Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Lombardy's property market is included in our pack
What is happening in Lombardy’s real estate market? Are prices on the rise or decline? Is Milan still a prime destination for international investors? How are regional policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the region, from Bergamo to Brescia and beyond. You might be curious about these trends too.
We know this because we maintain close connections with local experts and individuals like you, exploring the Lombardy real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) Student-heavy cities like Pavia will see stable yields due to steady demand
In Pavia, rental yields have stayed stable thanks to a large student population.
The University of Pavia, with nearly 24,000 students, keeps the demand for housing steady. This includes a significant number of international students, ensuring a continuous need for accommodation. The student influx means landlords rarely face empty properties.
From December 2023 to November 2024, rental prices in Pavia rose by 6.65%, showing a healthy market. This increase is driven by students, who are always on the lookout for places to stay. Even with plans to expand student housing, the current supply can't keep up with demand, keeping the market competitive.
Pavia's charm extends to international students, with over 1,800 enrolled, adding to the housing demand. This international interest not only boosts the local rental scene but also draws in property investors eyeing stable returns. The trend is echoed across Europe, where more investment is needed to meet the growing student accommodation demand.
Sources: Immobiliare.it, Edurank, Shiksha, JLL
2) Rental yields in tourist-heavy areas like Lake Garda will increase.
The rental market in tourist-heavy areas like Lake Garda is set to see a boost in yields thanks to a few key factors.
First off, Lake Garda is becoming a hot spot for tourists. In 2023, there was an 8% jump in tourist arrivals compared to the previous year, and this trend is continuing into 2024 with more international visitors flocking to Italy.
People are increasingly opting for short-term rentals over hotels, which is driving up demand. By November 2024, the average rental price in Garda had shot up by 14.69% compared to December 2023. Platforms like Airbnb are making it easier for tourists to find these rentals, adding to the trend.
During peak tourist seasons, occupancy rates are through the roof. In August 2023, reports showed a 75-80% occupancy rate, highlighting the strong demand and potential for higher rental yields.
Investors are taking note of these trends, seeing Lake Garda as a promising area for property investment. The combination of rising tourist numbers and high occupancy rates is making it an attractive option.
With more tourists choosing Lake Garda and preferring rentals, the area is poised for a rental market boom. This is especially true during peak seasons when demand is at its highest.
Sources: All Roads Lead to Italy, Immobiliare.it, The River News
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) Rental prices in tourist areas will fluctuate seasonally but trend upward overall
The rental market in tourist areas like Lombardy is experiencing seasonal fluctuations with an overall upward trend due to several factors.
First, the increasing number of tourists visiting Lombardy is a major driver. In 2023, Lombardy hosted 17.7 million tourists, and projections for 2024 suggested even higher numbers. This consistent growth in tourism means more people are looking for places to stay, especially during peak seasons, which naturally pushes rental prices up.
Additionally, the demand for short-term rentals has been rising. For instance, the average daily rate for short-term rentals in Lombardy increased significantly from €115 in January 2023 to €154 in August 2023. Although there was a slight decline towards the end of the year, the rates remained higher than at the start of 2023, indicating a strong demand that contributes to the upward trend in rental prices.
Moreover, rental prices in Lombardy have shown a clear seasonal pattern, with the highest rates during peak tourist seasons like August. This pattern is supported by anecdotal evidence from property owners who report higher earnings during these times. The limited supply of rentals during peak seasons further exacerbates this trend, as more tourists compete for fewer available properties.
Sources: Immobiliare.it, Xinhua News, PriceLabs
4) Demand for energy-efficient homes will rise due to new tax incentives
In 2023 and 2024, Lombardy saw a significant increase in applications for energy-efficient home certifications. This was largely due to the region's robust energy certification system, which included accreditation for energy certifiers and the creation of an energy register of buildings. This growing interest in energy-efficient homes set the stage for increased demand.
The introduction of Italy's 'Superbonus' tax credit played a crucial role in boosting demand for energy-efficient homes. This tax credit allowed homeowners to deduct 110% of their home renovation costs from their taxes, provided the renovations made the buildings more energy-efficient. As a result, there was a surge in home renovations, leading to a significant increase in the sales of energy-efficient home appliances and materials.
