Market Resilience and Price Stability

Despite global economic uncertainty, Italy’s prime property markets have demonstrated resilience and price stability, with several regions posting robust growth over the past five years.

Lucca leads with 26.5% growth, Lake Como is a close second with 26.3%. Florence saw a 23% increase to €10,540 per sq m, while Venice climbed 19.3% to €7,574. Milan and Rome also posted solid gains, up 17.6% and 15.1% respectively, with Milan now at €18,500 per sq m.

This sustained growth is driven by strong international demand boosted by Italy’s flat tax regime, changes to the UK non-dom rules, and lifestyle factors such as security and top international schools. These elements continue to attract global wealth, underpinning price stability and resilience in Italy’s most desirable markets..

Buyer Sentiment

Italy’s rich culture, cuisine, scenic beauty, and relaxed pace continue to attract international buyers across all demographics. Retirees are drawn by excellent healthcare and tax incentives, remote workers by vibrant cities and connectivity, and families by quality education and community. Security and privacy are the top motivations for moving according to Knight Frank’s European Relocation Survey, with older generations prioritising tax benefits and younger buyers valuing education and employment opportunities.

Recent policy changes have further boosted Italy’s appeal: a reduced 2% registration tax for primary residences incentivises relocation, while citizenship is now limited to those with Italian ancestry, preserving passport value. Plus, Italy’s “Return of the Brains” programme offers a 70% income tax exemption for skilled foreigners.

Despite doubling the annual levy to €200,000, Italy’s flat tax regime remains highly competitive, demonstrating the government’s strong commitment to attracting overseas investment amid global economic uncertainty and rising taxes elsewhere.

Diverse Investment Opportunities

Italy offers investors a wealth of opportunities, with strong rental demand in both iconic cities and tourist hotspots. Rome, Milan, and Florence remain top choices for long and short-term lets.

In 2024, Italy welcomed approximately 65 million international visitors, setting a new record and surpassing pre-pandemic levels according to the UN World Tourism Organisation. The rental market is tightening, with demand outpacing supply and rents rising, especially in urban centres. Investors can also benefit from Italy’s Superbonus initiative, offering up to 65% tax deductions for energy-efficient upgrades, boosting both property value and sustainability. Major regeneration projects, such as Milan’s Scalo di Porta Romana, linked to the Milan-Cortina 2026 Winter Olympics, are transforming cityscapes and creating fresh investment opportunities.