Join the luau at Renfrew Gala Day
May 20, 2025Restoring a Historic Paisley Home: Budget-Smart Tips for Preserving Character
May 22, 2025Considering the purchase of a home in Italy means taking a step that can change your life. In recent years, the real estate market in the Bel Paese has gone through complex times, especially due to inflation and the resulting decision by the ECB to raise mortgage rates.
However, there is one sector that remains immune to these issues: the luxury real estate market.
Characterized by remarkable dynamism, it is facing 2025 with an average increase in prices. Also noteworthy is the growing interest in urban centers such as Milan, Rome, Venice and Florence.
These data were provided by the experts who compiled the report from the Engel & Völkers network, a project that also involved Nomisma.
Presented last March in Rome, the report revealed that in 2024, about 50% of real estate transactions in the luxury sector in the northern regions were made with the purpose of buying a primary residence.
Only 15%, on the other hand, were primarily driven by investment purposes.
In the central regions, prospective buyers entering the luxury market are doing so with the aim of acquiring a second home.
When looking at the southern part of the country, however, significant numbers related to investments emerge—around 28% of luxury transactions last year were for investment purposes.
Another interesting figure regarding the South and the islands is the presence of two regions from this area in the top ten most requested locations by foreigners searching for luxury properties.
Sardinia ranks fourth after Tuscany, Lazio and Lombardy. Sicily, on the other hand, comes in sixth, representing a uniquely attractive hub that combines natural beauty, culture and fine cuisine.
When it comes to luxury real estate in Italy, particularly from the perspective of foreign buyers, it is important to remember that Italy is not only about Milan.
Just to give an example, the Polish market is increasingly searching for houses for sale in Sicily Italy, focusing on a land that, as previously mentioned, offers a wide appeal for investors—from art cities to small islands that seem like slices of paradise.
The data from Milan and Rome
Milan and Rome remain the two leading cities when it comes to the luxury real estate market in Italy.
Regarding the Lombard capital, the most sought-after neighborhoods include Brera, an area known as the little Paris of Milan and the fashion district, with Via Montenapoleone making headlines for years due to unmatched rental prices in Europe.
In these two areas, newly renovated luxury homes can reach astronomical prices, around €22,000 per square meter.
Such an investment—taking Brera as a concrete example—can yield a return in a short time thanks to events like the Salone Internazionale del Mobile, during which short-term rentals can fetch €4,000–€6,000 per square meter.
As for Rome, there is a notable increase in interest—particularly from foreign investors—towards luxury properties in the historic center and surrounding areas such as Prati, Pinciano, Eur and Parioli.
In terms of prices, values per square meter are significantly lower than in Milan—around €10,000 for renovated high-end properties, which tend to have a very short time on the market.