RU
DE
FR
ES
PT
AR
In 2025, the Italian housing market continues to undergo significant transformations. The following key trends deserve particular attention:
1. Declining Demand for Mid-Range Homes
A recent 10% drop in transaction volume in 2023 has shown that buyers are opting for either premium or budget real estate options. In major cities such as Milan and Florence, prices for mid-range housing have declined, while the luxury real estate market has been growing since 2019. Wealthy investors continue to acquire high-end properties, whereas budget-conscious buyers seek affordable options in less popular regions of the country.
2. New Tax Rules Stimulate Investment
A reduction in the registration tax to 2% of the cadastral value for primary residences and a fixed tax rate for foreign buyers have made Italy one of the most attractive markets in Europe. Additional tax benefits for affluent residents also create favorable conditions for long-term investment.
3. Decreasing Demand for Rentals in Major Cities
The number of property owners is increasing, leading to a decline in rental demand. In 2023, the homeownership rate reached a record 75.2%, and lower mortgage rates in 2024 have made home purchases even more accessible. As a result, rental yields in major cities such as Rome and Milan have already begun to decline.
4. Stricter Regulations on Short-Term Rentals
In popular tourist regions like Venice and Florence, authorities have introduced stricter regulations on short-term rentals. New rules and fines have led to a decrease in the number of available listings, reducing investment profitability in this segment. Many property owners are shifting to medium-term rentals to maintain profitability.
5. Growing Interest in Energy-Efficient Homes
Foreign buyers are increasingly opting for environmentally friendly and energy-efficient properties. The Italian government continues to support green projects through programs such as Superbonus 110%, Bonus Ristrutturazioni, and Ecobonus. This is driving demand for homes with green certifications and energy-efficient solutions.
These trends are shaping a new reality for Italy’s real estate market, presenting both risks and new opportunities for buyers and investors.
Comments