Real estate in Italy: Current prices and popular regions

Italy as a premium real estate destination

Beautiful coastlines, alpine mountain regions, historic metropolises, and exclusive islands define Italy’s diverse landscape. The country fascinates with its varied coastline and an incomparable natural backdrop, stretching from the majestic Alps to the Mediterranean coast. The Italian Republic offers historic sites, deeply rooted culture, world-famous cuisine, and a unique lifestyle.

The combination of high quality of life, cultural depth, and economic stability makes the Italian market highly attractive for both national and international buyers. According to the current market report, international buyers now account for around 35 percent of property purchases in the premium segment.

Development of the Italian real estate market

Square meter prices for high-end residential real estate in Italy vary by region. While the exclusive holiday destinations and islands in the South mark the absolute peak prices, the Northwestern and Northeastern stand out as highly dynamic economic regions with constantly growing demand.

Second homes in Italy: The most popular regions

The demand for high-end real estate as a holiday home or a strategic investment is mainly concentrated in three landscape types, each characterized by very different buyer profiles and exclusive requirements:

Costa Smeralda and the large Islands

On the Costa Smeralda, a more mature, international clientele specifically looks for luxury villas that offer absolute privacy and direct access to the water. On Capri, the classic Mediterranean lifestyle is the main focus, though the highly limited supply of move-in-ready properties leads to unusually long marketing times.

The upper Italian lakes and Ligurian Riviera

The real estate market around Lake Como stands out with an international buyer share of 60 percent, with an impressive three out of five transactions completed entirely without bank loans. In Portofino and Santa Margherita Ligure, a continuously shrinking supply of premium properties is causing massive excess demand, shifting the market in favor of sellers.

The Alps: Cortina d'Ampezzo and Courmayeur

While prestigious Cortina d'Ampezzo is largely dominated by traditional Italian buyers, Courmayeur is increasingly opening up to international clients. Rapidly growing demand in Courmayeur leads to extremely short marketing times with buyers placing more and more value on year-round usability.

Urban Markets: Milan and Rome

• Milan: In this economic metropolis, the prime segment accounts for nearly two-thirds of all sales, with properties near the city center usually changing hands within just one to three months. Due to the influx of international executives, the rental sector is so highly competitive that there is almost no room for price negotiation on renovated apartments.

• Rome: When searching for real estate in the capital, spacious terraces, modern energy efficiency, and available parking spaces are at the top of the wish list for mostly local buyers. In the rental market, the noticeable return of former holiday apartments back into the traditional residential sector is bringing a welcome stabilization of supply to central neighborhoods like Prati.

How expensive is real estate in Italy?

For a detailed look at regional price structures, the following overview lists the most sought-after locations in the country:

Outlook and investment potential

The entire Italian residential real estate market is showing clear signs of growth, supported by a noticeable recovery in purchasing power and stabilized mortgage rates. As a result, the transaction volume increased by a total of 6.3 percent last year. For the forecast period from 2026 to 2028, Nomisma expects around 785.000 annual transactions.

While urban markets profit from economic stability, second-home destinations remain heavily driven by international demand and a structurally limited premium supply. High-quality construction, state-of-the-art energy efficiency, and unique micro-locations will continue to strengthen their long-term value.

Invest in Italy with Engel & Völkers

With a comprehensive network of over 100 locations in Italy, more than 1,300 local real estate consultants, and direct access to our global network across 36 countries, Engel & Völkers offers you the ideal platform for your property search or the successful sale of your premium real estate. Our local experts are here to guide you with deep market knowledge, the utmost discretion, and tailored service standards.