properties in these villages roughly half the price of Porto Cervo, but Cruciani believes they are a great investment.

“They have strong upward potential due to exceptional beaches, lower density development and increasing luxury tourism infrastructure,” he says.

First published in the September 2026 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.