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
If you're a foreigner thinking about buying residential property in Italy in 2026, you're probably wondering how the market really works and what to expect.
Italy is not one single market but rather a collection of micro-markets, where conditions in Milan can feel completely different from those in Calabria or inland Sicily.
In this blog post, we break down the current housing prices in Italy, and we constantly update this article to reflect the latest market data.
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 Italy.
How's the real estate market going in Italy in 2026?
What's the average days-on-market in Italy in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Italy is approximately 165 to 185 days, which translates to roughly 5.5 to 6.1 months based on the Bank of Italy's housing market survey data.
However, this national average hides significant variation: in hot markets like Milan or Bologna, homes often sell within 90 to 140 days, while in slower areas such as parts of Southern Italy or inland regions, properties can sit on the market for 210 to 300 days or even longer.
Compared to one or two years ago, days-on-market in Italy has remained relatively stable, hovering near historical lows thanks to steady buyer demand and limited inventory in popular areas, though interest rate movements continue to influence how quickly homes move.
Are properties selling above or below asking in Italy in 2026?
As of early 2026, homes in Italy typically sell below asking price, with the average discount ranging from about 6% to 9% depending on location, property condition, and how realistically the seller priced the home.
The vast majority of Italian properties sell at or below asking, and true bidding wars remain uncommon outside a handful of very specific micro-markets, so you can feel reasonably confident that negotiation room exists in most transactions.
The properties most likely to see above-asking offers or minimal discounts are fully renovated, energy-efficient homes in prime locations such as central Milan, Bologna's historic core, or sought-after neighborhoods in Florence and Rome where demand consistently outstrips supply.
By the way, you will find much more detailed data in our property pack covering the real estate market in Italy.
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 Italy?
What property types dominate in Italy right now?
In Italy in 2026, apartments account for roughly 60% of residential listings, detached houses make up about 25%, and the remaining share is split between townhouses, semi-detached homes, and villas.
Apartments are by far the dominant property type in the Italian market, representing the largest share of both listings and transactions, especially in urban centers and historic towns.
This prevalence of apartments in Italy comes from decades of urban development focused on mid-rise buildings (particularly from the 1960s through the 2000s), combined with historic centers where multi-unit buildings have existed for centuries, making apartment living the cultural and practical norm for most Italians.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Italy right now?
New-build properties represent a relatively small share of the Italian market, estimated at roughly 15% to 20% of available residential listings, because over 80% of transactions involve pre-existing homes according to official Bank of Italy data.
As of early 2026, the highest concentration of new-build developments in Italy can be found in urban regeneration zones such as Milan's former rail yards (Scalo Porta Romana, Scalo Farini), suburban areas near major transit nodes in Rome and Turin, and select coastal developments in regions like Puglia and Sardinia.
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Which neighborhoods are improving fastest in Italy in 2026?
Which areas in Italy are gentrifying in 2026?
As of early 2026, the neighborhoods in Italy showing the clearest signs of gentrification include NoLo (North of Loreto), Corvetto, and Porta Romana in Milan, along with Ostiense and Pigneto in Rome, Aurora in Turin, and San Giovanni a Teduccio in Naples.
The visible changes signaling gentrification in these areas include the arrival of specialty coffee shops and coworking spaces, renovation of older apartment buildings with upgraded facades and energy-efficient windows, a growing presence of young professionals and international residents, and the conversion of former industrial buildings into loft-style housing or creative studios.
Over the past two to three years, these gentrifying neighborhoods in Italy have seen estimated price appreciation of roughly 8% to 15%, with areas like Milan's Porta Romana and Rome's Ostiense at the higher end due to specific infrastructure and development catalysts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Italy.
Where are infrastructure projects boosting demand in Italy in 2026?
As of early 2026, the top areas in Italy where major infrastructure projects are boosting housing demand include neighborhoods along Milan's M4 metro line (such as Lorenteggio, San Cristoforo, and the Linate corridor), the Scalo Porta Romana area in Milan benefiting from Olympic Village development, and districts near Rome's Metro C expansion toward Piazza Venezia and beyond.
The specific infrastructure projects driving demand include Milan's M4 "Blue Line" connecting 21 stations from Linate Airport to San Cristoforo, the Milano-Cortina 2026 Winter Olympics village at Scalo Porta Romana (which will convert to student housing after the Games), and Rome's Metro C extension currently in executive design for the stretch toward Viale Mazzini.