Consumer surveys conducted in Italy during this period indicated a growing preference for energy-efficient homes. Homeowners were increasingly looking to upgrade their properties to reduce energy consumption and lower their utility bills. This trend was expected to continue as more homeowners became aware of the benefits of energy-efficient homes.
Government reports documented the high uptake of tax incentives for energy-efficient renovations. The 'Superbonus' tax credit generated significant interest among Italian homeowners, leading to an expenditure of €215 billion over four years, far exceeding initial predictions. This strong response to tax incentives highlighted the potential for increased demand for energy-efficient properties.
5) Young professionals moving to Milan will boost demand for urban apartments
Milan is drawing in young professionals thanks to its thriving tech and finance sectors.
The city has become Italy's tech hub, with a 15-fold increase in startups over the last decade. This boom is largely due to major investments, like the €1.3 billion invested in fintech startups in 2022, which was a 90% jump from the previous year. Such financial backing is turning Milan into a hotspot for innovation and career growth.
Nearly half of Italy's tech ecosystem value is concentrated in Milan, making it a prime destination for those in the tech industry. The city's infrastructure, capital, and talent pool are key factors that attract young professionals eager to advance their careers in a dynamic environment.
Milan's lifestyle is also a big draw. It's often featured in media and social media as a cultural and economic center. The city's charm is further enhanced by €830 million invested in upgrading public transport, making it even more appealing to young professionals who value convenience and connectivity.
With its vibrant tech scene and improved infrastructure, Milan is increasingly seen as a top choice for young professionals. The city's blend of career opportunities and lifestyle perks makes it a compelling place to live and work.
Sources: FDI Intelligence, Startup Reporter, Comune di Milano
Get fresh and reliable information about the market in Lombardy
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Milan's rental yields will rise as international businesses keep flocking to the city
Rental yields in Milan are expected to increase as the city continues to attract international businesses. One of the key reasons is the increased Foreign Direct Investment (FDI) in Milan. According to the UNCTAD's World Investment Report 2023, FDI inflows towards Italy gained pace in 2022, with a significant portion directed towards Milan. This trend indicates a growing interest in the city's business environment.
The rising number of international companies establishing offices in Milan also plays a crucial role. The Europe Attractiveness Survey 2023 published by EY shows that the number of investment projects in Italy has more than doubled compared to the pre-COVID situation, with a notable increase in projects related to international companies setting up operations in Milan. This influx of businesses is likely to attract more international employees, further driving demand for rental properties.
Additionally, the growth in Milan's expatriate population supports this trend. In 2023, 475,171 foreign citizens lived in the metropolitan city of Milan, with significant communities from countries like Egypt, Romania, and the Philippines. This demographic is likely to drive up demand for rental properties, contributing to higher rental yields. Furthermore, property prices in Milan have been rising, with a 6.9% increase in 2024, indicating a strong and stable real estate market, which is attractive to investors and supports higher rental yields.
Sources: International Support - Credit Agricole, Statista - Foreigners in Milan
7) University towns will see increased demand for rentals due to more international students
The influx of international students is set to drive demand for rental properties in university towns, particularly in Lombardy. In the past, specifically during 2023-24, the number of international students in Lombardy was projected to exceed 22,000, marking a significant increase from the previous year. This growing number of students naturally leads to a higher demand for accommodation.
In Milan, a major city in Lombardy, the student housing market caters to nearly 175,000 students, with a notable percentage being international students. This demand is further fueled by the decentralization of the university system, which attracts more international exchange students. However, the Italian student housing market has a potential of 50,000 beds, which is insufficient to meet the current demand, especially in areas outside the old town where the offer has considerably shrunk.
Moreover, international students often prefer renting over buying due to the temporary nature of their stay and the lack of long-term financial commitments. This trend is common in many university towns and contributes to the increased demand for rental properties. Additionally, the economic impact of international students on local housing markets is substantial, as they contribute to the local economy through rent payments, further driving the demand for more rental properties.
Sources: Assolombarda, Auraree, Hines
8) Milan rents will increase as the city attracts more expatriates
As Milan becomes a more attractive destination for expatriates, the demand for housing is expected to rise significantly. In 2024, rental prices in the city center exceeded 30 euros per square meter, highlighting the already high demand for residential real estate. This trend is likely to continue as more expatriates move to the city.
