Is now a good time to buy a property in Italy? (January 2026)

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

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INVESTROPA

A team specialized in real estate investing in European countries

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.

Is it smart to buy now in Italy, or should I wait as of 2026?

Do real estate prices look too high in Italy as of 2026?

As of January 2026, Italian property prices do not look dramatically stretched at the national level, with house prices up around 4% year-on-year and affordability ratios remaining close to or below their 2015 baseline according to OECD data.

One clear on-the-ground signal is the average negotiation discount, which sits at about 7.8% according to the Banca d'Italia housing survey, meaning sellers are still giving ground rather than holding firm like they would in an overheated market.

Another supporting signal is the average time-to-sell of around 5.4 months, which is tight by Italian standards but has ticked up slightly, suggesting buyers are starting to regain a small amount of bargaining power in the Italian property market.

You can also read our latest update regarding the housing prices in Italy.

Does a property price drop look likely in Italy as of 2026?

As of January 2026, the likelihood of a meaningful property price decline in Italy over the next 12 months appears low, mainly because affordability is not stretched and long-term real prices remain below prior peaks.

A plausible price change range for Italy over the next year would be somewhere between a slight dip of 2% and continued growth of up to 5%, with moderate growth being the more probable scenario given current demand and supply dynamics.

The single most important macro factor that could increase the odds of a price drop in Italy would be a renewed spike in interest rates, which would hit affordability hard, especially for mortgage-dependent buyers in the suburbs and smaller cities.

However, this scenario looks unlikely at the moment, as the ECB has moved away from its aggressive rate-hiking phase and the Banca d'Italia survey shows mortgage access difficulties easing throughout 2025.

Finally, please note that we cover the price trends for next year in our pack about the property market in Italy.

Could property prices jump again in Italy as of 2026?

As of January 2026, the likelihood of a renewed price surge in Italy is medium, with the strongest potential showing up in city cores, student cities, and tourism hotspots rather than a broad national wave.

A plausible upside price change range for Italy over the next 12 months could reach 6 to 8% in the hottest micro-markets like central Milan or Florence, while the national average would more likely stay in the 3 to 5% range.

The single biggest demand-side trigger that could drive Italian property prices to jump again would be continued easing of mortgage conditions, which the Banca d'Italia survey already shows happening through 2025, combined with tight supply in high-demand areas.

Please also note that we regularly publish and update real estate price forecasts for Italy here.

Are we in a buyer or a seller market in Italy as of 2026?

As of January 2026, the Italian property market leans slightly toward sellers overall, though the balance is not extreme and buyers are regaining some negotiating power in certain segments.

The closest equivalent to months-of-inventory in Italy is the average time-to-sell, which currently sits at about 5.4 months according to the Banca d'Italia survey, a level that typically gives sellers more leverage since properties are not sitting unsold for long.

The average discount from asking price in Italy is around 7.8%, which suggests that while sellers hold some advantage, buyers can still negotiate meaningful reductions, especially on properties that have been on the market for a while.

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 Italy as of 2026?

Are homes overpriced versus rents or versus incomes in Italy as of 2026?

As of January 2026, Italian homes appear closer to fairly priced than overpriced at the national level, though some local markets like Milan's city center and popular tourist areas may be stretched.

The price-to-rent ratio in Italy has been supported by strong rent growth of around 3.5% per year according to Nomisma, which means that buying does not look dramatically more expensive than renting compared to historical norms.

The price-to-income multiple in Italy has remained around or below its 2015 baseline in OECD frameworks, which is generally considered a signal of reasonable affordability rather than dangerous overheating.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Italy.

Are home prices above the long-term average in Italy as of 2026?

As of January 2026, Italian property prices are rising in nominal terms but remain unusual among developed countries because inflation-adjusted prices are still not dramatically above their earlier peaks.

The recent 12-month price change in Italy is around 4% according to ISTAT, which is solid growth but not the double-digit surges seen in some other European markets during the pandemic era.

