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
Where are the best places to invest in Italy right now? Is Milan still the top pick, or are cities like Naples, Bologna, and Palermo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Italy and explain why they’re worth your attention in 2025. If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
How this content was created 🔎📝
1) Perugia's real estate market is booming thanks to its vibrant student population and historic city center appeal
Perugia is buzzing with life, thanks to its vibrant student population.
The University of Perugia, with 26,732 students enrolled as of February 2024, injects energy into the city, creating a strong demand for rental properties. This demand is a key driver of the real estate market, making it attractive for investors looking to capitalize on the rising property prices.
In 2024, property prices in Perugia saw a 7.72% increase from the previous year, averaging €1,284 per square meter. This rise is fueled by high rental yields, with a three-room apartment renting for about €391 per month and a furnished four-room apartment going for around €571. These numbers make investing in Perugia's real estate market quite appealing.
Perugia's historic city center adds another layer of allure. It's a cultural and architectural treasure, enhanced by government efforts to preserve and promote its charm. This makes the city center a magnet for tourists and potential property buyers alike.
The combination of a lively student scene and a captivating historic center makes Perugia a hot spot for real estate investment. The city's unique blend of education and history creates a dynamic environment that continues to draw interest.
Sources: Immobiliare.it, Edurank, Studentsville, GoWithGuide
2) Trieste is a real estate hot spot due to its strategic location near Slovenia and growing cultural reputation
Trieste is quickly becoming a real estate hot spot for several compelling reasons.
Its strategic location near the Slovenian border makes it a magnet for investors and expatriates. This prime position offers easy access to diverse cultures and markets, enhancing its allure. Imagine living in a place where you can enjoy Italian charm and hop over to Slovenia for a weekend getaway.
Trieste is not just about location; it's also a cultural powerhouse. The city has been buzzing with cultural events and festivals, thanks to significant investments in museums and theaters. This cultural vibrancy is pulling more people into the area, which naturally boosts the demand for real estate.
The real estate market in Trieste is on the rise. As of November 2024, the average property price hit €2,340 per square meter, a 5.03% increase from the previous year. This uptick in property prices is a clear sign of growing interest and investment, making Trieste a desirable place to settle.
Investors are taking note of Trieste's potential. The city has seen a €30 million investment announced in a new budget variation, which is expected to further enhance its infrastructure and appeal. Such financial backing is a testament to the city's promising future.
With its unique blend of strategic location and cultural richness, Trieste is poised to become one of the most sought-after destinations for real estate enthusiasts. The city's growth is not just a trend; it's a transformation that offers exciting opportunities for those looking to invest or relocate.
Sources: Immobiliare.it, All About Italy, Intrieste.com
Everything you need to know is included in our Property Pack for Italy
3) Cagliari Sardinia attracts with low property prices and high rental yields especially in coastal areas
Cagliari, the capital of Sardinia, is catching eyes for its affordable property prices and impressive rental yields, especially along the coast.
In 2024, buying a home in Cagliari cost about €2,547 per square meter, which is quite a bargain compared to other Italian cities. This affordability, paired with Sardinia's stunning landscapes and growing tourist appeal, makes it a hot spot for potential buyers.
The rental scene in Cagliari is buzzing, with average rents hitting €13.38 per month per square meter in 2024, up by 15.15% from the previous year. The coastal areas are particularly popular, thanks to the island's tourist attractions, leading to a steady stream of rental income that can help balance out the high taxes property owners face.
Real estate in Cagliari is on the rise, with the market showing above-average growth in turnover and occupancy rates. Real estate agencies report a 21.32% increase in turnover and a 39.72% occupancy rate in 2024 compared to 2023. This boom is fueled by the thriving tourism sector, with the Cagliari port expecting over 500,000 cruise passengers in 2024, breaking previous records.
For those considering an investment, Cagliari offers a unique blend of affordability and potential for high returns. The island's natural beauty and cultural richness continue to draw tourists, ensuring a steady demand for rental properties.
With the real estate market heating up and tourism on the rise, Cagliari presents a promising opportunity for property buyers looking for value and growth potential in a picturesque setting.
