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
Florence is one of Italy's most expensive property markets, sitting just behind Milan, and understanding its real estate dynamics is essential if you want to buy there.
In this article, we break down the current housing prices in Florence, how the market is performing, and what you should expect if you are a foreigner looking to purchase property in 2026.
We constantly update this blog post to keep the information fresh and reliable for buyers like you.
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.
How's the real estate market going in Florence in 2026?
What's the average days-on-market in Florence in 2026?
As of early 2026, the average days-on-market for residential properties in Florence is estimated at around 95 days, which means most homes take roughly three months from listing to sale.
That said, the realistic range that covers most typical listings in Florence spans from about 75 days for well-priced, move-in-ready apartments in popular neighborhoods to 115 days for properties that need renovation or sit in less desirable locations.
Compared to one or two years ago, selling times in Florence have remained relatively stable, with only a slight increase from the 91 days recorded in mid-2025, reflecting a market that is still active but slightly more cautious as buyers become more selective.
Are properties selling above or below asking in Florence in 2026?
As of early 2026, properties in Florence typically sell about 6% to 8% below their initial asking price, meaning a home listed at 500,000 euros often closes somewhere around 460,000 to 470,000 euros after negotiation.
Only about 10% to 20% of properties in Florence sell at or above asking, and we are reasonably confident in this estimate because it aligns with both national brokerage data and the supply-constrained nature of Florence's historic housing stock.
The properties most likely to see bidding wars and above-asking sales in Florence are turnkey renovated apartments in prime locations like Centro Storico, Oltrarno, and the Michelangelo-Porta Romana hillside area, where international buyers and investors compete for limited inventory.
By the way, you will find much more detailed data in our property pack covering the real estate market in Florence.
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.
What kinds of residential properties can I realistically buy in Florence?
What property types dominate in Florence right now?
The breakdown of residential property types available for sale in Florence in 2026 is roughly 70% apartments, 15% townhouses, 8% detached houses, 5% villas, and just 2% lofts or penthouses, reflecting the city's dense historic urban fabric.
Apartments clearly represent the largest share of the Florence property market, dominating listings both in the historic center and in residential neighborhoods like Campo di Marte, Rifredi, and Gavinana.
Apartments became so prevalent in Florence because the city developed over centuries with multi-story buildings packed into a limited footprint, and strict heritage preservation rules make it nearly impossible to build detached homes inside the city proper.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Florence right now?
New-build properties make up only a small fraction of residential listings in Florence, estimated at less than 10% of available inventory, because the city's mature urban fabric and strict planning constraints severely limit fresh construction.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Florence are mostly urban regeneration areas like the ex Manifattura Tabacchi district near Cascine, along with scattered projects in Novoli, Rifredi, and corridors along the expanding tramway lines.
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Which neighborhoods are improving fastest in Florence in 2026?
Which areas in Florence are gentrifying in 2026?
As of early 2026, the top neighborhoods in Florence showing the clearest signs of gentrification are Gavinana-Galluzzo in the south, Isolotto-Legnaia in the west, and Campo di Marte in the east, all of which have seen noticeable price acceleration over the past two years.
Visible changes indicating gentrification in these Florence neighborhoods include the arrival of specialty coffee shops and artisan food stores in Gavinana, the renovation of 1960s apartment blocks in Isolotto, and a growing number of young families relocating to Campo di Marte for its parks and proximity to schools.
Price appreciation in these gentrifying Florence neighborhoods has ranged from roughly 8% to 15% over the past two to three years, with Gavinana-Galluzzo showing particularly strong momentum due to its combination of affordability and improving transit connections.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Florence.
Where are infrastructure projects boosting demand in Florence in 2026?
As of early 2026, the top areas in Florence where major infrastructure projects are boosting housing demand are the western corridor along the planned Tramvia Line 4, including Leopolda, Porta al Prato, Cascine, and Le Piagge, as well as the southeast corridor toward Bagno a Ripoli where Line 3.2.1 is under construction.
The specific infrastructure projects driving that demand in Florence are the Tramvia Line 4, which will connect Stazione Leopolda to Piagge and eventually Campi Bisenzio, and Tramvia Line 3.2.1, which will extend service from Piazza della Libertà to Bagno a Ripoli with 17 new stops.