The increased expatriate population is driven by Milan's status as a hub for international business. With over 2,000 foreign invested enterprises, the city hosts 45% of such companies in Italy, indicating a strong presence of international companies and expatriates. This concentration of businesses attracts professionals from around the world, further driving up the demand for housing.
Additionally, Milan's universities draw a significant number of international students, adding to the expatriate population and increasing the need for housing. The city's reputation as a cultural and economic hub, along with its efficient public transit system and initiatives to improve quality of life, make it an appealing place for expatriates to live.
Sources: Assolombarda, Statista, Oliver Wyman Forum
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) Eco-friendly properties in Lombardy will attract more foreign buyers
Foreign buyers are likely to increasingly target eco-friendly properties in Lombardy due to several compelling reasons.
Firstly, the growing demand for sustainable living options is evident in Lombardy's active promotion of sustainable development. The Regional Strategy for Sustainable Development, approved in 2021, aims to support green public procurement and stabilize the demand for sustainable solutions. This regional commitment aligns with global trends and makes Lombardy an attractive destination for eco-conscious investors.
Additionally, the increasing awareness of climate change and its impact on real estate investment decisions plays a significant role. The Italian government's initiatives to address climate change and promote sustainable development are likely to influence foreign buyers' preferences, making eco-friendly properties more appealing.
Furthermore, the rising statistics on eco-friendly property developments in Italy indicate a broader focus on sustainability and energy efficiency. This trend is expected to continue into 2025, driven by environmental concerns and regulatory changes, which will likely attract foreign buyers to Lombardy's eco-friendly properties.
Sources: esalesinternational.com, italian-lawyer.eu, sdgs.un.org
10) Property interest in Bergamo will increase due to better connectivity with Milan
In recent years, Bergamo has become increasingly attractive to property buyers, largely due to its improved connectivity with Milan. The train services between Bergamo and Milan have seen significant enhancements, with Trenord increasing the frequency to 15 trains per day and reducing the journey time to about 50 minutes. High-speed options like Frecciarossa have further cut travel times to as little as 37 minutes, making commuting much more convenient.
Additionally, the rising property prices in Milan have pushed buyers to consider more affordable nearby areas like Bergamo. Milan remains the most expensive city in Italy for real estate, with prices averaging €4,989 per square meter. This has naturally led to increased interest in Bergamo, where property prices are lower, offering a more cost-effective alternative for those looking to stay within commuting distance of Milan.
Moreover, the real estate market in Bergamo has shown promising growth. In the second quarter of 2024, there was a 1.2% increase in property transactions in Italy, with the North and Central regions, including Bergamo, experiencing more pronounced growth. This trend is supported by media coverage highlighting Bergamo's appeal as a commuter town, attracting those who wish to avoid Milan's high living costs while benefiting from improved connectivity.
Sources: Trenord, Idealista, The Trainline
11) Suburban yields will dip slightly as more people choose city living
In recent years, we've seen a noticeable shift in living preferences, with more people choosing city life over suburban areas. This trend is particularly evident in Lombardy, where urban centers like Milan are becoming increasingly attractive. One of the main reasons for this shift is the rising property prices in urban areas, which indicate a growing demand and value for city living.
Additionally, there's been a significant increase in demand for city apartments and condos, with a 25% surge in affordable urban housing needs. This suggests that people are actively seeking the convenience and lifestyle that city living offers. Younger generations, in particular, are showing a preference for urban environments, drawn by the amenities and cultural activities that cities provide.
Public transportation improvements are also playing a crucial role in this shift. For example, Bergamo's efforts to enhance its public transport system make city living more convenient and appealing. Urban development projects, such as those for the Milan Cortina 2026 Winter Olympics, are further enhancing city infrastructure and amenities, making urban areas even more desirable.
Sources: Rocket Homes, Urban Mobility Observatory, Inside the Games, TenantCloud
Don't buy the wrong property, in the wrong area of Lombardy
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Property prices in Lombardy's rural areas will slightly decline as urban migration increases
The real estate market in Lombardy's rural areas is expected to see a slight decline in prices due to urban migration.
