Authored by the expert who managed and guided the team behind the Italy Property Pack
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What will happen in Lombardy’s real estate market? Will prices go up or down? Is Milan still a hotspot for foreign investors? How is Italy’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Lombardy, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Demand for rentals near universities in Milan will grow as more international students arrive
International student enrollment in Milan has jumped by 13% for the 2023/2024 academic year compared to 2020-2021.
This surge in students is creating a buzz in the rental market, especially around universities. With more students arriving, the demand for housing near campuses is skyrocketing, making it a hot spot for property investors.
Many students are on the hunt for places close to their schools, and this is causing a bit of a squeeze. Reports of housing shortages near major universities are becoming more common, as the competition for rentals heats up.
Why do students want to live near their campuses? It's all about convenience and community. Surveys show that international students prefer being close to their educational institutions, which means properties in these areas are in high demand.
For those looking to invest, this trend is a golden opportunity. Rental properties in university districts are becoming increasingly valuable as students prioritize proximity to their schools.
With the influx of international students, the rental market in Milan's university areas is set to thrive, offering promising returns for property investors.
Sources: Agenzia Nova, University World News, The Class Foundation
2) Rental prices in Bergamo will rise as it becomes more appealing to Milan commuters
Rental prices in the Bergamo area are on the rise as the city becomes a hotspot for Milan commuters.
With Milan's property prices climbing, many are looking to Bergamo for more affordable living. The city is just a train ride away, and improved transportation links have made the commute smoother than ever. This convenience is drawing more people to settle in Bergamo while working in Milan.
Recent data shows a notable increase in commuters traveling from Bergamo to Milan. This shift is not just about convenience; it's about lifestyle. Bergamo offers a quieter, more relaxed environment compared to the hustle and bustle of Milan, making it an attractive option for those who work in the city but prefer a more laid-back home life.
Real estate reports highlight a steady climb in rental prices in Bergamo, reflecting the growing demand. The city's proximity to Milan is a key factor, but so is its charm. Bergamo is known for its rich history and beautiful landscapes, which add to its appeal.
Demographic studies reveal a population growth in Bergamo, driven by the influx of commuters. This trend is reshaping the local housing market, with more people seeking rental properties in the area. As Bergamo becomes more popular, the demand for housing continues to push prices up.
Sources: Immobiliare.it, Euronews, Esales International
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.
3) Property prices in Lake Como will rise steadily as it stays popular with wealthy international buyers
The Lake Como region is a magnet for affluent international buyers.
In recent years, property prices along Lake Como have been on the rise. For instance, there was a 4% increase in 2021, and over the five years leading up to 2021, prices jumped by 10%. This shows a strong upward trend in property values.
One major reason for this trend is the surge in interest from international buyers. In 2021, property inquiries skyrocketed by 144%, underscoring the global allure of Lake Como's breathtaking lake and mountain views. Buyers from Europe, the US, the Middle East, and Australasia are particularly drawn to the area.
The scarcity of prime waterfront properties also plays a crucial role. Limited availability keeps demand high, ensuring that existing properties remain sought after. The prestige of the area, coupled with the charm of high-profile towns like Laglio, where celebrities like George Clooney reside, continues to drive prices up.
Lake Como's appeal isn't just about the views; it's about the lifestyle. Owning a property here means joining an exclusive community that values privacy, luxury, and natural beauty. This exclusivity is a significant factor in the rising property prices.
For those considering a purchase, it's worth noting that Lake Como remains a favorite among the wealthy, ensuring a steady increase in property values. The combination of limited supply, high demand, and the area's prestige makes it a sound investment.
Sources: Knight Frank, Como Lakeside Blog
4) Property prices in Brescia will rise moderately as the city invests in infrastructure and urban development
Brescia is buzzing with new infrastructure projects, making it a hot spot for potential property buyers.
The city is pouring resources into the Po-Fesr Integrated Territorial Investment (ITI) program, which is all about creating a vibrant urban center and sprucing up public spaces. These kinds of upgrades not only make the city more appealing but also tend to push property prices up as more people want to live in a well-connected and attractive area.
On top of that, Brescia's city council is rolling out plans to breathe new life into abandoned areas and give sports facilities a modern twist. They're also focusing on sustainable urban mobility, which means getting around the city will be easier and greener. These changes are set to make Brescia even more desirable, likely nudging property prices higher as both locals and investors take notice.
There's already a buzz in the real estate market, with property transactions in Brescia jumping by 5% in the city and 6% in the province during the first half of 2024. This uptick in activity hints at a growing demand, which often leads to rising property prices. Real estate experts, like those at Tecnocasa, are seeing prices stabilize and predict growth, especially for new builds.
