Market Report Italy 2025
The first report on Italy’s luxury real estate market
Our market report Italy 2025, developed in collaboration with Nomisma, provides an in-depth analysis of the luxury real estate sector across Italy’s key cities and regions. It highlights demand trends, pricing, and future market outlooks, with a focus on the most prestigious areas and critical factors such as location and property condition.
Market insight Italy
Trends, market performance and more about the real estate
Market trends
In 2024, the Italian residential market is showing signs of stabilization, easing the downturn that began in early 2023. Data from the second and third quarters indicate a slight recovery, with increases of 1.2% and 2.7%, respectively, partially offsetting the first-quarter decline of -7.2%. As a result, the annual reduction was limited to -1.1% over the first nine months of the year.
Interest rates
Unlike the traditional real estate market, the luxury sector in Italy is less affected by interest rate fluctuations due to its lower reliance on bank financing. Engel & Völkers’ Market Report Italia 2025 highlights that the luxury segment maintained strong demand throughout 2024, despite interest rate trends. This resilience is driven by high-net-worth buyers and a growing interest from foreign investors.
Market dynamics
Milan remains the most expensive city, with property values reaching up to €22,000 per square meter in exclusive areas like Brera and the Quadrilatero. Along the coast, Portofino and Santa Margherita Ligure see top prices of up to €25,000 per square meter for sea-view properties. In the mountains, Cortina d’Ampezzo retains its prime market status, with prices ranging between €18,000 and €24,000 per square meter.
Confident in the value of our analysis, we hope to bring significant benefits to the real estate market by helping operators, entrepreneurs, professionals, and clients navigate investments, sales, rentals, and property purchases in the mid-to-high-end segment across Italy’s prime locations.