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Everything you need to know before buying real estate is included in our Italy Property Pack
Italy's residential property market in early 2026 is a tale of two realities: nationally, prices are rising steadily, but the real story plays out at the neighborhood level, where some areas offer strong yields while others see prices stagnate or even decline.
We constantly update this blog post to reflect the latest data, regulatory changes, and emerging opportunities across Italian cities, so you always have fresh, actionable information at your fingertips.
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.
What's the Current Real Estate Market Situation by Area in Italy?
Which areas in Italy have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Italy are Milan's Centro Storico (around 11,000 euros per square meter), Rome's Centro Storico near Piazza di Spagna (approaching 8,500 euros per square meter), and Venice's San Marco-Rialto zone on the historic island (over 6,000 euros per square meter).
In these prime Italian neighborhoods, typical prices range from 6,000 to over 11,000 euros per square meter, with fully renovated luxury apartments in Milan's Centro Storico sometimes exceeding 15,000 euros per square meter.
Each of these high-priced areas commands a premium for distinct reasons:
- Milan Centro Storico: Italy's economic capital with corporate headquarters, fashion houses, and severe supply constraints in historic buildings.
- Rome Centro Storico (Piazza di Spagna area): UNESCO World Heritage status, proximity to major monuments, and strong demand from international buyers and tourists.
- Venice San Marco-Rialto: Unique lagoon setting with no new construction possible, attracting wealthy second-home buyers and heritage investors.
Which areas in Italy have the most affordable property prices in 2026?
As of early 2026, the most affordable residential property areas in major Italian cities include Milan's Baggio neighborhood (around 3,000 euros per square meter), Rome's eastern periphery like Tor Bella Monaca and Lunghezza (1,800 to 2,200 euros per square meter), and Venice's mainland districts of Mestre-Marghera (around 2,500 euros per square meter).
In these more affordable Italian neighborhoods, typical prices range from 1,800 to 3,200 euros per square meter, making them accessible entry points for budget-conscious investors.
The main trade-off in these lower-priced areas varies by location: Milan's Baggio offers improving metro access but feels far from the city's lifestyle amenities; Rome's eastern periphery suffers from longer commute times and fewer services; and Venice's Mestre lacks the historic charm and tourist appeal of the lagoon island, which limits short-term rental potential.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Italy Offer the Best Rental Yields?
Which neighborhoods in Italy have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods with the highest gross rental yields in Italy include Milan's Baggio (approximately 6.8% gross), Rome's Roma est-Autostrade area (around 6.8% gross), Rome's Garbatella-Ostiense (approximately 6% gross), and Naples' Ponticelli-San Giovanni a Teduccio (around 7% gross).
Across Italy's major cities, typical gross rental yields range from 3.5% in prime central locations to 7% or more in well-connected peripheral neighborhoods, with most investment-grade properties falling between 4.5% and 6%.
These high-yielding Italian neighborhoods deliver stronger returns because of specific local dynamics:
- Milan Baggio: Lower purchase prices around 3,000 euros per square meter combined with rents that remain solid due to new metro line M1 extension access.
- Rome Roma est-Autostrade: Entry prices under 2,000 euros per square meter while rental demand stays steady from workers in nearby logistics and commercial zones.
- Rome Garbatella-Ostiense: Growing popularity among young professionals and creatives, with Metro B access and Roma Tre University nearby boosting tenant demand.
- Naples Ponticelli: Very low purchase prices paired with stable local rental demand from families priced out of central Naples neighborhoods.
Finally, please note that we cover the rental yields in Italy here.
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Which Areas in Italy Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Italy perform best on Airbnb in 2026?
As of early 2026, the neighborhoods that perform best on Airbnb in Italy include Rome's Centro Storico and Trastevere (occupancy rates around 70% to 78% with nightly rates of 120 to 180 euros), Florence's Centro and Oltrarno (similar occupancy with rates of 100 to 150 euros), and Milan's Duomo-Brera area (strong business and event-driven demand with rates of 100 to 160 euros).
In these top-performing Italian short-term rental neighborhoods, well-managed properties typically generate monthly revenues ranging from 2,500 to 4,500 euros, though this varies significantly by season and property quality.