The estimated timeline for completion of these major Florence tramway projects is late 2026 for Line 4, which is tied to PNRR funding deadlines, and a similar timeframe for sections of Line 3.2.1, though construction delays remain possible given the complexity of urban works.
The typical price impact on nearby properties in Florence is modest during the announcement and construction phases, often just 2% to 5%, but once tramway lines become operational, properties within walking distance of stops have historically seen appreciation of 8% to 15% compared to similar homes farther from transit.
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.
What do locals and insiders say the market feels like in Florence?
Do people think homes are overpriced in Florence in 2026?
As of early 2026, sentiment among locals and market insiders in Florence is mixed, with many residents feeling priced out while investors and international buyers still view the city as relatively affordable compared to other European heritage destinations.
The specific evidence locals in Florence typically cite when arguing homes are overpriced includes average asking prices exceeding 4,500 euros per square meter in the city center, rent increases of over 8% year-on-year, and the difficulty for young Florentines earning typical local salaries to afford even a modest apartment.
Those who believe prices are fair in Florence usually point to the city's irreplaceable historic character, limited supply of quality housing, strong international demand, and the fact that prices are still well below comparable cities like Milan or major European capitals.
The price-to-income ratio in Florence is notably higher than Italy's national average, with median home prices requiring roughly 10 to 12 years of average local household income, compared to 7 to 8 years nationally, which explains why affordability concerns are particularly acute for Florentine residents.
What are common buyer mistakes people regret in Florence right now?
The most frequently cited buyer mistake that people regret making in Florence is underestimating the complexity and cost of renovating historic properties, where heritage restrictions, condominium approvals, and outdated electrical or plumbing systems can easily double your initial budget and timeline.
The second most common buyer mistake people mention regretting in Florence is purchasing a ground-floor or semi-basement apartment near the Arno River without fully understanding flood risk and humidity issues, which can lead to costly damage and difficulty reselling.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Florence.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Florence.
Get the full checklist for your due diligence in Florence
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Florence in 2026?
Do foreigners face extra challenges in Florence right now?
The overall difficulty level foreigners face when buying property in Florence is moderate compared to local buyers, with the main friction points being administrative paperwork, banking requirements, and navigating unfamiliar legal processes rather than outright ownership restrictions.
The specific legal requirement that applies to many non-EU foreign buyers in Florence is Italy's reciprocity rule, which means your home country must allow Italians to buy property there before you can purchase in Italy, though this condition is met by most Western countries including the United States, Canada, and the United Kingdom.
Practical challenges foreigners most commonly encounter in Florence include obtaining an Italian tax code (codice fiscale) before any transaction can proceed, finding a notary who can explain the deed in English, and dealing with property descriptions that use local terminology unfamiliar to outsiders, such as "classe energetica" ratings or "cantine" (basement storage) designations.
We will tell you more in our blog article about foreigner property ownership in Florence.
Do banks lend to foreigners in Florence in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Florence, but approval is more difficult than for Italian residents, and most banks will require you to put down a larger deposit and provide extensive documentation of your income and assets.
The typical loan-to-value ratios foreign buyers can expect in Florence range from 50% to 60%, meaning you need a down payment of 40% to 50% of the purchase price, and interest rates currently sit between 3% and 5% depending on whether you choose a fixed or variable rate mortgage.
The documentation banks in Florence typically demand from foreign applicants includes two to three years of tax returns, recent payslips or accountant statements for the self-employed, proof of funds for the down payment, bank statements showing savings history, and sometimes a letter explaining the source of your wealth.
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.
How risky is buying in Florence compared to other nearby markets?
Is Florence more volatile than nearby places in 2026?
As of early 2026, Florence shows moderate price volatility compared to nearby markets like Bologna and Siena, with Florence prices moving more sharply due to its heavier reliance on international buyers and tourism, while Bologna benefits from steadier domestic demand driven by its university and business economy.
