Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Florence's property market is included in our pack
Wondering whether January 2026 is the right moment to buy property in Florence? You're not alone, and the answer depends on fresh data, not gut feelings.
In this article, we break down current housing prices in Florence, what's happening with rents, supply, and demand, and whether the market looks stretched or fairly valued.
We constantly update this blog post as new data comes in, so you always get the latest picture.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Florence.
So, is now a good time?
Rather yes: if you're buying for the long term (to live in or rent out), Florence in January 2026 offers a reasonable entry point, though prices are near their recent peak.
The strongest signal is that Florence property prices have plateaued around 4,500 euros per square meter instead of spiking higher, which means you're not buying into a frenzy.
Another strong signal is that rents keep rising (up about 5% year over year), which supports property values and makes buy-to-let math workable.
Other helpful signals include stable ECB interest rates entering 2026, limited new construction keeping supply tight, and diversified demand from locals, students, and lifestyle buyers.
The best strategy is to target well-located apartments in neighborhoods with everyday demand like Campo di Marte, Gavinana, or Rifredi, avoid overpaying for Centro Storico unless you're comfortable with short-term rental restrictions, and plan for a multi-year hold.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property decision.
Is it smart to buy now in Florence, or should I wait as of 2026?
Do real estate prices look too high in Florence as of 2026?
As of early 2026, Florence property prices sit at roughly 4,530 euros per square meter, which is high by Italian standards but not wildly disconnected from local rents and demand fundamentals.
One clear signal in Florence listings is that prices have flattened near their September 2025 peak of about 4,540 euros per square meter, suggesting sellers are no longer able to push prices higher month after month.
Another sign worth watching is that well-priced properties in strong neighborhoods like Campo di Marte or Le Cure still move quickly, while overpriced listings in weaker locations tend to sit, which points to a market that's selective rather than overheated across the board.
You can also read our latest update regarding the housing prices in Florence.
Does a property price drop look likely in Florence as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Florence over the next 12 months looks low, mainly because supply remains constrained and interest rates have stopped rising.
A plausible price change range for Florence over the coming year is somewhere between a small dip of around 3 to 5 percent on the downside and modest gains of 2 to 4 percent on the upside, with flat to slightly positive being the most likely outcome.
The single macro factor that would most increase the odds of a price drop in Florence is a sudden spike in mortgage rates, because higher borrowing costs directly shrink what buyers can afford and would cool demand quickly.
That said, this scenario looks unlikely for now since the ECB held rates steady in December 2025 and forward guidance suggests no aggressive tightening is planned for early 2026.
Finally, please note that we cover the price trends for next year in our pack about the property market in Florence.
Could property prices jump again in Florence as of 2026?
As of early 2026, the likelihood of a renewed price surge in Florence looks low to medium: prices could grind modestly higher, but a sharp jump is unlikely without a major demand shock.
If conditions align favorably, Florence property prices could realistically rise by 3 to 6 percent over the next 12 months, though double-digit gains would require something unusual like a dramatic rate cut or a surge in foreign investment.
The single biggest demand-side trigger that could push Florence prices higher is a meaningful drop in mortgage rates, because lower borrowing costs would immediately expand buyer purchasing power and bring sidelined buyers back into the market.
Please also note that we regularly publish and update real estate price forecasts for Florence here.
Are we in a buyer or a seller market in Florence as of 2026?
As of early 2026, Florence leans mildly toward a seller's market, but it's no longer the frenzied environment of peak demand years, which means buyers have slightly more room to negotiate than before.
Florence doesn't publish a formal months-of-inventory figure like some markets, but the combination of limited new listings and steady demand suggests inventory sits below what would be considered balanced (roughly 4 to 6 months), giving sellers a modest edge.
While we don't have a precise Florence-wide price reduction rate, the fact that prices have plateaued rather than accelerated suggests that sellers who overprice are now being forced to adjust, which is a sign that buyer leverage is slowly improving compared to a year ago.
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Florence as of 2026?
Are homes overpriced versus rents or versus incomes in Florence as of 2026?
As of early 2026, Florence homes look stretched versus local incomes but closer to fair value when compared to rents, which is a common pattern in supply-constrained cities with strong rental demand.