Each of these neighborhoods outperforms others for short-term rentals due to specific factors:
- Rome Trastevere: Walkable cobblestone streets, authentic trattorias, and proximity to major attractions create consistent tourist demand year-round.
- Rome Centro Storico (Pantheon-Navona area): Prime location within walking distance of the Colosseum, Vatican, and main tourist sites ensures high occupancy.
- Florence Oltrarno (Santo Spirito area): Artisan workshops, local wine bars, and Ponte Vecchio proximity attract travelers seeking authentic Florentine experiences.
- Milan Duomo-Brera: Fashion weeks, design fairs, and corporate events create demand spikes that complement leisure tourism.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Italy.
Which tourist areas in Italy are becoming oversaturated with short-term rentals?
The three tourist areas in Italy that are becoming most oversaturated with short-term rentals are Rome's Centro Storico (particularly the Pantheon-Trevi-Navona triangle), Florence's UNESCO-protected historic center, and Venice's San Marco-Rialto zone on the historic island.
In these oversaturated Italian areas, short-term rental density is extremely high: Florence's centro storico has seen new tourist rental permits banned since May 2025, Rome's central districts have thousands of active listings competing for guests, and Venice's historic island has one of the highest STR-to-resident ratios in Europe.
The clearest indicator that these Italian areas have reached oversaturation is the combination of regulatory crackdowns (Florence's ban on new STR permits, Milan's keybox restrictions, Venice's in-person check-in requirements) and declining occupancy rates, which dropped from 78% to 70% nationwide according to recent AirDNA data cited in industry reports.
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.
Which Areas in Italy Are Best for Long-Term Rentals?
Which neighborhoods in Italy have the strongest demand for long-term tenants?
The neighborhoods with the strongest demand for long-term tenants in Italy include Rome's Garbatella-Ostiense, Rome's Nomentano-Tiburtino, Milan's Città Studi-Lambrate, and Milan's Garibaldi-Porta Venezia area.
In these high-demand Italian neighborhoods, properties typically rent within 40 to 60 days, which is notably faster than the citywide averages of 80 to 90 days, and vacancy rates remain low at 5% to 10%.
The tenant profiles driving demand in these Italian neighborhoods are distinct:
- Rome Garbatella-Ostiense: Young professionals and creative workers attracted by Roma Tre University, Gazometro cultural events, and trendy restaurants.
- Rome Nomentano-Tiburtino: Students and researchers near Sapienza University, plus commuters using Tiburtina station for regional and high-speed rail.
- Milan Città Studi-Lambrate: University students from Politecnico and Statale, plus young professionals in nearby tech and design companies.
- Milan Garibaldi-Porta Venezia: International executives, diplomats, and professionals working in the Porta Nuova business district and fashion industry.
What makes these Italian neighborhoods especially attractive to long-term tenants is their combination of excellent Metro access (Rome's Line B, Milan's M1 and M2), proximity to major employment centers, and vibrant local amenities including cafes, restaurants, and cultural venues.
Finally, please note that we provide a very granular rental analysis in our property pack about Italy.
What are the average long-term monthly rents by neighborhood in Italy in 2026?
As of early 2026, average monthly rents in Italy vary dramatically by neighborhood: Milan's Centro Storico averages around 33.80 euros per square meter monthly (approximately 2,500 euros for a 75-square-meter apartment), Rome's Centro averages about 30.70 euros per square meter (around 2,300 euros for the same size), and Florence's Centro ranges from 25 to 30 euros per square meter.
For entry-level apartments in the most affordable Italian neighborhoods, typical monthly rents range from 700 to 1,000 euros for a one-bedroom unit in areas like Milan's Baggio (around 16.90 euros per square meter), Rome's eastern periphery (around 11.60 euros per square meter), or Naples' outer districts.
In mid-range Italian neighborhoods, tenants can expect to pay between 1,200 and 1,800 euros monthly for a two-bedroom apartment in areas like Milan's Città Studi (around 20 euros per square meter), Rome's Garbatella-Ostiense (around 18 euros per square meter), or Florence's Campo di Marte.
In the most expensive Italian neighborhoods, high-end apartments command 2,500 to 4,000 euros monthly, with Milan's Centro Storico, Rome's Parioli, and Florence's Centro representing the top tier of the rental market.