For those eyeing a property in Brescia, it's worth noting that the city's investments in infrastructure and urban development are likely to keep the market lively. New construction properties are particularly expected to see price increases, as they align with the city's modernizing efforts.
Sources: MDPI, Auraree, Esales International
5) Property values in Bergamo will rise as it becomes a quieter alternative to Milan
Bergamo is becoming a popular alternative to Milan for those seeking a quieter lifestyle, and this shift is expected to lead to a notable increase in property values. One of the main reasons is Bergamo's proximity to Milan, combined with improved transportation links like high-speed trains and highways. This makes it easy for people to live in Bergamo while still having access to Milan's opportunities.
The rising property prices in Milan have been pushing buyers to look for more affordable options. In November 2024, the average price for residential properties in Milan was quite high, which has led many to consider Bergamo as a viable alternative. In fact, the average price for residential properties in Bergamo saw a significant increase of 10.14% from December 2023 to November 2024, indicating growing interest in the area.
Additionally, there is a growing demand for quieter and more affordable living environments, which Bergamo can provide. The city's cultural and lifestyle appeal, including its historic center and natural surroundings, make it an attractive alternative to the bustling city of Milan. Local government initiatives to promote Bergamo as a residential area are also contributing to its growing popularity, as they enhance the city's infrastructure and amenities.
Sources: Immobiliare.it, World Population Review, Trevi Elite
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6) Demand for long-term holiday rentals will grow in Lake Garda as it becomes a favored destination
Lake Garda has been experiencing a significant increase in tourism, with 2.4 million tourists visiting by August 2023, marking an 8% rise from 2022. This surge in visitors is accompanied by 11 million overnight stays, reflecting a 6.2% increase from the previous year. Such growth indicates a strong and growing interest in the region as a travel destination.
The demand for holiday rentals in Lake Garda is on the rise, as evidenced by the increase in rental prices. By November 2024, the average price for residential rental properties had risen by 14.69% compared to December 2023. This trend suggests that more people are seeking long-term holiday rentals in the area, likely due to its appeal as a scenic and tranquil location.
Efforts to improve infrastructure and amenities in Lake Garda are also contributing to its attractiveness for long-term visitors. Initiatives by local tourism organizations to attract foreign workers and young people for internships are enhancing the region's appeal. These efforts are likely to result in increased long-term stays, further boosting the rental market.
Sources: The River News, Immobiliare.it, The River News
7) Chinese investors will increasingly buy properties in Milan to diversify their portfolios
In recent years, we've seen a noticeable increase in Chinese investors looking to diversify their portfolios by investing in international real estate markets. This trend is particularly evident in Milan, a city that has become increasingly attractive to these investors.
One of the main reasons for this growing interest is the volatility in the Chinese property market. Over the past couple of years, the market has faced significant challenges, such as declining property sales and rising leverage among developers. This has prompted Chinese investors to seek more stable and diversified investment opportunities abroad, including in European real estate markets like Milan.
Additionally, Milan's appeal as a cultural and economic hub cannot be overstated. The city is set to host the 2026 Winter Olympics, which is expected to further boost its real estate market. Milan's dynamic lifestyle and investment opportunities make it an attractive destination for international investors, including those from China.
Moreover, the presence of Chinese companies and financial institutions in Milan facilitates property transactions, making it easier for Chinese investors to enter the market. This growing presence of Chinese businesses in the city can attract even more investors from China.
Sources: China Briefing, Tourism Review, JamesEdition, S&P Global
8) More buyers will invest in sustainable homes in Lombardy due to new tax incentives for energy efficiency
The new tax incentives for energy-efficient homes in Lombardy are likely to encourage more buyers to invest in sustainable properties for several reasons.
Firstly, the Italian government's introduction of the 'Superbonus' tax credit, which initially allowed homeowners to deduct 110% of their renovation costs, sparked significant interest. Even though this benefit was reduced to 90% in 2023 and 70% in 2024, the initial generosity led to an expenditure of €215 billion over four years, far exceeding expectations. This shows a strong governmental push towards energy efficiency, making it financially attractive for homeowners.
Secondly, there is a rising trend in Lombardy towards improving building efficiency, as seen in the analysis of energy performance certificates (EPCs). Many municipalities are actively working to upgrade their buildings' energy classes, indicating a proactive approach to energy efficiency. This trend is supported by increased sales of energy-efficient appliances and building materials, highlighting a growing market for sustainable construction practices.