The price-to-rent ratio in Florence currently sits around 17 years (meaning it would take about 17 years of rent to equal the purchase price), which is slightly elevated but not extreme compared to a balanced benchmark of roughly 15 to 20 years for urban Italian markets.
The price-to-income multiple in Florence is harder to pin down precisely, but a typical 70 square meter apartment at around 317,000 euros represents a significant stretch for median local households, likely exceeding 8 to 10 times annual income, which is above the affordability comfort zone of 4 to 6 times.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Florence.
Are home prices above the long-term average in Florence as of 2026?
As of early 2026, Florence property prices appear to be above their long-term average in real terms, though the gap is not as dramatic as in some overheated global cities.
Over the past 12 months, Florence prices rose by roughly 3 to 4 percent nominally, which is faster than the slow or flat growth seen during much of the 2010s but not as explosive as the pandemic-era surges in some other European markets.
When adjusted for inflation, Italian real residential property prices remain below their pre-2008 cycle peak according to long-run BIS data, which suggests that while Florence feels expensive today, it hasn't fully recovered to its historical highs in purchasing-power terms.
Get fresh and reliable information about the market in Florence
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What local changes could move prices in Florence as of 2026?
Are big infrastructure projects coming to Florence as of 2026?
As of early 2026, the most significant infrastructure development affecting Florence property values is the ongoing tramvia (tram) network expansion, which is gradually improving connectivity between peripheral neighborhoods and the city center.
The tramway extensions targeting areas like Bagno a Ripoli and connections to key nodes such as Careggi hospital and Novoli university district are at various stages of planning and construction, with full delivery expected over the next several years rather than months.
For the latest updates on the local projects, you can read our property market analysis about Florence here.
Are zoning or building rules changing in Florence as of 2026?
The single most important rule change affecting Florence property in 2026 is the restriction on new short-term tourist rentals in the historic center (Nucleo Storico/Zona A), which limits Airbnb-style activity to units that were already operating in 2024.
As of early 2026, this rule change puts downward pressure on investor demand in the Centro Storico while potentially redirecting that demand to adjacent neighborhoods like Campo di Marte, Santo Spirito, or Rifredi where short-term rentals face fewer restrictions.
The areas most affected by these short-term rental rules are the UNESCO-protected historic core zones, particularly around Duomo, Santa Croce, and the Oltrarno, where landlords now face a choice between long-term tenants or holding properties that can no longer easily convert to tourist use.
Are foreign-buyer or mortgage rules changing in Florence as of 2026?
As of early 2026, there are no significant foreign-buyer restrictions being introduced in Florence or Italy more broadly, so international buyers face the same rules as before, though mortgage affordability remains the bigger factor for most purchasers.
Italy does not currently have foreign buyer bans, additional taxes, or quota systems under serious consideration, which makes Florence more accessible to international investors compared to markets like Canada or parts of Spain that have introduced such measures.
On the mortgage side, the key development is stability: the ECB held rates unchanged in December 2025, and Italian banks continue to offer mortgages to qualifying buyers (including non-residents in some cases), though loan-to-value ratios and stress tests remain standard European practice without major tightening expected.
You can also read our latest update about mortgage and interest rates in Italy.
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.
Will it be easy to find tenants in Florence as of 2026?
Is the renter pool growing faster than new supply in Florence as of 2026?
As of early 2026, renter demand in Florence appears to be growing faster than new rental supply, which is why rents have risen about 5 percent year over year and vacancies remain tight in desirable areas.
The main demand signal in Florence comes from a steady stream of students (the university system draws tens of thousands), hospital and research workers near Careggi, and a recovering tourism workforce, all of whom need rental housing in a city that isn't adding many new units.
On the supply side, new construction permits in Tuscany remain modest according to ISTAT data, and Florence's historic center constraints mean very few new rental apartments are coming online, keeping the market structurally undersupplied.
Are days-on-market for rentals falling in Florence as of 2026?
As of early 2026, we don't have a precise city-wide days-on-market figure for Florence rentals, but the sustained rent increases (around 5 percent year over year) strongly suggest that well-located units are being absorbed quickly.
