The Italy real estate market trends in 2025 present a nuanced landscape: some regions experience strong price appreciation, while others remain stable or slightly decline.
According to Idealista, property prices in Italy 2025 increased by approximately 2.2% year-on-year in 2024, with a slight correction observed at the beginning of 2025, reflecting global uncertainties and regional differences.
As of early 2025, the average price per square meter in Italy stands around €1,800, though this national figure hides significant house prices by region Italy disparities.
Northern Italy Property Prices: Growth Trends and Investment Hotspots in 2025
Northern Italy property prices continue to lead the national market. According to Idealista, in Trentino-Alto Adige, prices rose by about 7% in 2024, reaching €3,285 per square meter, making it an attractive destination for real estate investment in Trentino and sustainable property investment Italy seekers.
The Milan property market 2025 also maintained strong performance, with about a 5% annual increase, securing Milan’s status as one of the best Italian cities for real estate investments.
Regions like Veneto and Emilia-Romagna posted annual growth between 5–7%, fuelled by economic stability, strong tourism, and strategic business hubs.
Beyond price growth, Northern Italy’s appeal lies in its resilient economic fundamentals. Major cities benefit from world-class infrastructure, efficient public administration, and superior healthcare and education systems — key factors that support real estate value over the long term.
Secondary cities such as Verona, Bologna, and Padua are increasingly regarded as top places to buy a home in Italy, offering a blend of affordability, culture, and investment potential.
Their strategic locations between larger cities also make them popular choices for commuters and digital nomads, boosting demand across rental and sales markets.
Affordable Homes in Southern Italy and Stable Markets in Central Regions
The central and southern parts of Italy have experienced much milder price dynamics compared to the north.
Based on recent regional real estate data, Lazio (home to Rome) and Tuscany posted around 0–1% growth in 2024, indicating relative price stability, while Basilicata recorded a slight drop (~–1%), and Sicily and Campania remained modestly positive.
This stability presents a unique opportunity: buyers seeking affordable homes in Southern Italy can benefit from favourable purchase prices, greater negotiation leverage, and lower entry barriers.
In Sicily, for example, the average price per square meter stands at approximately €1,100 — a remarkable discount compared to Northern regions.
Markets like Molise and Abruzzo also stand out for their combination of low prices and increasing tourism. With new incentives for rural tourism and remote working programs, even traditionally overlooked regions are gaining renewed attention from both local and foreign buyers.
For investors, these southern opportunities offer the chance to secure properties before broader market recognition pushes prices higher in the coming years.
Best Italian Cities for Real Estate: Milan, Rome, and Urban Market Insights 2025
Premium city markets, especially Milan and Rome, continue to show resilience and liquidity.
The Rome real estate forecast for 2025 remains positive, with average prices reaching approximately €3,000 per square meter.
The rental market Italy 2025 is particularly strong in these urban centres, driven by international students, tourism, corporate relocations, and a dynamic startup ecosystem.
Despite high acquisition costs, Milan, Rome, Venice, and Bolzano attract investors with consistent rental demand, stable occupancy rates, and robust tenant profiles.
Short-term rentals (especially in Milan and Florence) have also seen a recovery post-pandemic, contributing to attractive rental yields in tourist-heavy neighbourhoods.
Urban hubs benefit not only from economic strength but also from future-proof sectors like tech innovation, green economy initiatives, and international education enters — ensuring sustained demand for both sales and rentals.