People are leaving the countryside for city life, especially in places like Milan. This shift is causing a 10% drop in rural property transactions from 2022 to 2023. The younger crowd is chasing better job opportunities in urban centers, which is driving up demand for city properties.
Take Milan, for instance, where property prices have jumped by 6.2% in 2024 compared to last year. Government data backs this up, showing more folks are moving to cities, boosting urban growth. Real estate agents are noticing this too, with rural properties sitting longer on the market.
Agents report a significant decrease in property supply in rural areas, while city demand is either steady or climbing. Studies on remote work trends suggest people prefer urban living, reducing the need to stay in rural spots. This urban preference is reshaping the real estate landscape.
In the countryside, properties are taking longer to sell, and there's anecdotal evidence from agents about this shift. Meanwhile, cities are buzzing with activity, and the demand there is strong. The trend is clear: urban areas are becoming more attractive, pulling people away from rural life.
Sources: Esales International, Macrotrends, MLS Forum
13) Luxury property demand in Lombardy will cause a significant price increase in this segment
The demand for luxury properties in Lombardy is skyrocketing, especially around the Italian Lake District.
Lake Como, a jewel in Lombardy, is now a magnet for high-end real estate, drawing in celebrities and business leaders. This area is not just about stunning views; it's a lifestyle choice for those who can afford it.
What's driving this boom? It's the influx of high-net-worth individuals who are captivated by the region's breathtaking landscapes and laid-back charm. The scarcity of luxury homes adds to the allure, making the market fiercely competitive.
Experts predict that luxury property prices in Lombardy will soar, with Milan leading the charge. While the national average price increase is around 3.1%, Milan is expected to see a jump of 6.9%, reflecting its growing appeal.
For those considering an investment, Lombardy offers a unique blend of natural beauty and urban sophistication. The limited supply of luxury properties means that values are likely to keep climbing, making it a potentially lucrative market.
Whether you're drawn by the serene lakes or the vibrant city life, Lombardy's luxury real estate market is a hot ticket. With demand outpacing supply, now might be the time to make a move.
Sources: Gate Away, Trevi Elite, James Edition
14) Property prices in smaller towns near Milan will rise moderately
Remote work has changed how people think about where they live, with many now seeking larger homes with outdoor spaces in smaller towns around Milan.
These towns are becoming more popular because transportation links to Milan have improved, making it easier for people to commute while enjoying a quieter lifestyle. The appeal is clear when you consider that property prices in Milan are much higher than in these nearby areas, pushing buyers to look elsewhere.
In some Italian towns, the government is offering renovated homes at lower prices to attract new residents. This, combined with investments in local infrastructure, makes these towns even more attractive to potential buyers.
As a result, these smaller towns are seeing a moderate increase in property prices, driven by the demand for more space and a better quality of life. The trend is supported by the fact that people are looking for affordable options outside the bustling city.
With these changes, smaller towns around Milan are becoming a hot spot for those wanting to escape the high costs of city living while still being close enough to enjoy its benefits.
These factors are reshaping the real estate landscape, making these towns a smart choice for those looking to invest in property.
Sources: Immobiliare.it, AEAweb, Global Property Guide
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) Lecco will see increased property demand as it gains popularity among digital nomads
Lecco is becoming a hotspot for digital nomads thanks to the rise of remote work in Italy.
By 2025, 3.65 million Italians are expected to work remotely, with major companies already embracing this shift. This makes Lecco an appealing choice for those seeking a flexible lifestyle.
Lecco is also seeing a boom in coworking spaces, like the one at Lecco Hostel, which offers modern amenities such as Wi-Fi and printers. These facilities cater to digital nomads, making it easier for them to settle in and work efficiently.
High-speed internet is another draw. Thanks to Planetel's optic fibre network, Lecco offers reliable and fast internet connections, crucial for remote work. This tech boost makes the city a viable option for those who depend on the internet for their jobs.
Lecco's real estate market is more affordable compared to other Italian cities, making it an attractive choice for digital nomads. The combination of scenic beauty and affordable living costs aligns perfectly with the lifestyle many remote workers are looking for.
Sources: Pumble, Newsendip, Lecco Hostel, Planetel
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.