In the best areas like Campo di Marte, Le Cure, or near the university in Novoli, quality rentals at market rates tend to find tenants within days to a couple of weeks, while properties in less connected or overpriced locations can sit for a month or more.
One common reason rental days-on-market falls in Florence is simple undersupply: when more renters are chasing fewer available units, landlords don't need to wait long to find a tenant, especially during September when students flood the market.
Are vacancies dropping in the best areas of Florence as of 2026?
As of early 2026, vacancies in Florence's top rental neighborhoods like Campo di Marte, Santo Spirito, and Rifredi appear to be staying low, driven by steady demand from students, young professionals, and families priced out of buying.
While Florence doesn't publish a formal vacancy rate, the combination of rising rents and quick absorption times in these areas suggests vacancies are well below what you'd see in a looser market, likely in the low single digits percentage-wise.
One practical sign that the best areas are tightening first is that landlords in neighborhoods like Le Cure or Coverciano are now able to be more selective about tenants and less willing to negotiate on price, which wasn't always the case a few years ago.
By the way, we've written a blog article detailing what are the current rent levels in Florence.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Florence as of 2026?
Is for-sale inventory shrinking in Florence as of 2026?
As of early 2026, it's difficult to give a precise year-over-year inventory change for Florence because Italy doesn't publish a centralized active-listings register, but the fact that prices remain sticky near their highs suggests available supply is not flooding the market.
Florence likely sits below the balanced-market threshold of roughly 4 to 6 months of supply, based on the combination of limited new construction, price stability near peaks, and anecdotal reports of competitive conditions for desirable properties.
The most likely reason inventory stays tight in Florence is that homeowners who locked in low mortgage rates years ago have little incentive to sell and buy again at today's higher rates, keeping potential listings off the market.
Are homes selling faster in Florence as of 2026?
As of early 2026, we estimate that median days-on-market for Florence properties is holding roughly steady rather than dramatically speeding up, reflecting a market that's active but not in a bidding-war frenzy.
Compared to a year ago, selling times in Florence appear similar or only slightly improved, which aligns with the price plateau: homes are moving, but buyers have enough options to avoid desperate overbidding.
Are new listings slowing down in Florence as of 2026?
As of early 2026, we're not confident enough to give a precise year-over-year change in new listings for Florence, but the overall sense is that new supply entering the market remains modest rather than surging.
Florence typically sees more listings in spring (April through June) and fewer in winter and late summer, so January levels being relatively quiet is normal, though the current low flow may be slightly below typical seasonal patterns.
The most plausible reason new listings are slow in Florence is rate lock-in: owners who secured mortgages at 1 to 2 percent a few years ago don't want to sell and take out a new loan at today's higher rates, so they stay put.
Is new construction failing to keep up in Florence as of 2026?
As of early 2026, new housing construction in Florence is clearly not keeping pace with demand, which is a structural feature of a historic, densely built city with strict planning controls.
Building permits in Tuscany have remained modest according to ISTAT data, and Florence's share of that is limited by the reality that there simply isn't much land to develop and historic preservation rules restrict what can be built.
The single biggest bottleneck limiting new construction in Florence is the combination of scarce developable land and lengthy, complex permitting processes, which means even developers who want to build face years of approvals before breaking ground.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Florence as of 2026?
Is resale liquidity strong enough in Florence as of 2026?
As of early 2026, resale liquidity in Florence is reasonably strong compared to smaller Italian cities, because buyer demand is diversified across owner-occupiers, students, lifestyle purchasers, and investors attracted by rental income.
While we don't have an official median days-on-market figure for Florence resales, properties priced correctly in good locations typically sell within 2 to 4 months, which is acceptable for a European city market, though not as liquid as, say, Milan.
The property characteristic that most improves resale liquidity in Florence is location within neighborhoods that have broad appeal, like Campo di Marte or Gavinana, because these areas attract multiple buyer types rather than depending on one narrow segment.
Is selling time getting longer in Florence as of 2026?
As of early 2026, selling times in Florence appear to be stable or marginally longer compared to the fastest-moving periods of recent years, reflecting a market that's normalizing rather than accelerating.
