What is the average house price in Italy?

Authored by the expert who managed and guided the team behind the Italy Property Pack

Everything you need to know before buying real estate is included in our Italy Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Italy, Spain, Portugal, France, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Italy. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Italian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Milan, Rome, and Florence. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the average house prices in Italy by region and city?

Northern Italy dominates the expensive end of the Italian property market, with Milan leading at €4,986-€5,400 per square meter as of June 2025.

The most expensive Italian cities are concentrated in the north, with Bolzano at €4,598 per sqm, Venice at €4,562 per sqm, and Florence at €4,331-€4,365 per sqm. Bologna rounds out the northern premium cities at €3,450-€3,566 per sqm.

Central Italy offers more moderate pricing, with Rome ranging from €3,019-€3,124 per sqm. This makes the Italian capital significantly more affordable than Milan while still commanding premium prices compared to southern regions.

Southern Italy and the islands provide the most affordable options. Naples sits at €2,712 per sqm, while Palermo offers excellent value at €1,341 per sqm. The most budget-friendly options include Perugia at €1,299 per sqm, L'Aquila at €1,451 per sqm, and Caltanissetta in Sicily at just €724 per sqm.

It's something we develop in our Italy property pack.

How do prices differ between apartments, villas, farmhouses, and new vs old properties?

Apartments in city centers command the highest prices per square meter, especially in Milan, Florence, and Venice where prime locations drive premium valuations.

Villas and farmhouses in rural areas, particularly in Tuscany and southern regions, offer significantly lower entry prices but often require substantial renovation investments. A rustic Tuscan farmhouse can be purchased for €89,000, while a fully renovated luxury villa in the same region may cost €295,000.

New or recently renovated properties command premium prices across all categories, especially those with energy-efficient features and modern amenities. The price differential between new and old properties can range from 20-40%, depending on the location and condition.

Older properties requiring renovation present the greatest value opportunities but require additional investment of €500-€2,000 per square meter for basic to high-end renovation work. Properties over 50 years old without recent updates typically sell at 30-50% below comparable renovated units.

What's the price per square meter in major cities like Rome, Milan, Florence, Naples, and Palermo?

City	Price per sqm (€)	Year-over-Year Change
Milan	4,986-5,400	Stable growth
Florence	4,331-4,365	+6.1%
Venice	4,562	+2.1%
Rome	3,019-3,124	+3.4%
Naples	2,712	-3.9%
Palermo	1,341	-2.2%

What's the total cost of buying including notary fees, taxes, agency costs, and renovation if needed?

The total cost of purchasing property in Italy extends well beyond the listed price, with additional fees typically adding 15-25% to your investment.

Notary fees range from 1-2.5% of the property value, translating to €2,000 for a €200,000 property or €7,500 for a €500,000 purchase. These fees cover legal documentation and property registration.

Tax obligations vary significantly based on residency status and property use. Primary residences incur a 2% registration tax for properties under €92,000, while second homes face a 9% registration tax plus 2% VAT for new constructions.

Agency fees typically consume 3-5% of the purchase price, while renovation costs for older properties can range from €500-€2,000 per square meter depending on the scope of work required.

For a €300,000 apartment in Milan as a primary residence, expect total costs of €318,000-€382,500 excluding renovation, including €3,000-€7,500 in notary fees, €9,000-€15,000 in agency fees, and €6,000 in registration taxes.

How much can I typically borrow from an Italian bank and what are the average mortgage rates and terms?

Italian banks typically offer loan-to-value ratios of 80-90% for residents and 50-60% for non-residents as of June 2025.

Current mortgage interest rates average 2.79% as of March 2025, representing relatively affordable financing conditions for property purchases. Rates can vary based on loan term, borrower profile, and bank relationship.

Mortgage terms typically range from 5-30 years, with 15-20 year terms being most common. Banks require that monthly mortgage payments not exceed 30% of your documented income, creating a practical borrowing limit based on your financial capacity.

Non-resident borrowers face stricter requirements, including higher down payments and more extensive documentation of income sources. Some banks specialize in foreign buyer financing and may offer more favorable terms for international clients.

If I want to live there full-time, what areas offer the best value and quality of life today?

Southern Italy regions including Puglia, Sicily, and Calabria offer the best value proposition, with property prices 70-80% lower than northern cities while maintaining excellent Mediterranean lifestyle quality.

1. **Milan** provides the best combination of work opportunities, international amenities, and modern infrastructure, making it ideal for career-focused expats despite higher costs.2. **Florence, Turin, and Rome** excel in cultural richness, historical significance, and livability while offering more moderate pricing than Milan.3. **Tuscany's Chianti region, Lake Como, and Bolzano** deliver peaceful, scenic lifestyles with strong expat communities and excellent quality of life.4. **Southern Italian coastal towns** in Puglia and Sicily provide affordable living costs, year-round sunshine, and authentic Italian culture with growing international communities.5. **Mid-sized cities like Bologna and Verona** balance affordability with excellent amenities, universities, and transportation connections.

What are the smartest choices if I plan to rent the property short term, long term, or resell it later?