In real, inflation-adjusted terms, Italian property prices remain below their 2010 levels according to BIS data, which is a stark contrast to many countries where real prices have doubled since then and suggests Italy has more room to grow without being in bubble territory.

What local changes could move prices in Italy as of 2026?

Are big infrastructure projects coming to Italy as of 2026?

As of January 2026, the biggest infrastructure driver affecting Italian property prices is the Milano-Cortina 2026 Winter Olympics, which has supported values in specific corridors around Milan and the Dolomites region, though the impact is hyper-local rather than national.

Beyond the Olympics, ongoing metro expansions in Milan, particularly the M4 line, and transit upgrades in Rome continue to lift values near new stations, with areas like Porta Romana and San Siro in Milan and Ostiense and San Giovanni in Rome benefiting most directly.

For the latest updates on the local projects, you can read our property market analysis about Italy here.

Are zoning or building rules changing in Italy as of 2026?

The most important rule changes being discussed in Italy relate to energy renovation incentives and requirements, which affect older apartments in condomini and rural homes like casali and rustici most directly.

As of January 2026, the net effect of recent building rule changes on Italian property prices has been mixed: tighter energy standards add renovation costs for older stock, but incentive programs partially offset this and can boost values for properties that have already been upgraded.

The areas most affected by these rule changes in Italy are historic city centers with older building stock, such as Rome's Trastevere or Florence's Oltrarno, where energy upgrades can be complex and expensive but also significantly increase property values once completed.

Are foreign-buyer or mortgage rules changing in Italy as of 2026?

As of January 2026, no major foreign-buyer restrictions are being introduced in Italy, and mortgage conditions are actually easing compared to the tighter environment of 2023 and 2024, which is modestly supportive for property prices.

Italy does not currently have sweeping foreign-buyer bans or quotas like some other markets, so the main practical drivers for international buyers remain taxes, residency pathways, and local demand competition from tourism and second-home seekers in areas like Lake Como, Tuscany, and Puglia.

On the mortgage side, the Banca d'Italia housing survey shows that difficulties in obtaining mortgages have eased through 2025, following the ECB's shift away from aggressive rate hikes, which is helping Italian buyers re-enter the market.

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 Italy as of 2026?

Is the renter pool growing faster than new supply in Italy as of 2026?

As of January 2026, renter demand in Italy's major cities is outpacing new rental supply growth, driven by students, young professionals, and affordability constraints that keep people renting longer.

The best signal for renter demand in Italy is the combination of job mobility in cities like Milan and Bologna plus persistent housing affordability challenges that prevent first-time buyers from entering the market.

On the supply side, ISTAT building permits show only modest growth in residential construction, around 1.5% quarter-on-quarter in mid-2025, and a significant share of existing stock is being diverted to short-term lets, which the Banca d'Italia survey says affects about 55% of agencies.

Are days-on-market for rentals falling in Italy as of 2026?

As of January 2026, rental days-on-market in Italy remain tight but are no longer falling as sharply as they were during the most overheated phase, with average discounts on asking rent sitting around 2.8% according to the Banca d'Italia survey.

The difference in letting speed between best areas and weaker areas in Italy is significant: well-located apartments in neighborhoods like Milan's Brera or Rome's Prati can rent within days, while properties in peripheral areas or less desirable buildings may sit for weeks or months.

One common reason days-on-market falls in Italian rental markets is the conversion of long-term rentals to short-term tourist lets, which reduces available supply and forces tenants to compete harder for what remains.

Are vacancies dropping in the best areas of Italy as of 2026?

As of January 2026, vacancy rates in Italy's best-performing rental areas like Milan's Navigli, Isola, and Porta Romana, Rome's Prati and Trastevere, and Florence's Oltrarno remain extremely low due to persistent demand and limited turnover.

The vacancy rate in these prime Italian neighborhoods is effectively near zero for well-priced, well-maintained apartments, while the overall market including peripheral areas has more available units but weaker tenant quality.

