Italy cities or countryside: which buys hold value better?

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How have property prices in Italian cities compared to countryside areas over the past 10 years?

Italian cities have significantly outperformed countryside areas in property price appreciation over the past decade.

Northern cities like Milan and Florence have seen cumulative price increases of 13-20% over ten years, with Milan leading at approximately 15-18% total growth since 2015. Rome has achieved moderate but steady appreciation of around 10-13% over the same period.

In contrast, countryside regions have experienced much slower growth, with most rural areas in Tuscany averaging 2-3% annual appreciation, Umbria seeing 1-3% yearly increases, and southern rural regions like Sicily often experiencing flat or minimal price growth of 0-2% annually. Some remote countryside areas have even seen periods of price stagnation or slight decline.

The gap between urban and rural appreciation has widened significantly since 2020, driven by increased foreign investment in Italian cities and urban migration trends. Northern Italian cities have particularly benefited from international buyer demand and Italy's growing reputation as a stable European property market.

As of September 2025, this trend continues with Milan showing the strongest performance at 6.9% annual appreciation, while most countryside regions struggle to exceed 3% annual growth.

What are the average purchase prices per square meter in Rome, Milan, Florence, and Naples compared to Tuscany, Umbria, and Sicily's countryside?

The price gap between Italian cities and countryside regions is substantial, with urban properties commanding premium prices that reflect their superior liquidity and investment potential.

Milan properties can cost up to 7 times more per square meter than Sicily countryside homes, while even Rome properties typically cost 3-4 times more than rural Umbria properties. Florence maintains premium pricing due to its UNESCO World Heritage status and international tourism appeal.

How quickly do properties in major cities typically resell compared to rural homes?

Urban properties in Italy demonstrate significantly superior liquidity compared to countryside real estate, making cities the clear choice for investors prioritizing flexibility and quick exits.

Major Italian cities typically see properties resell within 4-8 months, with Milan and Florence often achieving sales in the shorter end of this range due to high demand from both domestic and international buyers. Rome properties average 6-8 months for resale, while Naples can extend to 8-12 months depending on the specific district and property condition.

Countryside properties face much longer marketing periods, often remaining on the market for 1-3 years before finding buyers. Rural properties in popular regions like Tuscany may sell within 12-18 months if well-maintained and reasonably priced, while remote areas in Sicily or southern Umbria can take 2-3 years or longer.

The liquidity advantage of cities becomes even more pronounced during economic uncertainty, when countryside properties can become nearly impossible to sell quickly. Urban properties maintain buyer interest even during market downturns, while rural areas see demand virtually disappear during challenging economic periods.

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

What has been the annual appreciation rate for city apartments versus countryside villas or farmhouses?

City apartments consistently outperform countryside properties in annual appreciation, with the gap widening significantly in recent years.

As of September 2025, Milan leads Italian cities with 6.9% annual appreciation, followed by Florence at 6.1% and Rome at 3.4%. Naples has shown more volatile performance with some quarters experiencing negative growth, but generally maintains positive annual appreciation of 1-2%.

Countryside properties deliver much lower returns, with Tuscany rural properties averaging 2-3% annual appreciation, Umbria countryside homes growing 1-3% yearly, and Sicily rural properties often experiencing 0-2% annual growth or flat performance. Some remote rural areas have seen extended periods of no appreciation or slight depreciation.

The appreciation gap reflects fundamental market dynamics: cities benefit from job growth, tourism, foreign investment, and population concentration, while countryside areas face depopulation, limited employment opportunities, and reduced infrastructure investment. Northern Italian cities have particularly benefited from their proximity to major European economic centers and improved transportation connections.

Over the past five years, the average annual appreciation gap between cities and countryside has been approximately 3-5 percentage points, making urban properties significantly more attractive for capital growth investors.

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How do rental yields differ between city apartments and countryside vacation rentals?

City apartments generally provide more reliable and consistent rental yields compared to countryside vacation rentals, though both markets offer distinct advantages depending on your investment strategy.