Short-term rental success depends heavily on tourist appeal, with Venice, the Amalfi Coast, and Lake Como generating yields up to 8.3% annually.

Milan, Rome, and Florence provide consistent demand for both short-term and long-term rentals while offering strong potential for capital appreciation. These markets benefit from steady business travel, tourism, and local rental demand.

Long-term rental investments perform best in university cities and business centers where stable tenant demand supports consistent cash flow. Northern Italian cities typically command higher rents but also require higher initial investments.

For resale potential, focus on properties in established neighborhoods of major cities or unique locations with limited supply. Renovated properties in historic centers tend to appreciate faster than suburban developments.

Southern Italy offers lower entry costs with good rental yield potential as these markets develop, making them attractive for long-term appreciation strategies.

What are the current prices in the most expensive, up-and-coming, and budget-friendly zones?

The most expensive zones remain concentrated in Northern Italy, with Milan, Bolzano, Venice, and Florence leading premium valuations above €4,300 per square meter.

Up-and-coming regions include Veneto and Trentino-South Tyrol, which are experiencing growth driven by the 2026 Winter Olympics infrastructure investments. Puglia and Sicily are emerging as attractive alternatives for both investors and lifestyle buyers seeking authentic Italian experiences at affordable prices.

Budget-friendly zones offer exceptional value in southern cities including Campobasso, Pescara, Potenza, and various Sicilian locations like Caltanissetta and Bari. These areas provide property prices 60-80% below northern Italian levels.

Coastal areas in Calabria and inland Sicilian towns present some of Europe's most affordable property prices while still offering authentic Italian lifestyle and culture.

It's something we develop in our Italy property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How have house prices changed in Italy over the past 5 years and past 12 months?

Italian property prices have increased by 16% since 2019, with certain cities experiencing dramatic growth of 39-50%, particularly Trieste and Milan.

The past 12 months have shown regional variations in price movements. Northern Italy has led growth with Northwest regions up 8% and Northeast regions gaining 7.2%. Central Italy has shown more modest growth at 1%, while Southern Italy increased 2.9% and the islands gained 2.5%.

Q1 2025 data indicates continued price appreciation across most markets, driven by strong demand and limited housing supply. Foreign investment has contributed significantly to price pressures in premium markets.

Cities like Florence have shown particularly strong performance with 6.1% year-over-year growth, while some southern markets like Naples and Palermo have experienced slight declines of 2-4%, creating buying opportunities.

What's the forecast for the Italian property market in 1 year, 5 years, and 10 years from now?

The next 12 months are expected to show continued price growth, particularly in major cities and established tourist destinations where demand consistently outpaces supply.

Five-year projections indicate moderate to strong growth driven by foreign investment flows and major infrastructure projects including high-speed rail expansion and 2026 Winter Olympics facilities. Northern Italy and tourist hotspots are likely to see the strongest appreciation.

Ten-year forecasts suggest steady growth in northern regions and tourist areas, with potential for southern regions to experience catch-up growth as digital nomad trends and remote work adoption increase demand for affordable coastal locations.

Demographic trends including Italy's aging population and urbanization patterns support long-term demand in major cities while creating opportunities in smaller towns seeking population growth.

Can you give a few example listings or typical purchase scenarios with prices and characteristics?

Property Type	Location	Price	Characteristics
Rustic Farmhouse	Tuscany	€89,000	Needs renovation, rural setting
Luxury Villa	Tuscany	€295,000	Renovated, modern amenities
Apartment (70 sqm)	Milan	€350,000-€378,000	City center, modern
Apartment (80 sqm)	Rome	€240,000-€250,000	Central location
Apartment (100 sqm)	Palermo	€134,100	Historic area, renovation potential

How do Italian property prices compare with similar cities in France, Spain, Portugal, or Greece?

Italian property prices offer competitive value compared to other Southern European markets, particularly when considering lifestyle and investment potential.

Paris commands much higher prices at €10,000-€15,000 per square meter, making Milan appear relatively affordable despite being Italy's most expensive city. Madrid and Barcelona prices of €3,500-€5,000 per square meter closely match Italian major cities.

Lisbon's €3,000-€4,500 per square meter range aligns with Rome and Florence pricing, while Athens at €2,000-€3,000 per square meter compares favorably with Naples and Palermo.

Italy's unique advantages include stronger rental yield potential in tourist areas, more diverse regional options, and established infrastructure compared to some competing markets. The country offers better value than France while remaining competitive with Spain and Portugal.

For budget-conscious buyers, southern Italian prices often undercut comparable Greek locations while offering superior infrastructure and accessibility to major European markets.

It's something we develop in our Italy property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Property Guide - Italy Price History
2. Idealista - Italian Property Price Changes 2025
3. CitizenX - Richest Cities in Italy
4. Kyero - Cheap Property Locations Italy
5. InvestRopa - Buying Property Italy Worth It
6. Dolce Living - Cost to Buy Italian Property
7. Italian Real Estate Lawyers - Minimum Costs
8. Expatica - Italy Mortgage Guide
9. The Global Economy - Italy Mortgage Rates
10. InvestRopa - Italy Real Estate Market