The realistic range for days-on-market in Florence currently spans from a few weeks for well-priced properties in prime locations to 4 to 6 months or more for overpriced or less desirable listings.
One clear reason selling time can lengthen in Florence is affordability pressure: when prices stay near highs but buyer incomes don't keep pace, the pool of qualified buyers shrinks, and properties that aren't competitively priced take longer to sell.
Is it realistic to exit with profit in Florence as of 2026?
As of early 2026, the likelihood of exiting with a profit in Florence is medium to high if you hold for a reasonable period, buy at a fair price, and choose a location with durable demand.
A realistic minimum holding period to exit with profit in Florence is typically 5 to 7 years, which allows time for modest price appreciation to outpace the substantial transaction costs and for any renovation investments to pay off.
Round-trip transaction costs in Florence, including notary fees, registration taxes, agency commissions, and selling costs, typically total around 10 to 15 percent of the property value (roughly 30,000 to 50,000 euros on a 320,000 euro apartment, or about 31,000 to 52,000 USD / 29,000 to 48,000 EUR at current rates).
The single factor that most increases profit odds in Florence is buying below market value, whether through negotiation, off-market deals, or targeting properties that need cosmetic work but are in strong rental neighborhoods like Rifredi or Campo di Marte.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Florence, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Agenzia delle Entrate (OMI Quotazioni) | Italy's official property market observatory run by the national tax authority. | We use it to anchor Florence prices by official OMI zones. It serves as our sanity check against private portal asking prices. |
| Agenzia delle Entrate (Rapporto Immobiliare 2025) | The flagship official report on residential transactions using administrative archives. | We use it for demand and sales volume signals across Italy and Tuscany. It helps us avoid over-reading listing data alone. |
| Banca d'Italia Housing Market Survey | The central bank's survey of market professionals, widely used as a forward-looking signal. | We use it to gauge near-term pricing pressure and perceived market liquidity. It provides soft leading indicators beyond raw price data. |
| ISTAT House Price Index | Italy's official statistics agency and the standard residential price index. | We use it to frame where Italy is in the broader price cycle. It serves as the baseline when evaluating bubble concerns. |
| ISTAT Building Permits Data | Official data on the new-building pipeline, a core supply indicator. | We use it to estimate whether new supply might relieve price pressure. It confirms Florence's hard-to-build reality. |
| European Central Bank (Dec 2025 Decision) | The primary source for euro-area policy rates that directly affect Italian mortgages. | We use it to set the interest rate backdrop as of the first half of 2026. It helps us assess affordability and buyer purchasing power. |
| Banca d'Italia (Tassi Eurosistema) | The central bank's official reference explaining policy rates and transmission channels. | We use it to explain how ECB rates affect mortgage costs in Italy. It keeps our narrative accurate and accessible. |
| idealista (Florence Sale Prices) | A major portal with published methodology and a long, consistent data series. | We use it for timely Florence price per square meter data. It helps us detect price peaks and plateaus right before January 2026. |
| idealista (Florence Rent Prices) | Same strengths as the sale index, but focused on rents for yield calculations. | We use it to estimate gross yields and price-to-rent ratios. Neighborhood rent pressure also serves as a tenant demand signal. |
| Immobiliare.it (Florence Market) | One of Italy's largest property platforms, useful for cross-checking trends. | We use it to validate the direction of Florence prices and market temperature. It serves as secondary confirmation. |
| Comune di Firenze (Short-term Rental Rules) | The city's official policy page directly relevant to rental demand and investor strategy. | We use it to understand where Airbnb-style revenue is being capped. It helps translate policy into practical neighborhood-level impacts. |
| OECD Housing Price Indicators | Provides internationally comparable price-to-income and price-to-rent ratios. | We use it to benchmark Italy's affordability against long-run norms. It provides the backdrop without replacing Florence-specific analysis. |
| BIS/FRED Real Property Prices (Italy) | A widely cited, long-run real price series sourced from the Bank for International Settlements. | We use it to keep crash fears grounded in historical cycles. It prevents us from judging everything from one hot year. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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