Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Rome's property market is included in our pack
Property prices in Rome have been on a clear upward trajectory, with residential properties increasing by 3.47% year-on-year as of November 2024.
As we reach mid-2025, the Roman real estate market continues to show strong momentum, driven by limited supply, growing international demand, and the upcoming 2025 Jubilee event which is expected to bring millions of visitors to the Eternal City.If you want to go deeper, you can check our pack of documents related to the real estate market in Italy, based on reliable facts and data, not opinions or rumors.
Property prices in Rome are experiencing steady growth, with the average price reaching €3,427 per square meter in November 2024, up 3.47% from the previous year.
The luxury segment and central neighborhoods like Centro Storico, Prati, and Garbatella-Ostiense are seeing the strongest price increases, with some areas recording annual growth rates exceeding 9%.
| Key Metric | Current Value | Year-on-Year Change |
|---|---|---|
| Average Price (Rome) | €3,427/m² | +3.47% |
| Centro Storico | €8,185/m² | +9.0% |
| Average Rent | €16.66/m²/month | +8.96% |
| Mortgage Rates | 3.5-4.0% | Decreasing |
| Time to Sell | 120 days | Stable |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What is the current average property price in Rome as of June 2025?
As of June 2025, the average property price in Rome has reached approximately €3,500 per square meter, continuing its upward trend from November 2024.
The city center commands premium prices of around €8,500 per square meter, particularly in the historic Centro Storico district where luxury properties are highly sought after. This represents more than double the city-wide average, reflecting the area's prestige and limited availability.
In contrast, peripheral areas like Lunghezza and Castelverde offer more affordable options at approximately €1,800 per square meter. The mid-range neighborhoods such as EUR and Monteverde are priced between €2,500 and €4,000 per square meter, providing a balance between accessibility and urban amenities.
The average price for a two-bedroom apartment in Rome stands at €350,000, though this varies significantly by location. Central areas can see prices exceeding €590,000 for similar properties, while suburban locations offer more budget-friendly alternatives.
These price levels reflect Rome's position as a major European capital, with prices still considered reasonable compared to other major cities like London or Paris, making it an attractive option for international buyers seeking value in a historic setting.
How much have property prices increased in Rome over the past 12 months?
Property prices in Rome have shown consistent growth over the past 12 months, with the average increase reaching 3.47% as of November 2024.
This growth rate outpaces many other Italian cities and represents a significant acceleration from previous years. In 2024, Rome saw a 2.5% annual price increase, which has now accelerated into 2025, suggesting strengthening market momentum.
The rental market has experienced even more dramatic growth, with average rents increasing by 8.96% year-on-year to €16.66 per square meter per month. This substantial rental growth is driven by limited supply and increased demand from both locals and expatriates.
The luxury segment has performed particularly well, with residential luxury sales increasing by 3.6% in transaction volume despite a 4% price increase. This demonstrates robust demand for high-end properties even as prices rise.
It's something we develop in our Italy property pack.
Which Rome neighborhoods are experiencing the fastest price growth in 2025?
Several Rome neighborhoods are experiencing exceptional price growth, with some areas recording double-digit annual increases.
Garbatella-Ostiense leads the pack with an impressive 10.6% annual price increase, followed closely by Appio Latino at 9.8% and Prati at 9.7%. These neighborhoods are benefiting from urban renewal projects and increasing popularity among young professionals.
The historic Centro Storico maintains its premium status with a 9% annual increase, pushing average prices to €8,185 per square meter. Nomentano-Tiburtino has also seen significant growth at 9.1%, driven by improved transportation links and gentrification.
| Neighborhood | Annual Price Growth | Current Price/m² |
|---|---|---|
| Garbatella-Ostiense | +10.6% | €4,200 |
| Appio Latino | +9.8% | €3,800 |
| Prati | +9.7% | €5,500 |
| Centro Storico | +9.0% | €8,185 |
| Nomentano-Tiburtino | +9.1% | €3,600 |
Other areas showing solid growth include Trionfale-Monte Mario (5.7%), while some peripheral districts like Casal Palocco-Infernetto (-1.9%) and Malagrotta-Casal Lumbroso-Ponte Galeria (-1.7%) have experienced slight declines.
What types of properties are seeing the biggest price increases?
Luxury apartments and historical properties in central Rome are experiencing the most significant price appreciation, driven by limited supply and strong international demand.
Properties in historic palazzi, particularly those with original architectural features and modern renovations, command premium prices often exceeding €15,000 per square meter. The luxury segment has shown remarkable resilience, with demand from international buyers accounting for up to 70% of high-end purchases.
Energy-efficient properties and those with recent renovations are also seeing above-average price growth. Italian tax incentives for energy-efficient renovations have made these properties particularly attractive to buyers, who can benefit from both lower running costs and potential tax breaks.
Standard apartments in central and semi-central districts continue to see steady appreciation, especially those suitable for short-term rentals. Properties that can accommodate up to six people are particularly sought after due to the growing tourist rental market.