Timelines vary by project: Milan's M4 is now fully operational, the Olympic Village in Porta Romana will complete its post-Games conversion by 2027-2028, and Rome's Metro C extensions are expected to take several more years with completion of key segments projected for the late 2020s.
In Italy, the typical price impact on nearby properties tends to be 5% to 10% upon project announcement, with an additional 10% to 20% boost upon completion, though the effect varies significantly based on how much the infrastructure improves accessibility and livability in each specific micro-location.
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 Italy?
Do people think homes are overpriced in Italy in 2026?
As of early 2026, the general sentiment among Italian real estate agents and market insiders is that many sellers price their homes too high, with a significant share of failed transactions attributed to the gap between what sellers ask and what buyers are willing to pay.
Locals who argue homes are overpriced in Italy typically point to the disconnect between asking prices and actual household incomes, the fact that negotiated discounts of 7% to 9% are still the norm, and the observation that many listings sit unsold for months because owners refuse to lower prices to market-clearing levels.
On the other hand, those who believe Italian prices are fair or even undervalued counter that limited housing supply in desirable cities, persistently high renovation costs, and strong foreign demand (especially for lifestyle properties) justify current price levels in prime locations.
Italy's price-to-income ratio varies dramatically by city, but in hot markets like Milan, it takes roughly 10 to 14 years of average local income to afford an average apartment, which is significantly higher than the national average of around 7 to 9 years and well above what is considered affordable by international standards.
What are common buyer mistakes people regret in Italy right now?
The most frequently cited buyer mistake in Italy is underestimating renovation costs and timelines, especially for older or historic properties where hidden structural issues, complex bureaucratic permits, and limited availability of skilled contractors can easily double initial budget estimates and add 6 to 12 months to any project.
The second most common regret is failing to research the condominio (building management) rules and financial situation before purchase, which can lead to unpleasant surprises like unexpected facade repair assessments of tens of thousands of euros, restrictions on renting out the property, or ongoing disputes among neighbors that make daily life frustrating.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Italy.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Italy.
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How easy is it for foreigners to buy in Italy in 2026?
Do foreigners face extra challenges in Italy right now?
Foreigners buying property in Italy face a moderately more difficult process than local buyers, primarily due to additional documentation requirements, eligibility checks for non-EU citizens, and the time needed to navigate Italian bureaucracy without fluent language skills.
The key legal consideration for non-EU foreigners is Italy's "reciprocity" rule, which means you can only buy property in Italy if Italian citizens have equivalent property rights in your home country, and this must be verified through the Ministry of Foreign Affairs before proceeding with any purchase.
Beyond the reciprocity check, foreigners in Italy commonly struggle with obtaining a codice fiscale (Italian tax code) remotely, opening an Italian bank account from abroad, getting official documents translated and apostilled, and understanding the notarial system where the notaio plays a much more central legal role than in many other countries.
We will tell you more in our blog article about foreigner property ownership in Italy.
Do banks lend to foreigners in Italy in 2026?
As of early 2026, Italian banks do lend to foreign buyers, but with more conservative terms than they offer residents: most non-resident foreigners can expect loan-to-value ratios of 50% to 60%, meaning you will need to bring a deposit of 40% to 50% of the property price.
Foreign buyers in Italy can typically expect fixed mortgage rates around 3% to 4% for terms of 15 to 25 years, with variable rates indexed to Euribor plus a margin of 1% to 2%, though non-residents often pay slightly higher rates than locals due to perceived currency and enforcement risks.
To get approved, Italian banks typically require foreign applicants to provide 2 to 3 years of tax returns, employment contracts or proof of stable income, certified translations of all foreign documents, proof that total debt payments (including the new mortgage) do not exceed 30% to 35% of net income, and a minimum loan amount (often around 150,000 to 250,000 euros depending on the bank).
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 Italy compared to other nearby markets?
Is Italy more volatile than nearby places in 2026?
As of early 2026, Italy's residential property market tends to be less volatile on a national level than faster-moving markets like Spain or Portugal, but the real risk lies in the stark differences between Italian micro-markets, where Milan can boom while rural areas stagnate.
Over the past decade, Italy experienced more muted price swings than some European peers: while Spain saw strong post-crisis recovery with double-digit growth phases and Portugal's Lisbon market surged dramatically, Italian prices overall stayed relatively flat in real terms, with gains concentrated in a handful of cities like Milan and Bologna.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Italy.
Is Italy resilient during downturns historically?
Italy's property market has historically shown moderate resilience during downturns, with prices adjusting more slowly than in boom-bust markets, though this "stability" also means that recovery periods tend to be longer and gains more modest.