Regional House Prices in Italy (2024)
<table> <tbody> <tr class="blue-row" > <td><strong>Region</strong></td> <td><strong>Avg. Price (€/m²) 2024</strong></td> <td><strong>YoY Change</strong></td> </tr> <tr> <td>Trentino-Alto Adige</td> <td>€3,200</td> <td>+7%</td> </tr> <tr> <td>Lombardy</td> <td>€2,500</td> <td>+5%</td> </tr> <tr> <td>Veneto</td> <td>€1,900</td> <td>+7%</td> </tr> <tr> <td>Emilia-Romagna</td> <td>€2,000</td> <td>+5%</td> </tr> <tr> <td>Lazio (Region)</td> <td>€2,400</td> <td>~0%</td> </tr> <tr> <td>Sicily</td> <td>€1,100</td> <td>+1%</td> </tr> <tr> <td>Basilicata</td> <td>€1,100</td> <td>–1%</td> </tr> <tr> <td>Molise</td> <td>€1,000</td> <td>+4%</td> </tr> </tbody> </table>Sources: Idealista and IAD Overseas (2024)
Where to Buy Property in Italy: Real Estate Investment Opportunities in 2025
Top Places to Buy a Home in Italy’s South: Bargains and ROI Potential
Regions like Abruzzo, Calabria, and Molise offer some of the most affordable real estate opportunities in Europe.
With average prices often below €1,000 per square meter, and various rural towns promoting "€1 Homes" schemes, buyers can secure historic properties at incredible value.
For investors ready to renovate, the upside potential is significant — particularly as Italy’s government continues to promote tourism and rural revitalisation programs.
A strategic buy-and-hold approach in these areas can deliver strong real estate ROI Italy over the medium to long term, especially if local tourism initiatives succeed.
Key City Price Updates (Early 2025)
<table> <tbody> <tr class="blue-row" > <td><strong>City</strong></td> <td><strong>Avg. Price (€/m²) Early 2025</strong></td> </tr> <tr> <td>Milan</td> <td>€5,400</td> </tr> <tr> <td>Rome</td> <td>€3,100</td> </tr> <tr> <td>Florence</td> <td>€4,365</td> </tr> <tr> <td>Bologna</td> <td>€3,566</td> </tr> </tbody> </table>Source: Idealista (early 2025 market data)
Real Estate Investment in Trentino and Other Northern Growth Cities
Northern secondary cities are no longer “alternative” options — they are fast becoming preferred destinations.
Cities like Verona, Bologna, and Turin offer dynamic job markets, high quality of life, and steadily rising property values.
According to Investropa, gross Italy property yield 2025 in secondary cities can reach 5–6%, making them more profitable than premium markets like Milan and Rome.
Moreover, cities like Verona combine tourism appeal with livability, attracting both domestic buyers and foreign investors.
Buying Property in Italy as a Foreigner: Expats and Global Buyer Trends
Foreign buyers made up over 12% of total real estate transactions in 2024, according to Investropa.
Northern Italy attracts the majority, but there’s growing interest in emerging lifestyle destinations such as Puglia, Umbria, and even parts of Calabria and Abruzzo.
Expats are increasingly looking for homes with access to fast internet, quality healthcare, international schools, and good transport links — all critical factors shaping today’s Italian real estate for expats market.
Italy Real Estate Market Trends 2025: Stability, Mortgages, and Renovation Incentives
Italy’s property market enters 2025 in a relatively stable condition: moderate price growth, accessible mortgage financing, and strong rental demand.
After rising sharply in 2022–2023, mortgage rates have stabilised, making home ownership and investment more feasible for both locals and foreigners.
Government-backed eco-bonus schemes for energy-efficient renovations remain available in 2025, offering additional value for buyers planning to refurbish older properties.
The rental market Italy 2025 also benefits from ongoing demand in university cities like Florence, Bologna, and Padua, where both student housing and short-term rentals continue to outperform expectations.
Real Estate ROI Italy: A Diverse Market for Every Strategy in 2025
Italy’s 2025 real estate market offers strategic opportunities for every type of buyer:
You can focus on high-value growth opportunities in the North, explore affordable entry points in the South, or tap into the thriving urban rental market Italy 2025 — Italy offers regions and strategies to suit every investment goal.
Cultural heritage, lifestyle appeal, improving infrastructure, and increasing transparency make Italy one of Europe’s most compelling property markets today.
Visit our Countries section to explore detailed real estate market guides for Italy and beyond. Discover Italy’s property prices, rental yields, investment hotspots, legal insights, and expert strategies for buying property as a foreigner.
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