Italian city apartments typically generate net rental yields of 3.5-5%, with Milan and Florence achieving the highest returns due to strong demand from professionals, students, and short-term visitors. Rome apartments average 3.5-4.5% yields, while Naples can reach 4-5% due to lower purchase prices combined with steady rental demand.

Countryside vacation rentals show more variable performance, ranging from 2-4% net yields depending on location and tourism appeal. Properties in prime Tuscan locations or near popular destinations can achieve 4-6% during peak seasons, but face significant vacancy periods during off-seasons that reduce annual returns.

The key difference lies in consistency: city rentals provide year-round income with occupancy rates of 85-95%, while countryside vacation rentals may achieve higher per-night rates but suffer from seasonal fluctuations and occupancy rates of 40-70% annually. Additionally, countryside properties require higher management costs, more intensive marketing, and greater maintenance due to their rural nature and older construction.

Urban rental properties also benefit from easier tenant replacement, stronger legal protections, and more predictable market demand, making them preferable for investors seeking stable cash flow.

What percentage of countryside properties remain unsold after one year compared to city properties?

The liquidity gap between Italian cities and countryside creates a stark difference in property sale success rates, heavily favoring urban investments.

Urban properties benefit from larger buyer pools, better financing options, and more active real estate markets, while countryside properties face challenges including limited local buyer demand, financing difficulties for rural properties, and seasonal market activity that concentrates most sales in spring and summer months.

How much renovation budget should be expected for countryside properties versus city apartments?

Renovation costs vary significantly between cities and countryside, with rural properties often requiring larger absolute investments despite lower per-square-meter costs.

City apartments typically require renovation budgets of €700-€1,700 per square meter, with basic renovations starting around €700-€900 per sqm and luxury renovations reaching €1,400-€1,700 per sqm. Urban properties benefit from easier access to contractors, standardized materials, and more predictable renovation timelines.

Countryside properties present a wider range of renovation needs, typically costing €500-€2,000 per square meter. While the lower end reflects simpler rural labor costs, the upper end accounts for structural challenges common in older farmhouses, including foundation issues, outdated electrical systems, and the need for septic systems or well water infrastructure.

Rural properties often require additional investments not typically needed in cities: septic system installation or repair (€8,000-€15,000), well drilling or water system upgrades (€5,000-€12,000), and extensive grounds maintenance including driveway repair and landscaping. Historic countryside properties may also face regulatory restrictions that increase renovation complexity and costs.

The total renovation investment for countryside properties frequently exceeds city apartments when considering these additional rural-specific requirements, making the true cost of countryside ownership higher than initial purchase prices suggest.

What are the ongoing ownership costs (taxes, maintenance, utilities) in cities compared to rural areas?

Ongoing ownership costs show mixed advantages between cities and countryside, with cities generally having higher taxes and fees but more predictable maintenance expenses.

Italian city properties face higher annual costs averaging €2,500-€4,000 yearly, including higher IMU property taxes, substantial condominium fees (€1,000-€3,000 annually), and premium utility rates. Cities also enforce stricter energy efficiency standards that may require costly upgrades to meet regulatory compliance.

Countryside properties typically incur €1,800-€3,500 in annual costs, benefiting from lower local taxes and no condominium fees, but facing higher per-unit maintenance expenses. Rural properties require extensive grounds maintenance, private road upkeep, and often deal with water system maintenance, septic management, and heating system costs that urban properties avoid.

Utility costs in countryside areas can be surprisingly high due to less efficient heating systems, larger spaces to heat and cool, and sometimes limited infrastructure requiring expensive private solutions. Rural properties also face higher insurance costs due to their isolated locations and increased risks from weather, theft, and fire.

The unpredictability of rural maintenance costs—such as roof repairs, well problems, or septic issues—can create significant unexpected expenses that urban condo owners rarely face due to shared building maintenance and professional management.

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 strong is foreign buyer demand in cities compared to the countryside?

Foreign buyer demand heavily favors Italian cities, particularly Milan, Florence, and Rome, while countryside demand remains concentrated in specific tourist regions.

