"The Wealth Report 2025" has been published — Knight Frank’s annual analysis offering an in-depth overview of the global property market. Drawing on data and insights from over 400 countries, the report explores key industry shifts, emerging trends, and places a particular focus on the luxury residential sector, while also considering the well being of those involved. Here's a closer look at the prime property markets to watch in Italy and beyond.
According to The Wealth Report 2025, luxury property prices continued to rise in 2024, driven by the gradual easing of interest rates worldwide over the past year. Prices increased by an average of 3.6%, up slightly from 3.3% in 2023.
Among the 100 locations tracked by Knight Frank’s Prime International Residential Index (PIRI 100), 77 markets recorded positive annual price growth. Asian and Middle Eastern cities led the rankings, with Seoul (+18.4%), Manila (+17.9%), and Dubai (+16.9%) taking the top three spots. Saudi Arabia also performed strongly, with Riyadh (+16%) and Jeddah (+9.6%) both ranking in the top six.
Spotlight on Italy: a resilient market for global wealth
Italy reaffirms its position as one of Europe’s most attractive destinations for high-net-worth individuals (HNWIs). The report reveals that 41,080 individuals in Italy hold wealth exceeding $10 million, accounting for 1.8% of the global ultra-wealthy population.
Luxury property market performance
The Italian luxury residential sector continues to show solid growth, with prime locations experiencing notable price increases in 2024:
- Portofino: +7.1% (16th globally)
- Lucca: +6.2% (20th)
- Florence: +5.2% (30th)
- Milan: +3.5% (50th)
- Lake Como: +1.8% (58th)
- Venice: +1.5% (61st)
- Rome: +0.9% (69th)
Milan’s position in the global prime market
Milan remains Italy’s financial and lifestyle hub for luxury real estate. Today, $1 million secures 52 square metres of prime residential space in the city — down from 54m2 in 2014, marking a 4% decline in purchasing power. Despite this, Milan remains competitively priced compared to other European capitals.
Luxury real estate in Europe
Luxury property prices in Europe grew by an average of 2.5% in 2024, signalling a return to normality after the turbulence of the pandemic. Supply has returned to 2019 levels, while the balance of power has gradually shifted from sellers to buyers, due to slowing demand, higher borrowing costs, and increased availability of properties.
Southern Europe’s strong showing — Italy among the leaders
Southern Europe has outperformed much of the continent, with Italy featuring prominently among the top-performing markets. Lucca stands out with a 6.2% annual rise, while other European destinations such as Corfu (+8.9%) and Porto (+6.8%) make their mark.
Eight of the ten fastest-growing European markets are in Italy, Spain, Portugal, and Greece, reflecting strong demand for lifestyle destinations rich in history, culture, and natural beauty.
The return of the cities
In contrast to global trends where resort destinations outperformed cities, European cities saw stronger growth of +2.7%, surpassing both sun destinations (-0.1%) and Alpine resorts (+2.2%) for the first time since 2020.
Super-prime property sales in Europe
Sales of super-prime properties (worth over $10 million) slowed, particularly in France and Switzerland, where many potential buyers opted to rent. One exception was Geneva, recording 57 super-prime sales by September 2024, up from 54 the previous year.
2025 outlook: Italy poised for steady growth
Looking ahead, Knight Frank expects Italy’s prime markets to remain resilient, supported by continued international demand, a strong domestic market, and competitive pricing compared to other European luxury hubs.
Key Italian highlights for 2025
Italy’s prime property markets are set for continued growth, with strong momentum in Tuscany and Liguria. Demand remains stable in Milan and Rome, driven by their enduring lifestyle appeal, while interest in Lake Como, Venice, and other heritage cities continues to grow. Italy’s favourable tax regime also remains a key draw for international buyers seeking both investment potential and quality of life.
Global highlights: how other markets compare
- Europe: +2.5% average growth, with cities regaining strength
- Middle East: Dubai dominates, +16.9% and projected +20%
- Asia-Pacific: +3.2%, led by Seoul and Tokyo
- US: Mixed growth; New York poised for a 2025 recovery
- Super-prime sales: Strong activity in Dubai and Geneva; softer in France and Switzerland
Rare 17th-century villa for sale in the heart of Tuscany
Nestled in the rolling hills just a few kilometres from Lucca, this majestic noble residence dating back to the 1600s offers an exceptional opportunity to own a piece of Tuscan history. Surrounded by 65 hectares of land and framed by sweeping views that reach the towers of Lucca, the property embodies the perfect blend of heritage, privacy and understated luxury.
From fashion to fortune: Italy's flat tax lures international buyers to Milan
Milan is rapidly becoming one of Europe’s hottest destinations for wealthy investors and international buyers. Once known primarily as Italy’s fashion and financial capital, the city is now attracting a new wave of millionaires and entrepreneurs thanks to a favourable tax regime, quality of life, and booming real estate opportunities.
The pinnacle of Italian real estate: Italy’s ten most expensive properties
From historic castles to stunning Tuscan villas, Italy continues to captivate with its extraordinary real estate. idealista, Italy’s leading property portal renowned for technological innovation, has unveiled the ten most luxurious and expensive homes currently available on the market.
Naples’ most exclusive neighbourhoods: where to find luxury homes
Naples is a city of contrasts: historic streets and modern elegance, vibrant urban life and serene seafront vistas. For international buyers seeking luxury property in Italy, Naples offers an unmatched combination of culture, history, and lifestyle, with some of the most prestigious addresses in the country. From hilltop villas to elegant seafront apartments, the city’s luxury real estate market caters to those who value privacy, sophistication, and panoramic views.
Exclusive seafront apartment in the iconic Sem Benelli Castle, Zoagli
Perched on the Ligurian coastline between Portofino and Sestri Levante, this extraordinary residence offers a rare opportunity to own part of the iconic Sem Benelli Castle – a masterpiece of early 20th-century architecture and a property of recognised cultural interest.
It looks like a museum, but it’s a school — discover one of the most stunning buildings in Corsica
Corsica, one of the largest Mediterranean islands and located just a short distance from the Italian coast, is a true natural sanctuary. Its traditional architecture blends effortlessly with the landscape, using local materials and adapting to the natural slopes and contours of the land.
Portofino tops Italy’s luxury seaside property market at over €15,000/m²
The Mediterranean has long been synonymous with luxury, beauty and lifestyle – and its property market reflects just that. With crystal-clear waters, stunning coastal landscapes and historic charm, the region continues to attract affluent buyers looking for the ultimate home or holiday retreat.