Additionally, the positive impact of energy-efficient homes on property values makes them more attractive to buyers. Studies have shown that improving energy efficiency not only reduces emissions but also increases property values, providing a financial incentive for investment in sustainable properties.
Sources: Analysis of measures to enhance the energy efficiency of Italian buildings, Italy Superbonus Tax Credit Growth, CENTRIA Energy-Efficient Building Materials
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.
9) Middle Eastern investors will target luxury properties in Milan due to its stable economy and rich culture
Middle Eastern investors are increasingly focusing on high-end properties in Milan due to the city's economic stability and cultural offerings. In the first half of 2024, Milan accounted for 34% of the investment volume in the Italian real estate market, showing a significant increase compared to 2023. This indicates a strong demand for high-quality properties, particularly in the office and residential sectors.
The demand for luxury properties in Milan is growing, driven by the city's reputation as a fashion and cultural hub. This demand is further fueled by the scarcity of quality housing and the market's polarization, with ESG regulations pushing demand towards low-carbon properties. Middle Eastern investors are actively purchasing high-end properties in European cities, including Milan, due to favorable government initiatives and sectoral reforms in the Middle East.
Milan's economic stability and growth make it an attractive destination for foreign investors. The city's robust expansion in real estate investments and the reinvigoration of the Retail and Hospitality sectors contribute to a positive outlook for the Italian real estate market. Additionally, tourism from Middle Eastern countries to Milan shows significant interest in the city's cultural offerings, reinforcing Milan's reputation as a cultural hub.
Sources: Savills, Arab News, PwC
10) More foreign buyers will invest in Franciacorta for its scenic beauty and investment opportunities
Foreign buyers are increasingly targeting the Franciacorta wine region for its scenic beauty and investment potential. One of the main reasons is the rising property prices in major Italian cities like Milan and Rome, which are pushing buyers to explore more affordable and attractive regions. Franciacorta offers a perfect mix of scenic beauty and investment opportunities, making it an appealing alternative.
Additionally, the region has seen a significant increase in tourism, particularly wine tourism, which grew by 18% in average spending in 2023. This growing popularity highlights Franciacorta's appeal as a destination, with a large percentage of visitors purchasing wine during their visits. The successful vineyard investments in the area further demonstrate the potential for long-term financial returns, as evidenced by the increase in the average shelf price of Franciacorta wines.
Moreover, Franciacorta's wines have gained international recognition, with exports accounting for a notable portion of total sales. This international appeal is complemented by media coverage that showcases the region's scenic beauty and lifestyle appeal, attracting foreign buyers interested in both investment and lifestyle. The Italian government's incentives for foreign property investment also play a crucial role in making Franciacorta an attractive option for international investors.
Sources: Franciacorta Magazine, Franciacorta Consortium, Wine News
11) Co-living spaces will become more popular in Milan as young professionals look for affordable, community-focused housing
In recent years, Milan has seen a rising demand for affordable housing options. The city's masterplan has been actively working to ensure that over 10% of its accommodation is traditional public housing, which is more than twice the average of other Italian cities. This highlights a significant need for affordable living solutions.
At the same time, the housing market in Milan has experienced high demand, leading to increasing rental prices. This trend has made traditional housing less accessible to many young professionals who are moving to Milan for its robust job market. The city is a hub for various industries, creating ample job opportunities that attract young professionals and expats.
Surveys have shown that millennials and Gen Z have a preference for community-oriented living, which aligns perfectly with the concept of co-living spaces. These spaces emphasize shared living experiences and community interaction, making them an attractive option for those seeking a sense of belonging.
Globally, co-living spaces have been gaining popularity, with successful examples in other major cities demonstrating their viability and appeal. Real estate developers have taken notice, with increased investment in co-living projects, such as Barings' significant investment in Milan's residential market. This growing interest from developers further supports the trend.
Media coverage has also played a role in highlighting the benefits of co-living, such as cost savings, community engagement, and access to amenities. This increased visibility has driven interest among potential residents, while social media trends promoting shared living experiences have further increased its appeal.
Moreover, the rise in remote work has created a need for flexible living arrangements, which co-living spaces can provide. These spaces offer shared amenities and community support, making them an attractive option for remote workers. Additionally, the focus on sustainability and resource-sharing in housing preferences aligns with the eco-friendly features often found in co-living spaces.
Sources: OECD Cogito, Movingto.io, Barings
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12) Rental yields in Milan will dip slightly as supply starts to meet demand
Milan's rental market is seeing a shift as new residential developments increase the supply of available properties.