Sources: Sardinia Property Market Positive Forecast for 2024, Cagliari Port Predicts 2024 Will Be Boom Year for Cruise Tourism, Why Investors Are Flocking to Sardinia’s Market in 2025?
4) Bologna's Bolognina neighborhood property values are surging due to city center proximity and urban renewal projects
Bolognina is becoming a hot spot for property buyers.
In recent years, property values in Bolognina have surged, thanks to its prime location near Bologna's city center and a wave of urban renewal projects. By November 2024, the average price per square meter hit €3,546, which, while still below the Centro's €4,288, shows Bolognina's rising popularity. Its closeness to key transport hubs like Bologna Centrale makes it a convenient choice for both residents and investors.
The neighborhood's transformation is largely due to ambitious urban renewal efforts. Projects like the ConVivere Bolognina plan have breathed new life into the area, with new community centers and public spaces enhancing its charm. These developments have not only improved the quality of life but also increased the area's attractiveness to potential buyers.
Infrastructure upgrades, including the construction of a high-speed railway, have further boosted Bolognina's appeal. These changes have made the neighborhood more connected, drawing in those who value easy access to the rest of the city and beyond. The combination of these factors has made Bolognina a desirable place to live and invest.
Local insiders note that Bolognina's growth is not just about location but also about lifestyle. The neighborhood offers a unique blend of modern amenities and traditional charm, making it a vibrant community. This mix is particularly appealing to young professionals and families looking for a dynamic yet comfortable living environment.
As Bolognina continues to evolve, its property market is expected to remain strong. The ongoing urban renewal projects and infrastructure improvements are likely to keep attracting interest from buyers and investors. This trend suggests that Bolognina is on its way to becoming one of Bologna's most sought-after neighborhoods.
Sources: Immobiliare.it, Abitare, HousingAnywhere
5) Bari attracts investors with affordable property prices and rising rental demand from students and young professionals
Bari is catching the eye of investors thanks to its affordable property prices and growing rental demand.
In November 2024, the average price for residential properties in Bari was €2,166 per square meter, a bargain compared to other Italian cities. This makes Bari a hot spot for those looking to invest without breaking the bank, with the potential for property values to rise.
The city is buzzing with property transactions, adding to the overall growth of Italy's real estate market. In the second quarter of 2024, around 186,000 homes were sold in Italy, and Bari was a key player in this surge. This shows a clear uptick in interest in Bari's real estate scene.
Bari's universities are seeing more students, especially in areas like Murat and Carrassi. These neighborhoods are student favorites because they're close to schools and offer affordable living. This influx of students is driving up rental demand, making it a golden opportunity for property investors.
Young professionals are also flocking to Murat, drawn by its lively vibe and social life. This trend is further boosting the rental market as they look for convenient and exciting places to live. The mix of affordable property prices and rising rental demand from students and young professionals makes Bari a prime spot for investors.
Sources: Idealista, Rent Your Nest, Immobiliare, Hurghadians Property
Get to know the market before you buy a property in Italy
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Taranto's real estate market is booming with urban regeneration and infrastructure plans underway
The city of Taranto is catching the eye of potential property buyers due to exciting urban regeneration plans.
Imagine a vibrant waterfront area bustling with shops, cultural spots, and leisure activities. That's the vision for Taranto, thanks to a project called “the city of the two seas.” This initiative is a big deal for the city, aiming to revitalize its urban landscape and breathe new life into the community.
Backing these plans is a hefty financial investment. The Italian government and the Taranto Port Authority have pooled together €32 million to transform the waterfront, making it a seamless link between the port and the city. On top of that, €88 million from EU funds is earmarked for a new University campus, focusing on cutting-edge fields like biotechnologies and green technology.
Real estate agents are buzzing about the increased interest in Taranto. Property prices are on the rise, with the average residential property costing €1,057 per square meter as of November 2024. This uptick in prices signals a growing demand for homes in the area.
Local media is abuzz with the positive changes these developments are bringing to Taranto's economy and urban environment. The mix of urban renewal, infrastructure upgrades, and climbing property values paints a bright future for the city's real estate market.
Sources: Immobiliare.it, Real Asset Insight
7) Parma's real estate demand is rising due to its strong economy and prestigious food and cultural institutions
Parma is catching the eye of real estate buyers thanks to its thriving local economy and cultural charm.
