The European property market in 2025 paints a picture of a continent moving at two different speeds. In some countries, housing shortages are driving prices sharply upwards. In others, including Italy, the situation is more balanced, with a wider supply of homes and more moderate growth in values.
This is the scenario outlined in the report Housing Insider – European Real Estate Insights 2025, published by REMAX Europe, which examines residential trends across the main European markets.
Italy, therefore, is one of the most affordable places to buy property in Europe.
Italy goes against the grain: more homes available than elsewhere in Europe
One of the key factors setting Italy apart from other large European markets is the availability of homes for sale. In 2025, around 850,000 properties were on the market, equal to 14 homes for every 1,000 inhabitants.
The contrast with Germany is striking. There, limited supply has significantly reduced buying opportunities, with only 3 properties available per 1,000 residents.
This relatively high level of supply makes the Italian market less aggressive and less competitive than many others in Europe. Buyers have more room to assess their options, looking beyond price alone and paying closer attention to aspects such as energy efficiency, the condition of the property, and the overall quality of life.
According to Dario Castiglia, CEO and founder of REMAX Italia, buyer preferences are undergoing a clear shift. Demand is increasingly focused on renovated, sustainable and energy-efficient homes. This reflects a broader cultural change within the European property sector, where sustainability now carries as much weight as location.
House prices: Italy is rising, but without Europe’s extremes
Price trends across Europe reveal even sharper differences. In Italy, property values are continuing to rise, though at a measured pace. In 2025, the average increase stood at 2.7%, with apartments seeing a slightly stronger rise of 3.4%.
This remains modest compared with other European markets, where limited new construction and strong demand have pushed prices up more significantly.
- Portugal provides the clearest example, with house prices rising by 17% in a single year and apartment prices climbing by as much as 20%.
- Spain also maintained strong momentum, recording average growth of 10% and peaks of 15% in major cities and highly sought-after areas.
- After a period of slowdown, Germany returned to growth with a 4% increase.
- Turkey, by contrast, was the only major negative outlier, posting a 9% contraction in its real estate market.
International interest grows: one in five homes sold to foreign buyers
In 2025, Italy also experienced a notable rise in foreign investment. According to the report, 20% of completed property transactions involved international buyers, almost double the 11% recorded in 2024.
This confirms Italy’s growing appeal on the global property stage. The country is viewed as combining relative stability, solid real estate assets and tax advantages that remain competitive in comparison with other European destinations.
Foreign demand is no longer limited to major cities such as Rome and Milan. Interest is spreading to prestigious tourist destinations, coastal regions and historic villages with strong landscape and cultural value.
Italy is now competing directly with Spain as a preferred destination for high-net-worth international buyers, drawn not only by real estate prospects but also by the country’s quality of life and cultural heritage.
Rising rents: increasing pressure on the rental market
While the sales market appears comparatively balanced, the rental sector is under growing strain.
Rents rose across most of Europe in 2025, with Italy and Spain among the countries experiencing the sharpest increases.
- In Italy, average rents climbed by 7%, while Spain recorded the highest rise in Europe at 9%.
- Portugal also saw continued upward pressure, with rents increasing by 6%.
- In Germany, growth was more contained at 2%, largely due to stricter regulation and a market that has already reached particularly challenging levels of affordability.
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