Italian cities attract diverse foreign buyers including investors seeking rental income, professionals relocating for work, and lifestyle buyers drawn to urban amenities and cultural attractions. Milan sees particularly strong demand from northern European investors and international business professionals, while Florence attracts American and British buyers seeking historic charm combined with urban convenience.

Countryside foreign demand concentrates primarily in Tuscany, where British, German, Dutch, and American buyers seek vacation homes and retirement properties. Umbria attracts moderate foreign interest, particularly from buyers seeking more affordable alternatives to Tuscany. Sicily and other southern rural regions see limited foreign buyer activity except for unique properties or those near tourist centers.

The foreign buyer premium—the additional amount international buyers are willing to pay above local market rates—averages 5-10% in major cities but can reach 15-20% in prime countryside locations like Chianti or Val d'Orcia. However, this premium applies to only a small percentage of countryside properties, while cities benefit from broader foreign buyer interest across various property types and price ranges.

Foreign financing options also favor city purchases, with international buyers finding it easier to secure mortgages for urban properties compared to rural investments, further concentrating foreign demand in metropolitan areas.

What are the projected population trends in Italian cities versus rural areas over the next 20 years?

Population projections strongly favor Italian cities over countryside areas, creating long-term demographic support for urban property values.

Major Italian cities are projected to maintain stable or slowly growing populations through 2045, driven by continued domestic migration from rural areas, international immigration, and the concentration of employment opportunities in urban centers. Milan and its metropolitan area expect population growth of 2-5% over the next 20 years, while Rome and Florence anticipate stable populations with slight growth.

Italian countryside faces significant demographic challenges, with most rural areas projected to lose 10-25% of their population over the next two decades. This rural depopulation trend reflects limited employment opportunities, aging populations, and young people migrating to cities for education and careers.

The demographic shift creates a fundamental supply-demand imbalance: countryside areas will have increasing property supply as older residents pass away or move to cities, while demand continues to weaken due to population decline. Cities face the opposite dynamic, with stable or growing populations supporting continued housing demand.

These population trends directly impact property investment potential, as growing or stable urban populations support rental demand and property values, while declining rural populations reduce both rental markets and eventual resale buyer pools. The demographic advantage of cities represents a crucial long-term factor favoring urban property investments over countryside alternatives.

How does proximity to transportation hubs like airports and high-speed rail stations affect resale value in both areas?

Transportation accessibility creates significant value premiums in both cities and countryside, but the impact varies considerably between urban and rural contexts.

Urban properties within 30 minutes of major airports or high-speed rail stations command 5-15% premiums over comparable properties in less accessible locations. Milan properties near Malpensa Airport or central train stations maintain the highest premiums, while Rome properties benefit from proximity to Fiumicino Airport and high-speed rail connections to Florence and Naples.

Countryside properties near transportation hubs experience even more dramatic value impacts, with rural homes within 30 minutes of major airports or rail stations holding value 20-40% better than remote properties. Tuscan properties near Florence's airport or high-speed rail connections to Rome significantly outperform isolated rural areas in terms of both appreciation and resale speed.

The transportation premium reflects practical buyer concerns: urban buyers value convenience for business travel and daily commuting, while countryside buyers—often foreigners or vacation home purchasers—prioritize easy access for visits and eventual resale to similar international buyers.

Properties in countryside areas without reasonable transportation access face severe liquidity challenges, often taking 2-3 times longer to sell and achieving 10-20% lower prices than similar properties with good transportation connections. This transportation penalty becomes more severe for countryside properties because buyers have fewer alternative transportation options compared to cities with multiple airports, train stations, and highway access points.

What have been the long-term effects of tourism on property values in cities like Florence and Venice compared to countryside regions like Tuscany or Puglia?

Tourism has dramatically boosted property values in major Italian tourist cities while creating more selective value increases in countryside tourist regions.

