Italy's real estate market has undergone significant transformations over the past decade, adapting to economic shifts, changing buyer preferences, and evolving regulatory landscapes. Understanding these changes is crucial for investors and homeowners alike.

1. Steady Price Growth with Regional Variations

Over the last ten years, Italy has experienced modest yet steady growth in property prices. According to Abitare Co, house prices have risen by 8.8% since 2010, positioning Italy among the EU countries with the lowest price increases during this period .

• Milan: The average price per square meter in central Milan surpassed €8,000 in 2024, continuing its upward trend .
• Rome: The average price per square meter in Rome is approximately €3,800, reflecting a more affordable market compared to Milan .
• Coastal Regions: Residential properties in Italy's coastal regions saw price increases of up to 8% in 2024, driven by lifestyle preferences .

2. Increased Foreign Investment

Italy has become an attractive destination for international buyers. In 2024, over 12% of residential property sales involved international buyers, a trend expected to rise in 2025 . Foreign interest is particularly strong in northern regions, which account for 77% of all property transactions .

3. Shift Towards Energy-Efficient Homes

Sustainability has become a key factor in the Italian property market. By 2025, demand for eco-friendly, energy-efficient homes is expected to increase by 20% . Homes with high energy efficiency sell 20% faster than those without green certifications . Additionally, over 70% of Italian homes are expected to have energy performance certificates by 2025, reflecting stricter regulations and a growing emphasis on sustainability .

4. Evolving Financing Options

Mortgage accessibility has improved, with 55% of homes in Italy being bought with mortgages in 2024, thanks to low interest rates . From January to April 2024, there was a 17% increase in mortgage requests compared to the same months in 2023, indicating a growing confidence among buyers .

5. Urban Development and Infrastructure Investments

Major cities like Milan and Rome have seen significant investments in infrastructure and urban development. Milan's construction boom, driven by investments exceeding $30 billion since 2015, faced challenges due to legal investigations into possible abuses in the fast-tracking of building permits . In contrast, Rome's underdeveloped real estate sector has attracted increased investment, with professional property investors doubling their investments to €1.7 billion in 2024, driven by public spending on infrastructure and a more investor-friendly local administration