Located in the heart of the Emilia-Romagna region, Parma boasts a robust economy that’s driving up property values. The city’s economic vitality is evident as property prices have climbed to €2,382 per square meter, reflecting a nearly 8% increase from last year. This makes Parma a hot spot for those looking to invest in a stable and growing market.
Parma isn’t just about numbers; it’s a city with a soul, celebrated for its world-famous culinary heritage. Known for delicacies like Parmesan cheese and Prosciutto di Parma, the city has earned the title of a UNESCO Creative City of Gastronomy. This global recognition not only draws food lovers but also boosts the local economy, making it a magnet for new residents and investors.
The city’s cultural scene is equally enticing, with landmarks such as the Palazzo della Pilotta and Teatro Regio adding to its allure. These attractions contribute to a lively atmosphere that appeals to both tourists and potential homeowners. The blend of culture and cuisine makes Parma a unique place to call home.
Parma’s charm is further amplified by its vibrant lifestyle, where the local economy thrives alongside cultural institutions. This synergy creates a dynamic environment that’s hard to resist for those seeking a blend of tradition and modernity. The city’s appeal is not just in its economic prospects but also in its ability to offer a rich, fulfilling lifestyle.
With its strong economy and cultural prestige, Parma is becoming a top choice for real estate investment. The city’s unique combination of economic growth and cultural richness makes it an attractive option for those looking to invest in a promising market.
Sources: Immobiliare.it, Gruppo UNA, Evendo
8) Lecce, the "Florence of the South," is a real estate hotspot due to its baroque architecture and tourism
Lecce, known as the "Florence of the South," is becoming a real estate hotspot.
In 2023 and 2024, the average sale price in Lecce's province climbed to €1,223 per square meter, showing a 4.80% increase from the previous year. This uptick in prices highlights a growing interest in the area. The charm of Lecce lies in its stunning baroque architecture, which is a major draw for both tourists and potential homeowners.
Trendy spots like Lecce and Ostuni are seeing a rise in real estate transactions, indicating a stable growth in the market. This surge is fueled by a rising demand for properties, as more people are captivated by Lecce's unique blend of history and modernity. The city's cultural richness is a magnet for those looking to invest in a place with character.
Tourism is booming, with Lecce gaining more media attention as a must-visit destination. This increased visibility has led to a steady influx of visitors eager to experience the city's charm. To keep up with this demand, there's been a significant boost in local infrastructure, including new hotels and accommodations, making it even more appealing for property buyers.
Investors are taking note of Lecce's potential, as the city continues to attract tourists and new residents alike. The combination of its historical allure and modern amenities makes it a prime location for real estate investment. With more people discovering Lecce's beauty, the demand for property is expected to keep rising.
As Lecce's popularity grows, so does the interest in its real estate market. The city's unique appeal, coupled with its strategic investments in infrastructure, positions it as a top choice for those looking to buy property in Italy. The ongoing development and rising tourist numbers are clear indicators of Lecce's promising future in the real estate sector.
Sources: Immobiliare.it, August Collections, Statista
Everything you need to know is included in our Pack for Italy
9) Trento attracts real estate investors with high quality of life and a major university driving rental demand
Trento is quickly becoming a hotspot for real estate investors due to its high quality of life and the presence of a major university.
Ranked among the best places to live in Italy, Trento naturally draws those looking to invest in property. The town's residents enjoy a positive environment, with high satisfaction in public services and amenities. This makes it an attractive option for both investors and potential residents.
The University of Trento is a key player in boosting rental demand. As one of Italy's top universities, it attracts students and faculty from around the globe. In the 2023/2024 academic year, the university saw a surge in student enrollment, with 16,473 students, including 3,672 first-year students. This influx creates a steady demand for rental properties, making Trento a promising market for real estate investors.
Trento's real estate market is further strengthened by rising rental yields, driven by the university's growing demand for rentals. The town's strategic location and excellent connectivity to major cities like Verona and Milan enhance its appeal to both renters and buyers. This connectivity makes it easy for residents to commute or travel, adding to the town's attractiveness.