You may want to check our latest analysis about the rents in Italy here.
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Which Are the Up-and-Coming Areas to Invest in Italy?
Which neighborhoods in Italy are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Italy that are currently gentrifying and attracting new investors include Milan's Porta Romana-Ripamonti area (linked to the 2026 Olympic Village), Milan's Scalo Farini-adjacent zone north of Isola, Rome's Garbatella-Ostiense, and Turin's future Metro Linea 2 corridor.
These gentrifying Italian neighborhoods have experienced annual price appreciation rates ranging from 8% to 11% recently, with Rome's Garbatella-Ostiense leading at approximately 10.6% year-on-year growth and Milan's Corvetto-Rogoredo area posting around 3.7% gains in 2025.
Which areas in Italy have major infrastructure projects planned that will boost prices?
The areas in Italy with major infrastructure projects expected to boost property prices include Milan's Scalo Porta Romana (Olympic Village conversion), Milan's Scalo Farini regeneration zone, Turin's Metro Linea 2 corridor, and Rome's Giubileo-linked improvement areas.
In Milan, the Scalo Porta Romana Olympic Village will be converted into student housing and residential units after the 2026 Winter Olympics, while the Scalo Farini regeneration will create new public housing and mixed-use development north of the city center. In Turin, the Metro Linea 2 will connect new station areas and reshape rental demand. In Rome, Giubileo 2025 infrastructure works have improved Metro Line C access and public spaces in several neighborhoods.
Historically in Italy, areas near completed major infrastructure projects have seen price increases of 10% to 25% above citywide averages, with Milan's new M4 metro line already driving notable appreciation in districts like Forlanini (up 15.4% in 2024) and connecting areas.
You'll find our latest property market analysis about Italy here.
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.
Which Areas in Italy Should I Avoid as a Property Investor?
Which neighborhoods in Italy with lots of problems I should avoid and why?
The neighborhoods in Italy that investors should generally approach with caution include Rome's far eastern periphery (Tor Bella Monaca, Lunghezza), Milan's isolated outer zones without metro access, and short-term-rental-heavy tourist cores where enforcement is tightening (like Florence's centro storico for new STR investments).
Each of these Italian areas presents specific challenges:
- Rome Tor Bella Monaca: Poor public transport connections, limited local services, and weaker resale liquidity make exits difficult.
- Milan isolated outer zones: Areas far from metro lines suffer from longer vacancy periods and tenant pools limited to price-sensitive renters.
- Florence Centro Storico (for new STR): New short-term rental permits have been banned since May 2025, eliminating the STR income strategy for new buyers.
- Venice San Marco-Rialto (for STR-dependent strategies): Heavy regulatory pressure, in-person check-in requirements, and oversaturation create operational friction.
For these Italian neighborhoods to become viable investment options, they would need significant improvements: better transit connections for peripheral areas, regulatory stabilization for STR-heavy zones, and improved local amenities and services to attract quality tenants.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Italy.
Which areas in Italy have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Italy with stagnant or declining property prices include Rome's Trigoria-Castel di Leva (down 4.3% year-on-year), Rome's Malagrotta-Casal Lumbroso-Ponte Galeria (down 2.7%), Milan's Vialba-Gallaratese (down 2.7%), and some peripheral zones in Naples.
These underperforming Italian areas have experienced price declines or stagnation of 2% to 5% over the past year, while their respective city averages have grown between 2% and 7%.
The underlying causes of price stagnation or decline in these Italian areas are specific to each location:
- Rome Trigoria-Castel di Leva: Distance from metro lines and limited employment centers reduce appeal for both tenants and buyers.
- Rome Malagrotta area: Proximity to waste management facilities and industrial zones creates negative perception among potential residents.
- Milan Vialba-Gallaratese: Competition from nearby regeneration projects draws demand away, leaving older housing stock less attractive.
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Which Areas in Italy Have the Best Long-Term Appreciation Potential?
Which areas in Italy have historically appreciated the most recently?
The areas in Italy that have historically appreciated the most over the past five to ten years include Milan's Centro Storico (up over 25% in five years), Rome's Garbatella-Ostiense (up approximately 10% year-on-year recently), Florence overall (strong year-on-year growth), and Bologna (up around 18% between 2019 and 2024).