One practical sign that the best areas are tightening first in Italy is when landlords start receiving multiple applications within hours of listing, which is now common in student-heavy cities like Bologna's Centro Storico or Milan's university districts.

By the way, we've written a blog article detailing what are the current rent levels in Italy.

Am I buying into a tightening market in Italy as of 2026?

Is for-sale inventory shrinking in Italy as of 2026?

As of January 2026, for-sale inventory in Italy has been shrinking, with the Banca d'Italia survey showing that more agents reported decreases in new sale mandates than increases throughout 2025.

While Italy does not publish a single months-of-supply figure like some markets, the combination of around 5.4 months average selling time and declining new listings suggests supply is tighter than a balanced market, where you would typically see 6 to 9 months of inventory.

The most likely reason inventory is shrinking in Italy is a combination of seller caution, with homeowners reluctant to list without a clear next move, and the diversion of some properties to short-term rental platforms rather than the sale market.

Are homes selling faster in Italy as of 2026?

As of January 2026, homes in Italy are selling in about 5.4 months on average according to the Banca d'Italia survey, which is near historic lows for Italy though slightly slower than the 5.2 months recorded earlier in 2025.

The year-over-year change in days-on-market for Italian property is relatively stable, with only a small uptick from the fastest levels seen in recent quarters, suggesting the market remains tight but is no longer accelerating.

Are new listings slowing down in Italy as of 2026?

As of January 2026, new for-sale listings in Italy have been declining year-over-year, with the Banca d'Italia survey explicitly noting drops in new sale mandates, though we should note that precise percentage changes are difficult to calculate from survey diffusion balances alone.

The seasonal pattern for new listings in Italy typically sees more activity in spring and autumn, with summer and winter being quieter, and current levels appear to be running below what you would expect even accounting for seasonal slowdowns.

The most plausible reason new listings are slowing in Italy is seller caution combined with low mobility, as many Italian homeowners prefer to stay put rather than sell into uncertainty, especially those with favorable existing mortgage terms.

Is new construction failing to keep up in Italy as of 2026?

As of January 2026, new housing construction in Italy is generally failing to keep up with demand in the places people most want to live, even though permits have shown some quarterly increases like the 1.5% rise in Q2 2025 according to ISTAT.

The recent trend in Italian building permits shows modest growth but not enough to meaningfully ease supply constraints in high-demand cities like Milan, Rome, Bologna, and Florence where most buyers are looking.

The single biggest bottleneck limiting new construction in Italy is a combination of complex permitting processes, limited developable land in desirable urban areas, and historically fragmented development financing.

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 Italy as of 2026?

Is resale liquidity strong enough in Italy as of 2026?

As of January 2026, resale liquidity in Italy is generally strong for common property types like apartments and standard houses in liquid areas, with about 86% of surveyed real estate agencies closing at least one sale per quarter according to Banca d'Italia.

The median time-to-sell of around 5.4 months in Italy compares favorably to a healthy liquidity benchmark of 6 to 9 months, meaning well-priced properties in decent locations are selling without excessive waiting periods.

The property characteristic that most improves resale liquidity in Italy is location in a well-connected urban neighborhood with good public transport, since apartments in areas like Milan's Città Studi or Rome's Monteverde consistently attract more buyer interest than comparable properties in peripheral zones.

Is selling time getting longer in Italy as of 2026?

As of January 2026, selling time in Italy has ticked up slightly from its recent lows, moving from about 5.2 months in early 2025 to around 5.4 months by mid-year, though this is a small change rather than a dramatic shift.

The current median time-to-sell in Italy of around 5.4 months sits within a realistic range of about 3 to 8 months across most listings, with well-priced properties in prime locations selling faster and overpriced or niche properties taking longer.

One clear reason selling time can lengthen in Italy is affordability pressure, since when mortgage rates rise or buyer confidence drops, properties at the higher end of local price ranges tend to sit longer as buyers become more selective.