In recent years, Milan has been buzzing with construction, and the quality and quantity of rental options have improved, especially in the prime market. This means more choices for renters, as noted by Savills. With more properties popping up, the supply is starting to catch up with the demand.
Over in Lombardy, there's been a noticeable uptick in construction permits, hinting at a broader trend of development. This means more residential units are being built, and we might soon see a surplus of rental properties. Developments like UNICO Brera are adding new apartments, making the market more saturated.
In 2023, rental prices in Milan grew by just 0.9%, a sign that rental demand isn't quite keeping up with the supply. As Milan's population growth stabilizes, the rental market is finding its balance, with supply meeting demand more evenly.
For potential buyers, this could mean better opportunities to negotiate rental prices or find a property that suits their needs. The market is becoming more competitive, which might work in favor of renters looking for a good deal.
As the rental market adjusts, investors might see a slight decline in yields as the supply begins to match the demand. This could be a good time to explore options and make informed decisions.
Sources: Savills, Design Diffusion, Dils
13) Property prices on Milan's outskirts will fall as more people choose central areas with better amenities
In recent years, we've seen a noticeable shift in property sales trends in Milan. Specifically, the second quarter of 2024 marked a 1.2% increase in property transactions in Italy, with a more pronounced growth in the North and Central regions, including Milan. However, this growth wasn't uniform, as certain municipalities on the outskirts of Milan experienced declines in sales compared to the bustling central areas.
The demand for residential properties in central Milan has been on the rise, driven by the city's growing demand and limited supply. This is evident in the average price per square meter in Milan's city center, which reached approximately €10,500 by 2025. Such high demand is fueled by the improved infrastructure and amenities in central Milan, making it a more attractive option for potential buyers.
Moreover, consumer surveys have shown a strong preference for central living, with many prioritizing these locations for their investment and living needs. This preference is further supported by media focus on urban living trends, highlighting the convenience and access to amenities that central areas offer over the outskirts.
Sources: Idealista, Agenzia Nova
14) Demand for luxury apartments in Milan will grow as it strengthens its position as a global fashion and business center
The demand for luxury apartments in Milan is set to keep rising as the city continues to establish itself as a global fashion and business hub. In 2023 and 2024, we saw a steady increase in luxury property prices, with a 2.2% growth in 2023 and a forecasted 0.6% increase in 2024. This trend reflects the city's growing appeal and the limited supply of homes available for sale.
Milan's attractiveness to international businesses has been a significant factor. The city has drawn global capital due to its livability and lifestyle, as seen with the establishment of Gucci's new headquarters, the 'Gucci Hub.' This influx of international businesses boosts the demand for luxury living spaces as more professionals move to the city.
The city's tourism sector has also been thriving, with a notable increase in international visitors, especially during events like Milan Fashion Week. This growth in tourism has further enhanced Milan's reputation as a vibrant and dynamic city, attracting more high-net-worth individuals who seek luxury accommodations.
Moreover, the preference for urban living among affluent individuals aligns with the increasing demand for luxury apartments in Milan. The city's cultural and lifestyle appeal, combined with its business opportunities, makes it an ideal choice for those seeking a high-quality urban lifestyle.
Sources: Columbus International, The MBS Group, Luxury Tribune, Milano Style
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.
15) Rental yields in Monza will increase as more young professionals and families move in
Rental yields in Monza are on the rise as the city becomes a magnet for young professionals and families.
Monza is buzzing with energy, thanks to its youthful vibe and a population with an average age of around 44 years. The city is a melting pot, with about 10% of its residents being foreign nationals, adding to its cultural richness. Improved transport links, like the M5 metro line extension, make commuting to Milan a breeze, drawing more people to settle in Monza.
Monza's economy is thriving, with a low unemployment rate of around 5% and new business hubs and tech parks popping up. This economic stability is a magnet for young professionals and families. As Milan's property prices soar, Monza offers a more affordable alternative, with significantly lower average prices per square meter.
In November 2024, the average rental price in Monza was €13.08 per square meter, showing a 1.24% increase from December 2023. This uptick in rental prices reflects the growing demand for properties in the area.
Monza's appeal isn't just about affordability; it's also about lifestyle. The city's vibrant cultural scene and accessibility make it an attractive place to live. With more people choosing Monza, rental yields are expected to continue their upward trend.
As Monza continues to develop, it's becoming a hotspot for those seeking a balance between city life and affordability. The city's growth is a testament to its increasing popularity among young professionals and families.
Sources: Immobiliare.it, Housenix, Comune di Milano
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.