Florence and Venice have experienced tourism-driven price inflation that significantly exceeds normal market appreciation, with central Florence properties gaining an additional 2-4% annual premium above standard appreciation due to short-term rental potential and international buyer demand. Venice properties suitable for tourist rentals command premiums of 20-30% above comparable residential properties.

Tourist cities benefit from multiple income streams including traditional long-term rentals, short-term vacation rentals, and strong resale demand from international buyers seeking investment properties. This diversified demand creates price floors that support values even during tourism downturns.

Countryside tourist regions like Tuscany and Puglia show more selective tourism impacts, with properties in prime locations (wine regions, coastal areas, historic villages) experiencing significant premiums while remote rural areas see minimal tourism benefit. Well-located Tuscan properties can achieve 15-25% premiums over non-tourist rural areas, but this advantage applies to perhaps 20-30% of countryside properties.

The tourism effect also creates seasonal volatility in countryside markets that cities avoid: rural tourist properties may see strong demand and price appreciation during peak seasons but face reduced interest during off-seasons, while cities maintain more consistent year-round demand from diverse buyer categories.

What factors make city properties more liquid than countryside homes?

Multiple structural factors combine to make Italian city properties significantly more liquid than countryside alternatives, creating fundamental advantages for investors prioritizing flexibility.

1. Larger buyer pools: Cities attract diverse buyers including young professionals, families, investors, and international purchasers, while countryside properties appeal to a narrow segment of lifestyle buyers and vacation home seekers
2. Financing accessibility: Banks readily provide mortgages for city properties with standard terms, while countryside properties often face stricter lending criteria, higher down payment requirements, and reduced loan-to-value ratios
3. Professional real estate networks: Cities have numerous active real estate agents, property management companies, and marketing channels, while countryside areas often rely on limited local agents with smaller networks
4. Standardized valuations: Urban properties benefit from abundant comparable sales data and professional appraisal services, while countryside properties face valuation challenges due to unique characteristics and limited comparable sales
5. Infrastructure reliability: City properties offer predictable utilities, internet access, and municipal services that countryside properties may lack, reducing buyer concerns about habitability and ongoing costs

These liquidity advantages compound over time, making cities increasingly attractive to investors who understand that real estate investment success often depends as much on exit strategy as on entry price.

Which Italian regions offer the best compromise between price and value retention?

Certain Italian regions and cities offer attractive balances between affordability and value retention, providing opportunities for strategic property investors.

Naples represents the best urban compromise, offering city amenities and reasonable liquidity at prices 20-40% below Rome and 40-50% below Milan, while still maintaining positive appreciation and rental demand. Bologna and Turin also provide good value with strong universities, growing economies, and property prices significantly below Milan and Florence.

Among countryside regions, northern Tuscany (excluding prime Chianti areas) offers better value retention than southern countryside while remaining more affordable than central Tuscany tourist zones. Properties within 45 minutes of Florence benefit from urban proximity while avoiding peak tourist pricing.

Umbria's countryside near Perugia or Assisi provides the best rural compromise, offering historic charm and reasonable tourism appeal at prices 50-60% below comparable Tuscan properties, with better liquidity than more remote rural areas due to university towns and cultural attractions.

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

Avoid remote areas in Sicily, Calabria, or mountain regions unless you're seeking personal use properties, as these areas face the greatest liquidity challenges and weakest value retention prospects.

What role does foreign investment play in supporting city versus countryside property values?

Foreign investment provides crucial support for Italian property values, but this support concentrates heavily in cities and select countryside tourist regions, creating significant market disparities.

Italian cities receive substantial foreign investment from multiple buyer categories: international funds purchasing rental properties, individual investors seeking European portfolio diversification, and lifestyle buyers relocating to Italy. Milan attracts the highest foreign investment volume, followed by Florence and Rome, with foreign buyers representing 15-25% of total transactions in prime urban areas.

Foreign investment in cities provides price stability during market downturns and drives premiums during strong periods, as international buyers often have higher budgets and different motivations compared to local buyers focused primarily on affordability and practical needs.