Over the past decade, Florence experienced price swings that were more pronounced than Bologna but less extreme than pure resort markets, with values dropping roughly 15% to 20% in real terms during the 2010-2014 downturn and then recovering strongly, particularly after 2020 when international demand returned.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Florence.
Is Florence resilient during downturns historically?
Florence has historically shown good resilience during economic downturns, with prime central locations holding their value significantly better than peripheral neighborhoods or lower-quality stock.
During the most recent major downturn following the 2008 financial crisis, Florence property prices dropped roughly 20% to 25% in real terms between 2009 and 2014, and full recovery to pre-crisis levels took approximately 8 to 10 years, though the best locations recovered faster.
The property types and neighborhoods in Florence that have historically held value best during downturns are renovated apartments in Centro Storico, Oltrarno, and the Michelangelo-Porta Romana hillside, where scarcity of supply and consistent international demand create a floor under prices even when the broader market weakens.
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How strong is rental demand behind the scenes in Florence in 2026?
Is long-term rental demand growing in Florence in 2026?
As of early 2026, long-term rental demand in Florence is growing strongly, driven by a persistent supply squeeze as many landlords shifted properties to short-term tourist rentals over the past decade, leaving fewer options for residents seeking traditional leases.
The tenant demographics driving long-term rental demand in Florence include young professionals working in the city's fashion, design, and tech sectors, university students attending institutions like the University of Florence, and a growing population of expats and remote workers who prefer to rent before committing to a purchase.
The neighborhoods in Florence with the strongest long-term rental demand right now are Campo di Marte, Rifredi, and Novoli, where relatively affordable rents, good transit connections, and proximity to employment hubs attract tenants who have been priced out of the historic center.
You might want to check our latest analysis about rental yields in Florence.
Is short-term rental demand growing in Florence in 2026?
Florence has implemented some of Italy's strictest regulatory changes affecting short-term rentals, including a ban on new tourist rental permits in the UNESCO-listed historic center since May 2025, mandatory CIN registration codes, minimum apartment sizes of 28 square meters, required safety equipment, and a prohibition on key boxes for self check-in.
As of early 2026, short-term rental demand in Florence remains structurally strong thanks to the city's tourism engine, with over 4 million visitor arrivals and 9.7 million overnight stays recorded in the first 10 months of 2025, both up significantly from the previous year.
The current estimated average occupancy rate for short-term rentals in Florence hovers around 65% to 75% annually, though this varies significantly by season and location, with properties near the Duomo and in Oltrarno consistently outperforming those in peripheral areas.
The guest demographics driving short-term rental demand in Florence are primarily leisure tourists, including American and Northern European visitors seeking cultural experiences, along with a smaller but growing segment of business travelers and digital nomads who prefer apartment stays over hotels.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Florence.
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.
What are the realistic short-term and long-term projections for Florence in 2026?
What's the 12-month outlook for demand in Florence in 2026?
As of early 2026, the 12-month demand outlook for residential property in Florence is steady to mildly positive, with market professionals surveyed by the Bank of Italy describing expectations as overall favorable despite some caution compared to the previous year.
The key economic and political factors most likely to influence demand in Florence over the next 12 months include ECB interest rate decisions affecting mortgage affordability, Italy's implementation of PNRR infrastructure funds, the trajectory of international tourism, and any new regulations on short-term rentals that could shift investor behavior.
The forecasted price movement for Florence over the next 12 months is an increase of roughly 0% to 5% citywide, with stronger growth of 5% to 7% expected in emerging neighborhoods like Gavinana and areas benefiting from tramway expansion, while prime central locations may see more modest gains.
By the way, we also have an update regarding price forecasts in Italy.
What's the 3 to 5 year outlook for housing in Florence in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Florence is moderately positive, with most analysts expecting continued appreciation driven by constrained supply, sustained international interest, and infrastructure improvements, though growth rates are likely to slow from recent highs.
The major development projects expected to shape Florence over the next 3 to 5 years include the completion of Tramvia Lines 4 and 3.2.1, the ongoing redevelopment of the ex Manifattura Tabacchi into a mixed-use district, and continued urban regeneration in Novoli and the western corridors.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Florence is a potential shock to international tourism or a tightening of short-term rental regulations that reduces investor demand, which could dampen price growth more than current projections anticipate.