Suburban villas and larger family homes are experiencing more modest price growth, though areas near international schools and with good transportation links remain popular among families and long-term residents.
How does the current Rome property market compare to 5 years ago?
Rome's property market has undergone significant transformation over the past five years, with prices increasing by approximately 16% since 2020.
In 2020, the average price per square meter in Rome was around €3,100, compared to the current €3,500, representing steady but sustainable growth. This increase has been driven by a combination of factors including increased international investment, urban renewal projects, and the city's enduring appeal as a cultural and tourist destination.
The market dynamics have shifted considerably, with foreign buyers now playing a much larger role. International purchases have increased from less than 10% of transactions to over 20% in some segments, particularly in the luxury market where foreign buyers account for up to 70% of purchases.
Transaction volumes have also recovered strongly from the pandemic lows, with 2024 seeing a 1.3% increase in transactions compared to 2023, reaching 719,578 sales. The market has shown particular strength in the final quarter of 2024, with a 7.6% quarterly increase.
The rental market has transformed even more dramatically, with yields improving from around 5% to the current 7.55% average in Rome, making buy-to-let investments increasingly attractive for both domestic and international investors.
What impact are current mortgage rates having on Rome's property market?
Mortgage rates in Italy have been decreasing throughout 2025, providing a significant boost to Rome's property market after the challenging period of 2022-2024.
As of June 2025, average fixed mortgage rates in Italy range between 3.5% and 4.0%, down from peaks of nearly 5% in late 2023. The European Central Bank has cut rates by 150 basis points since June 2024, bringing the deposit facility rate to 2.5%.
This reduction in borrowing costs has made property purchases more accessible, particularly for first-time buyers and investors. A typical €300,000 mortgage now costs approximately €150 less per month compared to late 2023, improving affordability significantly.
The mortgage market has responded positively, with a 19.5% increase in financed transactions in the final quarter of 2024. Banks are offering more competitive terms, and the shift back towards fixed-rate mortgages provides buyers with payment certainty.
Looking ahead, further ECB rate cuts are anticipated, which could provide additional stimulus to the market. However, strict lending criteria remain in place, with debt-to-income ratios typically capped at 35% and loan-to-value ratios for non-residents limited to 50-60%.
How is the 2025 Jubilee affecting Rome's property market?
The 2025 Jubilee is having a profound impact on Rome's property market, driving increased investment and accelerating urban renewal projects across the city.
An estimated 25 million pilgrims and tourists are expected to visit Rome during the Jubilee year, creating unprecedented demand for both short-term rentals and hotel accommodations. This has led to a surge in property purchases for investment purposes, with around 40% of current buyers purchasing specifically for rental income.
Areas near major basilicas and religious sites are seeing particularly strong demand. San Giovanni, close to the Basilica of San Giovanni in Laterano, has experienced accelerated price growth as investors anticipate higher rental yields during the event.
The Jubilee has also catalyzed significant infrastructure improvements and urban renewal projects, funded by both PNRR (National Recovery and Resilience Plan) and specific Jubilee allocations. These improvements are enhancing property values in previously overlooked neighborhoods.
Cash purchases have increased to approximately 25% of all transactions, as investors seek to close deals quickly to capitalize on the expected rental boom. This influx of investment capital is contributing to the upward pressure on prices, particularly in central areas.
What are the property price forecasts for Rome in 2026 and 2027?
Property price forecasts for Rome remain positive through 2027, with analysts predicting continued but moderate growth.
For 2026, property prices in Rome are expected to increase by approximately 1.5%, according to the Nomisma Real Estate Observatory. This represents a slight moderation from the current growth rate but still indicates a healthy market.
Looking ahead to 2027, similar growth of 1.5% is anticipated, suggesting market stability and sustained demand. The total projected increase from 2025 to 2027 is around 3%, which would bring average prices to approximately €3,600 per square meter by the end of 2027.
Several factors support these optimistic forecasts: continued international interest in Rome properties, ongoing urban renewal projects, and Italy's improving economic fundamentals. The European Commission projects Italian GDP growth of 1% in 2025 and 1.2% in 2026.
It's something we develop in our Italy property pack.
However, risks include potential economic headwinds, changes in tax policies, and the challenge of adapting older properties to meet new ESG (Environmental, Social, Governance) standards. The market's ability to absorb new supply after the Jubilee-driven boom will also be crucial.
How does Rome's property market compare to Milan and other Italian cities?
Rome's property market offers better value compared to Milan while outperforming most other Italian cities in terms of price growth and investment appeal.
| City | Average Price/m² | Annual Change | Rental Yield |
|---|---|---|---|
| Milan | €4,986 | -0.1% | 5.44% |
| Rome | €3,500 | +3.47% | 7.55% |
| Florence | €4,331 | +2.8% | 7.35% |
| Naples | €2,712 | -3.9% | 7.41% |
| Turin | €2,100 | +1.2% | 8.34% |
Milan remains Italy's most expensive city, but Rome is closing the gap with stronger price growth and better rental yields. Rome's 7.55% average rental yield significantly outperforms Milan's 5.44%, making it more attractive for buy-to-let investors.
