The prime real estate market in Italy continues to grow. Demand remains steady, investment activity is rising, and interest from abroad is strengthening. On average, international buyers account for 35% of the market.
These figures come from the second edition of the “Market Report Italia” by Engel & Völkers Italia, produced with the scientific support of Nomisma. Presenting the report, CEO Muhannad Al Salhi highlighted Italy’s competitive position compared to other European markets, pointing in particular to the country’s quality of life and ongoing infrastructure improvements.
Market activity and sales volumes
The report outlines recent trends in the Italian residential market, noting renewed growth from the end of 2025. The recovery that began in the third quarter of 2024 continued throughout 2025, gaining momentum in the first half of the year when transactions rose by +9.3%. Activity then stabilised, bringing overall annual growth to +6.3%.
According to Nomisma’s forecasts (December 2025), transactions are expected to reach 785,000 by the end of the 2026–2028 period, close to the levels recorded in 2022 during the post-pandemic rebound.
Price growth and real-term outlook
Prices increased by +1.3% for properties in excellent condition and +1.9% for those in good condition. Although still positive, this marks a slowdown compared to 2022–2023.
The report also notes that slower nominal growth will not offset rising inflation. As a result, house prices are expected to decline in real terms, with the contraction likely to widen over the next three years.
How buyers are shaping Italy’s prime market
Primary homes in the North, second homes in the Centre, investors in the South
- In 2025, the main patterns seen the previous year were confirmed. In the North, primary residences accounted for around 50% of prime transactions.
- In Central Italy, second homes represented 42% of purchases, slightly ahead of primary residences (41%).
- In the South and Islands, investment purchases made up the largest share at 23%, while primary homes (40%) and second homes (37%) remained broadly stable.
The strong demand for second homes in Central Italy is closely linked to international buyers, who represent 52% of transactions in the area. Most come from the rest of Europe (59%) and North America. In contrast, domestic buyers remain dominant in the North (72%) and in the South and Islands (59%).
North-West: Milan peaks at €27,000 per m²
Milan records some of the highest prices in the country.
- In central districts, peak values reach €27,000 per m², while new or refurbished properties typically range between €10,000 and €23,000 per m².
- The city continues to attract Italian buyers, investors (20% of the total), and international purchasers seeking prime apartments and penthouses.
In the Aosta Valley, Courmayeur confirms its strength in the prime segment.
- Top prices of €20,000 per m² and average values between €15,000 and €18,000 per m², supported by its alpine setting and year-round appeal.
The Great Lakes in Lombardy remain established luxury destinations.
- On Lake Maggiore and Lake Orta, top transactions reach €8,400 per m², particularly for waterfront villas and penthouses, often purchased by international investors.
In Liguria, Santa Margherita Ligure and Portofino maintain their position at the top end of the market.
- In 2025, peak prices reached €25,000 per m², largely driven by demand for sea-view properties with terraces and high-quality finishes. Around 80% of purchases are second homes.
North-East: Cortina d’Ampezzo and Venice at the top
In Venice, properties in the historic centre reach €20,000 per m².
- The city attracts both domestic and international buyers, with investment and second-home purchases each accounting for 40%.
Cortina d’Ampezzo sees prices up to €24,000 per m².
- Alpine markets across Trentino-Alto Adige remain attractive in the premium segment.
In Bolzano and Bressanone, top prices reach €12,500 per m² and €13,000 per m², respectively.
- Tourist areas such as Brunico, Alta Badia and Alta Val Pusteria record peaks of €15,000 per m².
In Trento, average values range between €4,000 and €10,000 per m², with top prices of €19,000 per m².
On Lake Garda, including Bardolino and Peschiera del Garda, peak prices reach €10,000 per m², exceeding those of the North-West lakes.
Central Italy: Rome peaks at €12,000 per m²
In Tuscany, rural and coastal areas continue to attract second-home and tourism-driven investment, particularly for renovated properties with generous outdoor space.
- In the Tuscan Hills and Chianti, top prices reach €15,000 per m², while on Elba Island, values rise to €10,000 per m², with second homes accounting for 45% of purchases.
In Florence, demand remains selective but resilient.
- Foreign buyers represent 65% of transactions, focusing on central locations and modern standards. Top prices reach €10,000 per m².
In Siena, values climb to €13,000 per m², reflecting limited prime supply.
In Lazio, Rome shows a clear divide between prime and secondary stock. Peak prices reach €12,000 per m², with average values between €6,000 and €10,000 per m².
- Buyers tend to favour newly renovated properties, with particular attention to terraces, energy efficiency and parking.
Southern Italy and the Islands: Costa Smeralda peaks at €47,000 per m²
In the South and Islands, the prime market is strongly supported by international tourism.
In Sardinia, the Costa Smeralda, including Porto Cervo and Porto Rotondo, remains the highest-priced area in Italy.
- Villas, penthouses and waterfront properties reach up to €47,000 per m², with average values between €28,000 and €33,000 per m².
On the Amalfi Coast, Amalfi and Capri maintain their status as leading destinations.
- Prices reach €10,000 per m², with peaks of €12,000 per m² for sea-view villas and penthouses.
In Naples, buyers are predominantly Italian (85%) and typically purchasing a primary residence.
- Average prices range between €5,800 and €7,000 per m², with peaks of €10,000 per m².
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