Trento is also known for its environmental sustainability and green initiatives, which attract eco-conscious investors and renters. These efforts contribute to the town's overall charm and make it a desirable place to live. The focus on sustainability aligns with the values of many modern investors and residents, adding another layer of appeal.
With its combination of a thriving university, strategic location, and commitment to sustainability, Trento offers a unique opportunity for real estate investment. The town's ability to attract a diverse range of people, from students to eco-conscious individuals, ensures a dynamic and growing market.
Sources: EduRank, Trento Info, Portico Invest, UniTrento
10) Matera's ancient cave dwellings drive a real estate boom as it becomes a popular tourist destination
Matera's ancient cave dwellings are drawing tourists and sparking a real estate boom.
With its unique architecture and rich history, Matera has become a must-visit spot, attracting people from all over. This influx of tourists has naturally led to a higher demand for places to stay, pushing up property prices. The town's charm lies in its Sassi, the ancient caves where visitors love to stay, giving them a taste of local life.
As a result, the average price of second-hand homes in Matera has shot up, mirroring this growing interest. Property transactions have increased, adding to the overall growth of Italy's real estate market. Short-term rentals are on the rise too, as tourists prefer to immerse themselves in the authentic Matera experience.
Media and social media have played a big part in putting Matera on the map. The town has been featured in travel guides and top destination lists, which has led to more tourists and longer stays. Cultural events and festivals are also a big draw, making Matera even more appealing and boosting investments in the hospitality sector.
Locals and investors are noticing the surge in tourist arrivals, which is transforming Matera into a vibrant hub. The town's newfound fame is not just a passing trend; it's a growing opportunity for those looking to invest in property. The buzz around Matera is palpable, with its mix of history, culture, and modern appeal.
Sources: Idealista, Continuous Roamer, Smithsonian Magazine
11) Reggio Emilia is booming in real estate thanks to its prime spot between Milan and Bologna and strong industry
Reggio Emilia is gaining traction in the real estate market due to its strategic location and industrial strength.
Situated perfectly between Milan and Bologna, Reggio Emilia serves as a key logistical hub that attracts businesses and investors alike. This prime location not only supports industrial growth but also boosts the demand for real estate in the area.
The industrial sector here is booming, with a strong presence in ceramics, electronics, machinery, and finance. This thriving environment draws people from various regions, adding to the area's economic vitality. New developments in mechanics and information technology are also leading to the establishment of new companies, further enhancing the industrial landscape.
As a result, property prices in Reggio Emilia are on the rise. The average price for residential properties has reached €1,932 per square meter as of November 2024, marking a 3.59% increase from the previous year. This upward trend reflects the growing interest in both residential and commercial properties.
Rental prices are also climbing, with rates now at €9.93 per month per square meter. This increase indicates a strong demand for rental properties, driven by the influx of people and businesses to the area.
Sources: Immobiliare.it, Wikipedia, BusinessRE
Buying real estate in Italy can be risky
An increasing number of foreign investors are showing interest in Italy. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Sanremo's real estate is booming due to its mild climate famous music festival and proximity to the French Riviera
Sanremo is seeing a real estate boom thanks to its unique charm and strategic location.
One of the main draws is its mild climate, making it a more appealing place to live than many other parts of Italy. This pleasant weather not only attracts tourists but also potential residents, boosting the town's overall appeal.
The famous Sanremo Music Festival is another big factor. In 2024, the festival's final drew over 14 million viewers, which is a testament to its popularity. This event significantly boosts the local economy, especially through advertising revenue, and causes accommodation prices to soar during the festival week, showing just how attractive the town is.
Sanremo's proximity to the French Riviera is a major plus, drawing international buyers, particularly from France. This location advantage makes the town's real estate market even more appealing to those looking for a strategic investment.
The combination of cultural events, a favorable climate, and a strategic location makes Sanremo a hotspot for tourists and property investors alike. The town's ability to draw large crowds and international interest is a testament to its growing allure.
With its unique blend of attractions, Sanremo is becoming a sought-after destination for those looking to invest in property. The town's charm and strategic advantages are hard to resist for both tourists and potential residents.
Sources: Immobiliare.it, FGN Consulting, Kalinka Immobiliare
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.