The Luxury Real Estate Market in Italy

The luxury real estate market in Italy continues to strengthen both in major cities and in the expensive second home segment. According to research by Patrigest and Santandrea, the growing number of wealthy individuals, favorable tax conditions for large capitals, and the interest of foreign investors support high demand for premium housing. Milan remains the main center of the market, while prestigious resort destinations retain their status as the most attractive locations for investment.

Growth of wealth supports the market

The luxury real estate sector in Italy demonstrates resilience and stable development. One of the main factors of growth has been the increase in the number of wealthy residents of the country. The number of taxpayers with an income of over 120,000 euros per year has increased by 39% compared to 2008, despite the economic crises of recent years.

With capital growth, real estate is increasingly seen not only as a place to live, but also as a way to preserve and strengthen wealth. In 2024, the share of property owners among the wealthiest families reached 95.3%, while twenty years ago this figure was 92.9%. At the same time, interest in renting is gradually declining.

Geography of luxury housing

The highest prices - over 6,000 euros per square meter - are concentrated in the largest cities and prestigious tourist areas: on lakes, in the Alps and on the coast. It is here that the high-end real estate market accounts for a significant portion of the total supply.

Along with Milan and Rome, smaller elite municipalities such as Basiglio and Forte dei Marmi also stand out, with a particularly high concentration of wealthy residents. Milan remains the country's most prestigious market, while Rome is also second only to Florence and Venice in terms of attractiveness.

Among large cities, Florence leads in terms of the share of luxury real estate—almost 30% of properties are in the premium segment. Milan, Naples, and Bologna follow.

A Sharp Growth in Demand for Second Homes

The market for expensive second residences is developing particularly actively. The number of transactions involving properties priced over €1 million has grown by 22% over the past year, and the volume of this segment has virtually doubled in ten years.

Today, second homes account for approximately 76% of all transactions in the real estate category over a million euros. These properties are increasingly being purchased not only for leisure, but also as an investment asset for capital diversification.

Even during periods of market instability, the segment demonstrates high resilience and quickly recovers from downturns.

Changing demand structure

The study also shows a supply shortage in the mid-premium segment with prices ranging from €6,000 to €10,000 per square meter. The shortage of small apartments is particularly noticeable: two-bedroom properties account for 43% of demand, but only 33% of supply.

This indicates a change in buyer preferences, including wealthy clients, and creates opportunities for new renovation projects and smaller-format housing construction.

Luxury Rentals and the Tourism Market

The premium rental segment also remains active. Rates above 20 euros per square meter per month are typical primarily in large economic centers. Milan and Rome lead the way thanks to strong demand from professionals, managers, and international businesses.

In tourist regions—especially seaside and mountain resorts—luxury rentals are also in steady demand, and second homes continue to play a key role in the market.

Characteristics of the largest cities

Milan remains the main benchmark for the Italian luxury market. In the historic center, housing prices exceed 12,600 euros per square meter, and in prestigious areas such as Brera and Porta Nuova, prices reach over 14,500 euros. High demand is supported by both local and foreign investors. The average sale period for properties is 4-6 months.

Rome is distinguished by a unique historical fund and prestigious properties in the city center, where prices are around 10,300 euros per square meter. Buyers include both local wealthy families and foreign investors. Property sales here typically take 5-6 months.

Florence has a high share of luxury housing and significant interest from international buyers. Historic villas and restored residences with panoramic views are particularly in demand. Due to the highly selective market, exposure periods can exceed one year.

Bologna, Turin, and Genoa are developing according to their own models: Bologna is known for its market stability, Turin for its more affordable prices and high-quality architecture, and Genoa is valued primarily for its location and sea views.

Investments continue to grow

2025 was also a successful year for the Italian real estate investment market. Total investment reached €12.3 billion, up 20% year-on-year.

Residential investments totaled approximately €841 million, while the luxury housing market exceeded €300 million. Investors are most interested in construction and renovation projects.

Milan remains the leading capital magnet, accounting for nearly 79% of luxury residential investment. Rome, Florence, and iconic destinations such as Portofino follow.