Here are the approximate appreciation figures for these top-performing Italian areas:
- Milan Centro Storico: Up approximately 10.3% in 2025 alone, continuing a multi-year run of strong appreciation.
- Rome Garbatella-Ostiense: Up approximately 10.6% year-on-year, the fastest-growing Rome neighborhood.
- Rome Centro Storico: Up approximately 9% year-on-year, driven by Jubilee-related attention and international buyer demand.
- Florence Gavinana-Galluzzo: Among the faster-appreciating Florence zones in recent portal data.
The main driver behind above-average appreciation in these Italian areas has been the combination of severe supply constraints in historic centers, strong international demand (especially from American and Northern European buyers), and infrastructure improvements like Milan's M4 metro line and Rome's Metro Line C extensions.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Italy.
Which neighborhoods in Italy are expected to see price growth in coming years?
The neighborhoods in Italy expected to see the strongest price growth in the coming years include Milan's Porta Romana-Ripamonti (Scalo Porta Romana area), Milan's Scalo Farini influence zone, Turin's future Metro Linea 2 station areas, and Rome's well-connected emerging neighborhoods like Ostiense.
Here are the projected annual price growth percentages for these high-potential Italian neighborhoods:
- Milan Porta Romana-Ripamonti: Expected 5% to 8% annual growth, boosted by Olympic Village conversion and post-event residential demand.
- Milan Scalo Farini zone: Expected 4% to 6% annual growth as city-level regeneration plans progress and adjacent residential pockets reprice.
- Turin Metro Linea 2 corridor: Expected 3% to 5% annual growth as new stations improve accessibility and attract tenant demand.
- Milan overall: Scenari Immobiliari forecasts 7.3% price growth for 2026, with Rome expected to rise 6.8%.
The single most important catalyst expected to drive future price growth in these Italian neighborhoods is the combination of major infrastructure completion (Olympic Village, metro extensions) and structural housing undersupply in Italy's most attractive cities, which continues to outpace new construction.
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 Do Locals and Expats Really Think About Different Areas in Italy?
Which areas in Italy do local residents consider the most desirable to live?
The areas in Italy that local residents consider the most desirable to live include Milan's Centro Storico and Garibaldi-Porta Venezia, Rome's Prati and Parioli, Florence's Centro and Oltrarno, and Venice's Dorsoduro and Cannaregio on the historic island.
The main qualities that make these areas most desirable to Italian locals are specific to each neighborhood:
- Milan Centro Storico: Walking distance to opera, museums, and high-end shopping, plus prestige address appeal.
- Rome Prati: Elegant tree-lined streets, proximity to Vatican City, excellent schools, and a quieter residential feel than tourist areas.
- Rome Parioli: Green spaces, upscale villas, international schools, and a family-friendly atmosphere away from tourist crowds.
- Florence Oltrarno: Artisan heritage, authentic neighborhood trattorias, and a more "local" feel than the tourist-heavy north bank.
The typical resident demographic in these locally-preferred Italian areas includes established professionals, wealthy families with children in private or international schools, and long-term residents who value neighborhood stability over investment returns.
Local Italian preferences largely align with what foreign investors target in terms of location prestige, but locals often place more emphasis on school quality, parking availability, and condominium building condition, while foreign buyers tend to prioritize tourist appeal and rental income potential.
Which neighborhoods in Italy have the best reputation among expat communities?
The neighborhoods in Italy with the best reputation among expat communities include Rome's Prati and Trastevere, Milan's Garibaldi-Porta Venezia and Navigli-Bocconi, and Florence's Centro and Oltrarno.
The main reasons expats prefer these Italian neighborhoods over others are consistent across locations:
- Rome Prati: English-speaking services, international schools nearby, safe streets, and excellent metro access to the center.
- Rome Trastevere: Bohemian atmosphere, lively nightlife, walkable streets, and a strong community of international residents.
- Milan Garibaldi-Porta Venezia: Proximity to corporate headquarters, vibrant LGBTQ+ scene, international restaurants, and modern amenities.
- Milan Navigli-Bocconi: University energy, canal-side bars, and a young international crowd from Bocconi business school.