Is it realistic to exit with profit in Italy as of 2026?

As of January 2026, the likelihood of selling an Italian property with a profit is medium to high for buyers who hold for a reasonable period and buy in liquid locations, though Italy is not typically a fast-flip market.

The minimum holding period that most often makes exiting with profit realistic in Italy is around 5 to 7 years, which gives time for modest price appreciation to cover transaction costs and provides a buffer against short-term market fluctuations.

The total round-trip cost drag in Italy, including buying and selling costs like notary fees, registration taxes, and agent commissions, typically runs between 10% and 15% of the property value, which is roughly 25,000 to 40,000 euros on a 250,000 euro property, or about 27,000 to 43,000 USD.

The factor that most increases profit odds in Italy is buying with a real discount from asking price, since the market's average negotiation discount of about 7 to 8% means buyers who secure even larger reductions start with built-in equity from day one.

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 Italy, 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
ISTAT House Price Index	ISTAT is Italy's official statistics office and this is the national house-price index.	We use it as our core truth for nationwide price direction and momentum. We treat it as the baseline and sanity-check it against surveys and international datasets.
Banca d'Italia Housing Market Survey	Italy's central bank runs this long-established survey tracking liquidity indicators directly.	We use it to measure whether Italy feels like a buyer's or seller's market right now. We also pull negotiation discounts, time-on-market, and mortgage access signals.
ISTAT Building Permits	It's official supply-side data straight from the national statistics office.	We use it to see whether new housing supply is accelerating or stalling. We combine it with demand signals to judge if supply is keeping up.
Eurostat House Prices and Rents	Eurostat is the EU's official statistics body providing consistent cross-country data.	We use it as a cross-country reality check on the broader EU cycle. We compare Italy's story with EU trends to avoid tunnel vision.
OECD Housing Prices	The OECD standardizes affordability ratios across countries with transparent methodology.	We use it to judge whether Italy looks stretched versus incomes or rents compared with its own history. We lean on it for overpriced versus fairly priced framing.
BIS Residential Property Prices	The BIS is the global bank for central banks and its housing dataset is widely used in research.	We use it to anchor Italy in a long-run, inflation-adjusted context. We triangulate it with ISTAT's shorter-term moves to assess bubble risk.
ECB Key Interest Rates	The ECB sets euro-area policy rates which drive Italian mortgage pricing with a lag.	We use it to frame the interest-rate backdrop affecting affordability and buyer demand. We translate rates into what they mean for monthly payments.
Gazzetta Ufficiale (Italy Budget Law 2026)	This is Italy's official legal publication, so if it's here, it's real and in force.	We use it to ground any rule change talk in actual law rather than rumors. We only mention policy changes that can plausibly affect households or construction.
ISTAT Quarterly National Accounts	It's the official read on growth which influences jobs, confidence, and housing demand.	We use it as the macro temperature check for Italy heading into 2026. We pair it with housing indicators to judge downside risk.
ISTAT Consumer Prices	Official inflation data matters because real house prices depend on inflation, not just nominal prices.	We use it to convert house-price growth into a rough after-inflation reality. We also use it to interpret rent indexation pressure.
Nomisma Real Estate Observatory	Nomisma is a long-established Italian research institute publishing structured housing outlooks.	We use it to cross-check rent pressure and demand-supply imbalances. We treat it as a reputable private-sector complement to official data.
Tecnocasa Research	It's a major nationwide brokerage processing official transaction data from Agenzia Entrate.	We use it to quantify transaction momentum by major city and nationally. We combine it with Banca d'Italia liquidity metrics to infer market tightness.
Immobiliare.it Insights	It's one of Italy's biggest housing portals publishing structured reports with demand-supply indicators.	We use it to triangulate rent growth and rental market liquidity using high-frequency marketplace signals. We treat it as directional and cross-check against other sources.

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.