Countryside foreign investment concentrates in established tourist regions, particularly Tuscany, where foreign buyers may represent 30-50% of transactions in prime areas like Chianti or Val d'Orcia. However, this foreign support applies to only a small percentage of total countryside properties, leaving most rural areas dependent solely on limited domestic demand.

The foreign investment effect creates a two-tier countryside market: properties appealing to international buyers (restored farmhouses, wine estates, tourist-accessible locations) benefit from strong demand and price support, while typical rural properties face weak demand and limited value appreciation due to minimal foreign buyer interest.

How do infrastructure and amenities affect long-term value in cities versus countryside?

Infrastructure quality and amenity access create fundamental value advantages for Italian cities that compound over time, while countryside properties face ongoing infrastructure challenges that limit value growth.

Italian cities benefit from comprehensive infrastructure including reliable utilities, high-speed internet, public transportation, healthcare facilities, and educational institutions that support property values through enhanced livability and rental demand. Cities also receive priority for infrastructure improvements and technology upgrades that further boost property appeal.

Countryside properties often struggle with infrastructure limitations including unreliable internet service, limited public transportation, distant healthcare facilities, and sometimes problematic water or septic systems. These infrastructure gaps reduce property appeal to both renters and buyers, particularly younger demographics who prioritize connectivity and convenience.

The infrastructure advantage extends to amenities: cities offer restaurants, shopping, cultural attractions, and recreational facilities within walking distance, while countryside properties may require 30-60 minute drives to access basic services. This amenity gap becomes more significant as Italy's population ages and values convenience increasingly highly.

Long-term infrastructure trends favor cities, with Italy prioritizing urban transportation improvements, fiber internet expansion to cities first, and healthcare system consolidation in urban centers. These ongoing improvements continuously enhance city property values while countryside areas face service reductions and infrastructure neglect.

The infrastructure divide also affects rental markets, as city properties attract tenants seeking convenience while countryside properties primarily appeal to vacation renters or buyers seeking isolation—a much smaller and more seasonal market segment.

What are the tax implications for city versus countryside property ownership?

Tax implications vary between Italian cities and countryside, with cities generally facing higher property taxes but offering better tax planning opportunities.

Cities face higher IMU property taxes due to higher cadastral values, with Milan and Florence properties often paying 2-3 times more in annual property taxes than comparable countryside properties. However, cities offer better access to tax advisors and more sophisticated tax planning strategies for rental income optimization.

Countryside properties benefit from lower annual property taxes and often qualify for agricultural tax benefits if they include farming land, but may face challenges with tax compliance due to limited local expertise and more complex rural property regulations.

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

Which investment strategy works better for each property type?

Different investment strategies align better with cities versus countryside properties, reflecting their distinct market characteristics and risk profiles.

City properties excel for buy-and-hold rental strategies, offering consistent cash flow, predictable appreciation, and easy management through professional property management companies. Urban properties also work well for fix-and-flip strategies due to faster sales cycles and larger buyer pools, though profit margins may be lower due to higher purchase prices.

Countryside properties suit long-term buy-and-hold strategies for patient investors willing to accept lower liquidity in exchange for potentially higher percentage returns in prime tourist locations. Vacation rental strategies can work well for countryside properties in established tourist regions, but require active management and seasonal planning.

Portfolio diversification strategies often include both property types: cities for stable cash flow and liquidity, countryside for potential upside in select tourist markets. However, countryside properties should represent no more than 20-30% of a real estate portfolio due to their liquidity constraints and higher risk profiles.

Value-add strategies work differently in each market: cities favor cosmetic improvements and amenity upgrades that appeal to renters and urban buyers, while countryside properties may require substantial structural investments to reach their full potential, often requiring larger capital commitments and longer timelines to realize returns.

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. InvestRopa - Italy Price Forecasts
3. InvestRopa - Average House Prices Italy
4. InvestRopa - Umbria Price Forecasts
5. Centrarium - Italy Housing Prices 2025
6. IAD Overseas - Italy Property Investment 2025
7. Properstar - Italy Real Estate Market Guide
8. Global Property Guide - Italy 10-Year Price Changes