Are demographics or other trends pushing prices up in Florence in 2026?
As of early 2026, demographic trends are having a meaningful impact on housing prices in Florence, with an aging local population creating demand for accessible properties while a younger cohort of international buyers and remote workers competes for the same limited housing stock.
The specific demographic shifts most affecting prices in Florence include the city's high share of residents over 65, which now exceeds 28%, creating turnover as older homeowners downsize or pass on properties, combined with steady migration of young professionals and students who cannot afford to buy and thus intensify rental demand.
Non-demographic trends also pushing prices in Florence include the sustained appeal of the city to international lifestyle buyers, particularly Americans and Northern Europeans seeking second homes, as well as the growth of remote work allowing people to live in culturally rich cities without needing local employment.
These demographic and trend-driven price pressures in Florence are expected to continue for at least the next 5 to 10 years, as the fundamental constraints of limited buildable land, strict heritage preservation, and global desirability are unlikely to change significantly.
What scenario would cause a downturn in Florence in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Florence would be a combination of a significant drop in international tourism due to global economic recession and a meaningful tightening of credit conditions that makes mortgages harder to obtain for both local and foreign buyers.
Early warning signs that such a downturn is beginning in Florence would include a noticeable increase in average days-on-market beyond 120 days, a widening discount from asking prices to more than 10%, declining tourist arrivals for two or more consecutive quarters, and a sharp drop in transaction volumes reported by the Agenzia delle Entrate.
Based on historical patterns, a potential downturn in Florence could realistically see prices decline 10% to 20% in real terms over 2 to 4 years, with peripheral neighborhoods and unrenovated properties experiencing steeper drops while prime central locations would likely hold up better and recover faster.
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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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Agenzia delle Entrate (OMI) | Italy's official property market observatory using administrative records and standardized zoning. | We used it as the official floor and ceiling price-per-square-meter reference by area and property condition. We cross-checked private listing prices against OMI ranges to avoid being misled by inflated asking prices. |
| Banca d'Italia Housing Market Survey | The central bank's recurring survey of market professionals on prices, demand, and expectations. | We used it to ground 2026 sentiment without relying on headlines. We adjusted our estimates for things like time-to-sell based on professional expectations. |
| ISTAT House Price Index | The national statistics office's official index for residential purchase prices across Italy. | We used it to benchmark Florence against Italy-wide price growth so we don't overfit to one city. We translated local price signals into a macro-consistent view. |
| Tecnocasa Research | One of Italy's largest brokerage networks with transparent, recurring market reporting. | We used it for market plumbing metrics like days-on-market and discount-to-asking that official sources don't publish quickly. We used its Florence-specific selling-time data to build our 2026 estimate. |
| Idealista | A large, established portal with published methodology and granular neighborhood-level data. | We used it to get fast, neighborhood-level asking-price momentum signals. We only used it after anchoring with official sources since portal data reflects listings, not final deeds. |
| Immobiliare.it | Italy's largest property portal with detailed price tracking by municipality and neighborhood. | We used it to track current asking prices and rental trends across Florence neighborhoods. We combined its data with official sources to validate price directions. |
| Comune di Firenze | The city's official press releases citing local tourism observatory and metropolitan data. | We used it to anchor short-term rental demand to real visitor volumes. We stress-tested whether STR demand is structural based on the tourism engine. |
| ECB Bank Lending Survey | The official euro-area reference for credit conditions and demand for loans. | We used it to triangulate Italy's lending trend with euro-area conditions. We avoided making Florence-only calls that contradict the interest-rate and credit backdrop. |
| Italian Ministry of Foreign Affairs (MAECI) | The official government reference for reciprocity rules affecting foreign property rights in Italy. | We used it to explain the primary legal gate for many non-EU buyers in plain language. We showed where to verify specific nationality cases before spending on due diligence. |
| AirDNA | A widely used STR data provider aggregating Airbnb and Vrbo performance metrics. | We used it to estimate occupancy and ADR direction for short-term rentals in Florence. We cross-checked it against official tourism flow data so platform metrics aren't taken in isolation. |
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