The typical expat profile in these popular Italian neighborhoods includes corporate transferees and executives in Milan's business districts, remote workers and digital nomads in Florence, diplomats and NGO workers in Rome's Prati, and young professionals and students throughout all three cities.
Which areas in Italy do locals say are overhyped by foreign buyers?
The areas in Italy that locals commonly say are overhyped by foreign buyers include Milan's Centro Storico, Rome's Centro Storico (particularly the Pantheon-Navona tourist triangle), and Venice's San Marco-Rialto zone.
The main reasons locals believe these Italian areas are overvalued or overhyped are specific to each location:
- Milan Centro Storico: Yields compress below 4% because prices far outpace rents, and daily life involves constant tourist crowds and limited parking.
- Rome Centro Storico: Purchase prices approach 8,500 euros per square meter but rental yields are modest, and STR income faces growing regulatory risk.
- Venice San Marco-Rialto: Premium pricing meets heavy tourist pressure, strict STR regulations, and limited year-round tenant demand for long-term rentals.
Foreign buyers typically see prestige, historic architecture, and postcard views in these Italian areas, while locals recognize the practical downsides: high condominium fees for aging buildings, noise from tourism, and the operational friction of actually living in a tourist destination rather than just visiting one.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Italy.
Which areas in Italy are considered boring or undesirable by residents?
The areas in Italy that residents commonly consider boring or undesirable include Rome's far eastern periphery (Roma est-Autostrade area), Milan's outer belts like Baggio and Quarto Oggiaro, and Venice's mainland districts of Mestre-Marghera.
The main reasons residents find these Italian areas boring or undesirable are distinct:
- Rome Roma est-Autostrade: Dominated by highway infrastructure, commercial zones, and residential blocks with few restaurants, bars, or cultural amenities.
- Milan Baggio and Quarto Oggiaro: Distance from the city's lifestyle attractions, limited nightlife, and a reputation for being "dormitory" neighborhoods.
- Venice Mestre-Marghera: Industrial heritage, mainland location lacking the lagoon's charm, and perception as a budget alternative rather than a destination.
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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 (Italian National Statistics Institute) | Italy's official statistics office publishing the national IPAB house price index. | We used IPAB to anchor the national market direction going into early 2026. We treated city and neighborhood data as local variations from this baseline. |
| Agenzia delle Entrate (OMI) | Government property market observatory using official registry and cadastre archives. | We used OMI data for transaction volumes and market structure context. We also referenced their home purchase tax guidance for ownership cost information. |
| Banca d'Italia | Italy's central bank publishing regular housing market surveys with OMI and Tecnoborsa. | We used their survey to triangulate market sentiment versus listing data. We treated it as a directional check for early-2026 conditions. |
| Idealista | Major Italian property portal with transparent, repeatable price indices by neighborhood. | We used Idealista's sale and rent tables to compute gross yields and compare neighborhoods. We relied on their December 2025 data as the closest snapshot to January 2026. |
| Immobiliare.it | Italy's largest property portal publishing zone-level price snapshots and market reports. | We used Immobiliare.it to cross-check Idealista data and validate neighborhood rankings. We treated it as a triangulation source for price extremes. |
| Ministry of Tourism (BDSR/CIN) | Official government source for short-term rental registration and compliance requirements. | We used it to explain the CIN compliance baseline for STR investors. We highlighted why STR yield calculations must account for regulatory friction. |
| Inside Airbnb | Widely used research dataset for STR intensity and listing concentration analysis. | We used it to identify where STR density is highest and oversaturation risk is elevated. We treated it as a supply pressure lens, not a profitability guarantee. |
| Reuters | Top-tier wire service for time-sensitive policy and enforcement news. | We used Reuters reporting on Milan's keybox ban to illustrate active STR enforcement trends. We adjusted STR risk assessments for dense tourist districts accordingly. |
| Scalo Porta Romana Project | Official project site for Milan's 2026 Olympic Village regeneration. | We used it to document the catalyst behind Porta Romana appreciation expectations. We relied on official timelines rather than speculative commentary. |
| The Local Italy | English-language news source covering Italian property market developments and regulations. | We used their reporting on Scenari Immobiliari forecasts for 2026 price growth projections. We cross-referenced with official sources for validation. |
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