Rome is cementing its position among Europe’s top luxury residential capitals. According to Savills’ latest report on the city’s prime market, despite ongoing global economic uncertainties, Rome’s luxury property sector is outperforming the national average, showing resilient and steady growth fuelled by high-quality demand and a structurally tight supply.
Market normalisation at high levels
Preliminary figures for the first nine months of 2025 show Rome posting its third-best transaction volumes since 2011, surpassed only by the record years of 2021 and 2022. Activity remains 12% above the ten-year average, signalling a “high” normalisation following the post-pandemic boom.
In 2024, annual growth reached +2%, with prices up +7% versus 2019, placing Rome among Italy’s most robust cities. Prime values mirror this trend, rising steadily without overheating: in H1 2025, prime prices hit €14,990/sqm, up +2.5% year-on-year and +12% compared with 2019.
Limited stock and fast sales
Rome’s prime market is a balanced seller’s market, shaped by three key factors:
- a shortage of genuinely high-quality properties,
- rapid absorption of new stock (short average sale times),
- steady, non-speculative price growth.
Over the past decade, the metropolitan area’s estimated demand of 63,000 new homes has been met only partially by new construction. This structural gap is even wider in the luxury segment, where new supply is scarce and often tied to redevelopment or change-of-use projects.
Luxury segment over €1 million surges
Properties over €1 million highlight the strength of Rome’s prime sector. In 2024, 350 transactions exceeded this threshold (+36% on 2023). The ultra-prime market, for homes over €5 million, jumped +167% year-on-year, confirming its counter-cyclical nature.
H1 2025 reinforced the trend: sales above €1 million rose +45% versus H1 2024, reflecting selective, active demand that values location, quality, and long-term investment over short-term market swings.
Rentals: rents outpace prices
Prime rentals continue to grow. Average rents rose +2.6% year-on-year, with prime rents around €41/m2/month (+3%). Since 2020, rents have surged +29%, outstripping sales growth.
A 60 sqm prime apartment in the Historic Centre commands around €2,450 per month, keeping Rome competitive with other major European capitals. Demand remains strong from students, young professionals, and international residents, while supply of high-quality units struggles to keep pace.
European appeal and affordability
Rome’s relative affordability remains a key attraction. Among 17 major European cities, purchasing a two-bedroom apartment outside the centre requires 4.1 years of household income—compared with 6.5 in Paris and 6.6 in Amsterdam. Rental affordability stands at 17%, below the European average of 19%, and more favourable than London, Madrid, or Milan.
This makes Rome appealing to international buyers and mobile families, especially at a time when lifestyle, services, and urban context matter as much as financial returns.
Key districts and regeneration
Prime areas remain the Historic Centre, Prati–Trionfale, Parioli–Flaminio, and EUR, alongside emerging districts like Ostiense–Navigatori, Tiburtina, and San Lorenzo. Infrastructure projects linked to the Jubilee and PNRR—from Metro Line C to new tram links—are already shaping perceptions and medium-to-long-term value across the city.
Outlook: selective growth into 2026
Looking ahead, the outlook remains positive. Demand for prime homes is expected to stay stable, supported by limited supply and high-quality developments that set new benchmarks. In the rental market, pressure will continue, driving a clear shift towards efficient, well-located properties with integrated amenities.
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