During the most recent major downturn following the 2008 financial crisis, Italian property prices fell approximately 20% to 25% in real terms between 2009 and 2014, and full recovery to pre-crisis levels in nominal terms only occurred in 2024-2025 for the strongest markets like Milan, while many areas have never fully recovered.
The property types and neighborhoods that have historically held value best during Italian downturns are prime central apartments in major job hubs (Milan's Centro, Rome's Prati and Centro Storico), energy-efficient newer buildings, and well-maintained properties in established neighborhoods with strong rental demand from professionals and students.
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How strong is rental demand behind the scenes in Italy in 2026?
Is long-term rental demand growing in Italy in 2026?
As of early 2026, long-term rental demand in Italy is growing strongly in major cities, driven by limited affordable housing supply and a structural shift where more owners prefer short-term tourist rentals, which squeezes the available stock for traditional tenants.
The tenant demographics driving long-term rental demand in Italy include young professionals relocating to job hubs like Milan and Bologna, university students in cities with major campuses (Rome, Florence, Turin, Padua, Bologna), international expats and remote workers seeking lifestyle-oriented locations, and families priced out of homeownership in expensive urban centers.
The neighborhoods with the strongest long-term rental demand in Italy right now include Milan's Navigli, Porta Romana, and Città Studi areas, Bologna's historic center and university district, Rome's Trastevere and Prati, Florence's Sant'Ambrogio and Campo di Marte, and Turin's San Salvario and Crocetta.
You might want to check our latest analysis about rental yields in Italy.
Is short-term rental demand growing in Italy in 2026?
Italy has introduced significant regulatory changes affecting short-term rentals, including the national CIN (Codice Identificativo Nazionale) registration system managed through the Ministry of Tourism portal, a ban on remote self-check-ins in many municipalities, and stricter enforcement that has caused short-term rental occupancy to drop from about 78% to 70% nationwide.
As of early 2026, short-term rental demand in Italy remains solid in tourist-heavy cities, but growth has moderated due to increasing compliance burdens and local restrictions, making the sector less of a guaranteed income stream and more of a professionally managed operation.
Current average occupancy rates for short-term rentals in Italy range from about 60% to 75% depending on location and season, with prime tourist destinations like Venice, Florence, and Rome's historic center at the higher end, and secondary markets or properties farther from attractions at the lower end.
The guest demographics driving short-term rental demand include international tourists (particularly from the US, UK, Germany, and France), domestic Italian travelers seeking alternatives to hotels, business travelers in cities like Milan, and a growing segment of digital nomads and remote workers seeking month-long stays in lifestyle destinations.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Italy.
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 Italy in 2026?
What's the 12-month outlook for demand in Italy in 2026?
As of early 2026, the 12-month demand outlook for residential property in Italy is cautiously positive, with stable buyer interest supported by more predictable mortgage rates and continued international appetite for Italian lifestyle properties, though the market remains highly location-dependent.
The key factors most likely to influence Italian housing demand over the next 12 months include European Central Bank interest rate decisions (which directly affect mortgage affordability), Italy's economic growth trajectory (forecast around 1% GDP growth), the Milano-Cortina 2026 Winter Olympics effect on Milan's market, and any changes to tax incentives for renovations or first-time buyers.
The forecasted price movement for Italy over the next 12 months is a national average increase of approximately 2% to 4%, with Milan and other strong markets potentially seeing 4% to 7% growth, while peripheral and rural areas may stay flat or even decline slightly.
By the way, we also have an update regarding price forecasts in Italy.
What's the 3-5 year outlook for housing in Italy in 2026?
As of early 2026, the 3-5 year outlook for Italian housing points to a "two-speed market" where prime urban locations (Milan, Bologna, parts of Rome and Florence) continue appreciating steadily at 2% to 4% annually, while many smaller towns and depopulating areas see little growth or gradual decline.
The major development projects expected to shape Italy over the next 3-5 years include the completion of Milan's rail yard regeneration projects (Scalo Farini, Scalo Romana, Scalo Greco), Rome's Metro C expansion reaching new central districts, high-speed rail improvements connecting secondary cities, and ongoing urban renewal efforts in Naples and Turin's former industrial zones.
The single biggest uncertainty that could alter Italy's 3-5 year housing outlook is the trajectory of European interest rates: if inflation reignites and the ECB raises rates significantly, affordability could drop sharply and transaction volumes could freeze, while continued rate stability or cuts would support steady price appreciation in desirable areas.
Are demographics or other trends pushing prices up in Italy in 2026?
