Italian real estate market: what to expect this year?

For many people, investing in property represents the best way to safeguard their capital and to secure, also with retirement in mind, a place where they can spend time relaxing, perhaps surrounded by breathtaking landscapes and outstanding cultural heritage.

Looking at Italy is an excellent idea, as it fully meets these criteria: those who choose to buy a house in Italy know well that this is an investment with strong chances of proving profitable.

Always keeping in mind basic common-sense rules, such as choosing reliable sources for listings, like specialized property portals, approaching real estate investments in Italy means, in the residential sector, securing an almost guaranteed return: the charm of the Bel Paese never fades, regardless of the location where one buys.

Attention: this does not mean that one can choose at random, without first informing themselves about the state of the market. What are the forecasts for this newly started 2026?

Analysts expect a good level of dynamism. Although it is not yet possible to speak of a return to pre-Covid figures, the number of transactions, especially following the recovery seen in 2025, is set to remain interesting.

A phenomenon that is expected to become increasingly evident is the lengthening of selling times for properties requiring renovation and energy upgrading (the latter aspect is also central in view of the approaching EPBD deadlines, the directive aiming at the complete decarbonization of EU buildings by 2050).

What to know about prices

According to forecasts from the observatory of one of Italy’s leading property listing websites, by the end of 2026 prices should show growth of around 3.1% compared to current figures.

Much more moderate are the outlooks of experts who compile data for the Nomisma Observatory, one of the main institutional and official sources when it comes to real estate in Italy.

In this case, forecasts point to soft growth, highlighting strong differences between the various areas of the country.

In urban contexts where structural demand is high, cities with major universities and numerous job opportunities, forecasts suggest that property values will hold up.

In suburban areas, which, despite seeing a clear increase in interest from prospective buyers, suffer from issues such as often outdated housing stock, much depends on the condition of the individual property.

The cities with the strongest increases

Even without 2026 data in hand, to understand how house prices might evolve it is useful to look at the 2025 figures, which already say a great deal.

It is interesting to note the presence of Florence among the cities where house prices rose the most last year (+7.8%, the same level as Verona).

Second place in terms of property value growth goes to Rome, a context where real estate investments have grown significantly in recent years, driven by the 2025 Jubilee and the extraordinary Jubilee scheduled for 2033.

The 2.1% recorded by Milan may come as a surprise; however, with an average of €5,590 per square meter updated to December 2025, it remains the most expensive city in which to buy a home (this figure is the highest of the last two years).

Areas to focus on

Beyond the importance of personalization and a focus on each buyer’s needs, there are areas in Italy that are more advantageous than others for those seeking a profitable real estate investment.

First place goes to Rome, whose tourist appeal is unmatched. Milan is also an excellent alternative, especially because of its status as an international reference point for sectors such as fashion and design, with the possibility of renting properties at high prices during major events.

Another evergreen destination is Lake Como, whose scenic beauty, combined with a glamorous atmosphere, has continued to shine for decades.