Venice and Bolzano command high prices due to their unique characteristics, but Rome offers better liquidity and a more diverse property market. Naples is experiencing price declines, making Rome's positive trajectory more impressive by comparison.
What role are international buyers playing in Rome's property price increases?
International buyers are a major driving force behind Rome's property price increases, particularly in the luxury and historic center segments.
Foreign investors now account for approximately 20% of all property transactions in Rome, up from less than 10% five years ago. In the luxury segment, this figure jumps to an remarkable 70%, with buyers primarily from the United States, Germany, France, and the United Kingdom.
The attraction for international buyers includes Rome's relatively affordable prices compared to other major European capitals, the city's unparalleled historical and cultural heritage, and Italy's favorable tax regime for high-net-worth individuals, including the flat tax option.
International demand has been particularly strong for properties in Centro Storico, Trastevere, and Parioli, where buyers seek either vacation homes or investment properties for the lucrative short-term rental market. This concentrated demand in premium areas contributes significantly to price pressure.
The weak Euro relative to the US Dollar has made Italian properties even more attractive to American buyers, who represent a growing segment of the international market. This currency advantage, combined with Italy's golden visa program, continues to attract wealthy non-EU investors.
Which property types offer the best investment potential in Rome right now?
Properties suitable for short-term rentals in central Rome currently offer the best investment potential, with strong rental yields and capital appreciation prospects.
Apartments that can accommodate 4-6 people in neighborhoods within 2-3 kilometers of the historic center are particularly sought after. These properties benefit from Rome's thriving tourist market, with 25,720 active Airbnb listings generating substantial income for owners.
Properties near the upcoming Metro C line extensions represent excellent value, as improved transportation typically drives significant price appreciation. Areas like San Giovanni and Pigneto are already seeing increased investor interest.
Energy-efficient properties or those suitable for green renovations offer strong potential due to Italian tax incentives and growing demand for sustainable housing. Properties that qualify for the 110% Superbonus or other renovation incentives can see substantial value increases post-renovation.
Luxury apartments in prime locations continue to perform well, particularly those in historic buildings with unique architectural features. The limited supply and consistent international demand ensure these properties maintain their value and appreciation potential.
Commercial properties being converted to residential use also present opportunities, especially in areas undergoing gentrification where zoning changes allow for such conversions.
What economic factors could impact Rome property prices in the coming years?
Several economic factors will shape Rome's property market trajectory over the next few years, creating both opportunities and challenges for investors.
Italy's economic growth prospects remain modest, with the European Commission projecting GDP growth of just 1% in 2025 and 1.2% in 2026. This slow growth could limit domestic demand, though Rome's international appeal may offset this weakness.
Inflation has moderated to around 2% annually, providing stability for property investors. However, construction costs remain elevated, which could limit new supply and support prices for existing properties.
The Italian government's fiscal position, with public debt at 135% of GDP, poses long-term risks. However, EU recovery funds and infrastructure investments through the PNRR program are providing short-term stimulus, particularly benefiting Rome.
Employment in Rome remains stable, supported by the city's diverse economy including tourism, government, and services. The unemployment rate has fallen to 5.9% nationally, the lowest in 18 years, supporting housing demand.
Currency fluctuations will continue to influence international demand. A weaker Euro makes Roman properties more attractive to non-Eurozone buyers, while a stronger Euro could dampen this demand. The ongoing attractiveness of Italy's tax incentives for foreign residents will also play a crucial role in maintaining international interest.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Rome are definitively going up, with consistent growth across most neighborhoods and property types. The market showed a 3.47% annual increase as of late 2024, and this upward trend has continued into 2025.
The combination of limited supply, strong international demand, favorable mortgage rates, and the 2025 Jubilee effect creates a compelling case for continued price appreciation. Based on current market dynamics and expert forecasts, Rome's property prices will likely continue rising through 2027, making the answer to our question: Yes, they are going up.
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.
Sources
- Immobiliare.it - Rome Real Estate Market Report
- Global Property Guide - Italy's Residential Property Market Analysis 2025
- Investropa - 10 statistics for the Rome real estate market in 2025
- Idealista - House prices rise 2.5% in Rome in 2024
- European Central Bank - Euro area bank interest rate statistics
- Broker Immobiliare - Buying a home in 2025: inflation and ECB rates
- Nomisma - Real estate outlook for Italy: market forecasts until 2027
- Bank of Italy - Economic Bulletin No. 2 - 2025
- Investropa - 17 strong trends for 2025 in the Rome property market
- Statista - Average price for residential real estate in Rome by area
Get fresh and reliable information about the market in Rome
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