As of early 2026, demographic trends in Italy are creating mixed price pressures: internal migration toward job-rich cities is pushing prices up in urban centers, while the country's overall aging and declining population (projected to fall from about 59 million toward 58 million by 2030) is putting downward pressure on prices in peripheral and rural areas.
The specific demographic shifts affecting Italian property prices include young professionals concentrating in Milan and Bologna for career opportunities, university students clustering in major campus cities, retirees from Northern Europe seeking sunny second homes in Puglia and Sicily, and Italian families forming smaller households that increase per-capita housing demand in urban areas.
Beyond demographics, non-demographic trends pushing Italian prices include remote work enabling higher-earning professionals to relocate to lifestyle destinations like Tuscany or the lakes region, continued foreign investment in Italian real estate as a "safe haven" asset denominated in euros, and new energy efficiency regulations that are creating a price premium for renovated, high-energy-class properties.
These demographic and trend-driven price pressures in Italy are expected to continue for at least the next 5 to 10 years, though the polarization between winning and losing markets will likely intensify as population decline accelerates in areas without strong job creation or lifestyle appeal.
What scenario would cause a downturn in Italy in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Italy would be a combination of sharply rising interest rates (if the ECB reverses course due to inflation), a broader European recession that increases unemployment in Italy's key job markets, or a significant tightening of bank lending standards that freezes mortgage availability.
The early warning signs that such a downturn is beginning in Italy would include time-to-sell stretching well beyond 6 months nationally (toward 8-9 months), average discounts from asking price widening past 10%, a sustained drop in mortgage application volumes, and a noticeable increase in listings as worried sellers try to exit before prices fall further.
Based on historical patterns, a potential Italian housing downturn could realistically see nominal price declines of 10% to 20% over 3 to 5 years in affected areas, similar to the 2009-2014 correction, with peripheral markets and overpriced segments hit hardest while prime central locations in Milan and Rome would likely experience smaller declines and faster recoveries.
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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 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 | Italy's national statistics agency publishes the official house price index used for international comparisons and government policy. | We used it to anchor official price growth trends entering 2026. We then compared these figures with Eurostat data to validate direction and magnitude across the country. |
| Bank of Italy Housing Survey | The Italian central bank runs this quarterly survey with OMI and Tecnoborsa using a consistent, nationally representative methodology. | We used it for market temperature metrics including time-to-sell, discounts from asking, and agent sentiment. We treated it as Italy's most reliable "market liquidity dashboard." |
| Agenzia delle Entrate (OMI) | OMI is the Italian government's official real estate observatory and zoning system used nationwide for valuations and tax assessments. | We used it to explain Italy's micro-market nature and neighborhood-level price ranges. We referenced OMI zones when discussing specific location dynamics. |
| Eurostat House Price Index | Eurostat harmonizes national statistics methods so you can compare Italy with other European countries on a consistent basis. | We used it to compare Italy's price momentum and volatility versus Spain, France, Portugal, and the euro area average. We used it as a cross-check against ISTAT's national index. |
| European Central Bank | The ECB is the primary source for euro-area policy rates, which directly drive Italian mortgage pricing and housing affordability. | We used it to anchor the interest rate backdrop for 2026 affordability analysis. We built short-term demand scenarios based on ECB rate guidance. |
| Ministry of Foreign Affairs | This is the official authority explaining how Italy assesses reciprocity for foreign civil rights including property ownership. | We used it to explain the main legal checkpoint for non-EU foreigners buying in Italy. We emphasized verifying eligibility before spending on due diligence. |
| Milan AMAT | AMAT is the City of Milan's official mobility agency publishing verified infrastructure project details and timelines. | We used it to identify where real accessibility improvements are happening in Milan. We justified specific neighborhood demand increases based on M4 station locations. |
| Scalo Porta Romana Project | This is the official project site for Milan's Olympic Village with verified delivery dates and post-Games conversion plans. | We used it to tie demand in Porta Romana to a specific, dated development pipeline. We explained the neighborhood transformation catalyst with concrete timeline details. |
| Ministry of Tourism (BDSR) | This is the national portal for Italy's CIN identifier system affecting all tourist rental operations. | We used it to explain the regulatory direction for short-term rentals. We assessed compliance risk and operational considerations for rental investors. |
| ISTAT Population Projections | This is the national statistics agency's official long-run demographic baseline used for government planning. | We used it to discuss Italy's structural demand forces including aging and population decline. We built the 3-5 year outlook logic distinguishing job hubs from shrinking towns. |
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