Italian Real Estate Market: Price Trends and Where to Invest

Price Trends in Italy

In recent years, the Italian real estate market has shown remarkable resilience. After the strong post-pandemic growth, prices have now stabilized, remaining high in premium locations. The Market Report Italy 2025 by Engel & Völkers highlights that urban areas in the North have maintained steady demand, the Center continues to attract interest for historic cities and Tuscan hills, and in the South and the islands, luxury vacation homes are increasingly sought after.

Luxury Real Estate Market Trends in Northern Italy

Northern Italy has long been the heart of the luxury real estate market and in 2025 continues to be one of the most dynamic areas in Europe. Iconic cities and locations offer very different scenarios, all united by steady demand from both Italian and foreign buyers.

Milan remains the sector’s capital. In the Quadrilatero della Moda, prices exceed €15,000 per square meter, while the city average is around €8,500/m². The city continues to attract professionals and international capital, consolidating its role as an economic and cultural hub.

Venice is a unique market: the scarcity of available properties and the uniqueness of the setting mean that luxury residences, especially those overlooking the canals, reach very high values. For many foreign buyers, owning a palazzo or an apartment in the lagoon represents an exclusive and irreplaceable investment.

Turin stands out for a renewed appeal. Urban redevelopment and the growth of international tourism have brought attention back to the residential market, with values ranging from €4,000 to €6,000/m². This competitive positioning compared to Milan makes the city particularly attractive for those looking for investment opportunities with high growth potential.

The Northern Lakes remain a global attraction. In particular, Lake Como continues to lead thanks to its historic lakeside villas, which can reach €20,000/m². Here, foreign demand predominates, with buyers from the United States, Germany, and Gulf countries. Lake Maggiore and Lake Garda also remain solid markets, with slightly more accessible prices but still rising in prestigious locations.

Luxury Real Estate Market Trends in Central, Southern Italy and the Islands

Central Italy remains a reference point for those seeking luxury properties, both as primary residences and second homes.

In Rome, the market remains lively, with prices in the historic center exceeding €10,000/m², particularly in areas like Piazza di Spagna and Piazza Navona. The capital maintains strong appeal for foreign investors, attracted not only by its timeless beauty but also by the stability of the high-end residential market. Neighborhoods such as Prati and Parioli remain solid, with average values around €6,000–7,000/m².

Tuscany is another favorite region for international buyers. Florence, with its UNESCO-listed historic center, has values ranging from €5,000 to €10,000/m², while the Tuscan countryside—from Chianti to Val d’Orcia—continues to attract foreigners looking for farmhouses and historic villas. Even the Tuscan coast sees growing interest, thanks to high-end tourism and exclusive locations like Forte dei Marmi.

In Southern Italy, demand is concentrated in seaside towns and art cities. In Naples, urban revitalization and sea views drive the luxury market, with prices reaching €7,000/m² in the most exclusive areas such as Posillipo and Chiaia. The Amalfi Coast remains one of the most desired destinations, with villa prices often exceeding €10,000/m².

The Italian islands complete the picture. In Sardinia, the Costa Smeralda remains iconic, with beachfront villas surpassing €15,000/m², making it one of Europe’s most expensive areas. Sicily offers a more varied market: cities like Taormina and Ortigia register high values, while other inland areas still offer opportunities at more accessible prices, often below €3,000/m².

Second Homes in Italy: The 5 Most Popular Areas

For second homes, Italy’s charm remains unchanged. Tuscany is the top choice, loved by foreign buyers for farmhouses among vineyards and olive groves. Lake Como continues to be an international attraction, with lakeside villas among the most expensive in Europe. Sardinia, particularly the Costa Smeralda, remains one of the most exclusive destinations, with values reaching up to €32,000/m². Puglia, especially the Valle d’Itria, is increasingly appreciated by Northern Europeans, thanks to restored masserie and trulli. Finally, the Amalfi Coast and Capri remain iconic destinations, where limited supply pushes prices higher.

Do You Want to Sell Your Home in Italy?

In a constantly evolving market like Italy, selling a home today requires attention, expertise, and a well-designed strategy. Data show that prime locations continue to maintain strong appeal, both for Italian buyers and foreign investors. Whether it’s a lakeside villa, an apartment in the historic center of Rome, or a seaside property in Sardinia, international demand is growing and represents a unique opportunity for those wishing to maximize the value of their property.

Relying on an experienced partner allows you to position your property on the market with the right visibility, reaching not only local buyers but also international clients looking for an exclusive residence in Italy. Selling today is not just about closing a deal—it’s about turning your home into a true investment in value.