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Yes, the analysis of Rome's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Trastevere? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Monti or Testaccio where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Italy Property Pack.
Will property prices increase in Rome in 2025?
Yes, property prices in Rome are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Rome remains one of the most attractive cities in Italy for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Rome’s price growth remain strong.
Demand, especially in the historic and central areas, continues to outpace supply, making significant price drops unlikely. Additionally, Rome's status as a cultural and historical hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Rome
Here are some factors suggesting prices could increase:
The limited availability of new housing developments in central Rome is expected to persist in 2025, maintaining upward pressure on property prices as demand remains robust.
Rome's ongoing infrastructure improvements, including enhancements to public transportation and urban amenities, are likely to increase the attractiveness of certain neighborhoods, driving up property values.
The city's appeal as a tourist destination continues to grow, leading to increased interest from international buyers looking for vacation homes or investment properties, which supports price growth.
Government initiatives aimed at revitalizing historic buildings and neighborhoods are expected to enhance property values in these areas, contributing to overall price increases.
The trend of remote working is encouraging more people to move to culturally rich cities like Rome, boosting demand for residential properties in the city.
Rome's strong rental market, driven by both long-term residents and short-term tourists, is attracting investors, which in turn supports higher property prices.
The stabilization of interest rates in Italy is expected to make financing more accessible, encouraging more buyers to enter the market and supporting price growth.
Signals pointing to a property price decrease in Rome
Here are some factors suggesting prices could fall:
Economic uncertainties, including potential political instability, could impact buyer confidence and reduce demand for properties in Rome.
Rising living costs and inflation may strain household budgets, potentially reducing the purchasing power of local buyers and impacting demand.
If interest rates rise more than expected, it could make mortgages less affordable, deterring potential buyers and cooling the market.
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If property prices go up in Rome, how much would they increase by?
If real estate prices in Rome were to rise in 2025, the increase would likely be around 2% to 6% of their 2024 values.
Typically, real estate in stable, mature markets like Rome appreciates by approximately 2% to 6% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Trastevere for 500,000 euros today, don't be surprised if it's priced between 510,000 and 530,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Roman real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 4%, and 6%.
Type of Property | Average Price in 2024 (€) | Price in 2025 (2% increase) | Price in 2025 (4% increase) | Price in 2025 (6% increase) |
---|---|---|---|---|
Historic Apartment (60 sqm / 646 sqft) | €600,000 | €612,000 | €624,000 | €636,000 |
Modern Apartment (75 sqm / 807 sqft) | €800,000 | €816,000 | €832,000 | €848,000 |
Luxury Penthouse (100 sqm / 1,076 sqft) | €1,500,000 | €1,530,000 | €1,560,000 | €1,590,000 |
Studio (30 sqm / 323 sqft) | €300,000 | €306,000 | €312,000 | €318,000 |
Loft (80 sqm / 861 sqft) | €1,000,000 | €1,020,000 | €1,040,000 | €1,060,000 |
Townhouse (150 sqm / 1,615 sqft) | €2,000,000 | €2,040,000 | €2,080,000 | €2,120,000 |
Investment Property (50 sqm / 538 sqft) | €500,000 | €510,000 | €520,000 | €530,000 |
Everything you need to know is included in our Property Pack for Rome
If real estate prices go up in Rome, which areas are likely to see the biggest increases?
Today, people who want to move to Rome desire the historical allure, but they also seek modern amenities and lively social scenes, which Trastevere offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Pigneto has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Roman market.
Neighborhood | Level of Increase | Why |
---|---|---|
Trastevere | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
Centro Storico | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Rome. |
Testaccio | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
EUR | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
Monteverde | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
Monti | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
San Lorenzo | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
Pigneto | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
Ostiense | Medium-High | Its proximity to central Rome, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
Garbatella | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
Parioli | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
Vatican City Area | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Rome
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Rome?
In 2025, Rome real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Rome are seeing increased interest. Proximity to historical sites and quality schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Rome, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Rome's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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