IT may sound too good to be true, but an Italian town is set to sell 500 homes for one euro (US$1.12) each.

Mussomeli in southern Sicily has put 100 empty properties up for sale online for one euro, with another 400 expected to follow.

Some of the homes are very small, but are made up of multiple bedrooms and offer stunning views across the Italian countryside.

The local government signalled the houses were available by putting signs on the doors — but there is a catch.

Anyone who buys a house has to renovate it within three years or face losing their deposit, which is reportedly US$8,000.

Restoring the homes has been valued at about US$107 per square foot as well as admin costs of US$$4,000 to US$6,450.

Local architects and engineers are on hand to help with the work but buyers can choose to get outside help if they prefer.

The move comes as Italians have left the rural areas for cities in recent years.

It has forced local authorities to sell off empty houses for the knock-down prices.

Mussomeli, which sits two hours southeast of Palermo, has Byzantine caves, a medieval castle as well as numerous ancient churches to sweeten the deal.

Last year, Ollolai, which is nestled in the mountain region of Barbagia on Sardinia Island, offered 200 abandoned stone dwellings for just one euro each.

The town’s population had halved over the past three decades, with just 1,300 people — mostly middle-aged childless couples — left.

With just a small number of babies born each year, Ollolai’s mayor decided to prevent the population plummeting further by launching the “houses for €1” scheme in 2015.

Again, there was a catch, as buyers had to commit to refurbishing each house, which were all in poor conditions, within three years at an estimated cost of up to €30,000.

(SD-Agencies)