Authored by the expert who managed and guided the team behind the Italy Property Pack
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What will happen in Rome’s real estate market? Will prices go up or down? Is Rome 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 Rome, 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.
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1) Rental yields in Rome's historic areas will stay steady because of constant tourist interest
Rental yields in Rome's historic districts are expected to remain stable due to consistent tourist demand. One of the key reasons is the high occupancy rates in vacation rentals within these areas. With over 23,000 Bed and Breakfasts (B&Bs) registered in Rome, it's clear that tourists have a strong preference for staying in central locations, which keeps these rentals in high demand.
Additionally, the consistent year-over-year growth in tourist arrivals to Rome further supports this stability. In 2023, Rome welcomed approximately 35 million tourists, marking a 9% increase from the previous year. This steady influx of visitors ensures that the demand for short-term rentals remains robust, contributing to stable rental yields.
Moreover, surveys and studies consistently highlight the strong preference of tourists to stay in historic districts. The appeal of Rome's historic sites, such as the Roman Forum and Catacombs, continues to draw millions of tourists each year. This ongoing attraction helps maintain the demand for rentals in these areas, supporting stable rental yields.
Sources: Global Property Guide, Rome Business School, Rome Reports
2) Property values in Trastevere will rise as it becomes a cultural hotspot for young professionals
In recent years, Trastevere has seen a notable increase in property prices, with a 12.22% rise from December 2023 to November 2024. This trend is expected to continue, with projections indicating annual increases of 2% to 6% due to high demand and limited supply.
The neighborhood's cultural scene is thriving, with events like the Festa dei Noantri and Lungo il Tevere drawing crowds and enhancing its appeal. These festivals create a vibrant atmosphere that attracts both locals and tourists, making Trastevere a cultural hotspot.
Art galleries and creative spaces, such as CASTRO and T293 Gallery, have established Trastevere as a hub for contemporary art. This artistic presence contributes to the neighborhood's allure, attracting young professionals who value cultural experiences.
Trastevere's lifestyle, characterized by historical charm and modern amenities, is increasingly popular among young professionals. This demographic shift is driving up property values as more young people choose to live in the area.
Media coverage and social media trends frequently highlight Trastevere as a trendy and desirable location. This positive attention boosts its reputation and attracts more potential residents, further increasing demand for properties.
New co-working spaces and start-up hubs are emerging in Trastevere, drawing young professionals and entrepreneurs. This development enhances the neighborhood's appeal as a place to live and work, contributing to rising property values.
Investment in local infrastructure and public transport has made Trastevere more accessible, adding to its attractiveness for young professionals. Improved connectivity supports the neighborhood's growth as a cultural hub.
Rising rental yields, with a 6.97% increase from December 2023 to November 2024, indicate strong demand for residential properties. This trend suggests that Trastevere is becoming an increasingly desirable place to live.
New restaurants, cafes, and nightlife venues continue to open in Trastevere, enhancing its vibrant lifestyle. This influx of businesses attracts young professionals, contributing to the area's rising property values.
Sources: Immobiliare.it, Italy4Real, Italy with Class, The Roman Guy
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.
3) Rents in central Rome will keep rising because of high demand from expats and tourists
Rents in Rome's central neighborhoods are climbing steadily, with a 1.4% bump in August 2023, making the average rent 14.9 €/m².
Rome's allure isn't just its history; it's a magnet for expatriates seeking opportunities in fashion and technology. This influx of professionals is a key driver of the rental market. The city's vibrant culture and job prospects make it a top choice for those looking to relocate.
Tourism is another big player here. With millions of visitors flocking to Rome each year, the demand for short-term rentals is through the roof. Airbnb listings are booming in central areas, and the city boasts over 23,000 registered B&Bs. This surge in short-term stays is pushing rental prices higher.
The housing supply in central Rome is tight. Many apartments are being turned into tourist accommodations, leaving fewer options for long-term residents. This scarcity, paired with high demand, naturally leads to rising rental prices. Urban development plans that restrict new housing construction in these areas only add to the crunch.
For those eyeing a property in Rome, it's crucial to understand these dynamics. The combination of expatriate interest and tourist influx is a potent mix, ensuring that rents will likely keep climbing. The city's charm and opportunities are undeniable, but they come with a price tag.
So, if you're considering a move to Rome, be prepared for a competitive rental market. The demand from both expatriates and tourists is strong, and with limited housing supply, prices are set to rise. It's a vibrant city with much to offer, but securing a place in its heart might require some savvy navigation.
Sources: Idealista, Moving Countries Guide, Rome Reports
4) Foreign investors will target Rome's historic properties for their unique cultural value
Foreign investors are zeroing in on Rome's historic properties for their unique charm and cultural significance.
Rome's allure is undeniable, with its vibrant tourism scene and rich history making it a hotspot for luxury and historic properties. The city is buzzing with activity, and this is reflected in the real estate market. Luxury hotels are expected to grow by 30% in the next three years, drawing in high-net-worth individuals who are eager to invest in the city's timeless appeal.
Foreign investment in Italy's real estate is booming, with international buyers playing a major role. In 2024, foreign investors accounted for 75% of real estate transactions, showing a clear preference for Rome's culturally rich assets. This trend is part of a larger movement where global investors are increasingly interested in tangible assets that offer historical and cultural value.
The Italian government is also playing its part by offering incentives for the restoration and preservation of historic properties. Initiatives like the *Superbonus* encourage energy-efficient upgrades, making it even more appealing for foreign investors to dive into Rome's historic real estate market. These government incentives are a game-changer, providing additional motivation for investment.
Rome's historic architecture, combined with rising property values and government support, creates a perfect storm for foreign investment. The city's unique blend of history and modernity is a magnet for those looking to invest in something truly special. The charm of Rome's ancient buildings is irresistible, drawing investors from all corners of the globe.
With all these factors in play, it's no wonder that foreign investors are flocking to Rome. The city's historic properties offer not just a piece of real estate, but a slice of history and culture that is hard to find elsewhere. Rome's real estate market is a treasure trove for those seeking unique and culturally significant investments.
Sources: CoStar, Italian Luxury Asset, ICE, Properstar
5) Property values in the Appia Antica region will rise as interest in eco-friendly living grows
The Appia Antica region is set to see a rise in property values due to growing interest in eco-friendly living spaces.
In Italy, there's a buzz around eco-friendly, energy-efficient homes, with demand expected to jump by 20% by 2025. This isn't just about saving the planet; it's about a lifestyle shift towards sustainability. People are waking up to the benefits of living green, and it's changing the real estate game.
Rome's property market is already heating up, especially in areas like Centro Storico. Here, residential property prices are climbing, reflecting a broader trend where eco-friendly neighborhoods are in vogue. Buyers are snapping up energy-efficient homes 20% faster than those without green certifications, showing a clear preference for sustainable living.
The Italian government is nudging this trend along with incentives like "bonus edilizi case green." These perks encourage building and renovating homes to meet sustainable standards, aligning with the EU's Case Green directive. It's all part of a bigger push to hit climate neutrality by 2050, making energy efficiency a top priority for homebuyers.
Urban planning in Rome is shifting gears towards sustainability, and the Appia Antica region is in the spotlight. It's included in Rome's sustainable urban mobility plan, which aims to boost ecotourism and promote environmental education. This focus on green living is expected to boost the area's appeal and drive up property values.
With these changes, the Appia Antica region is becoming a hot spot for those seeking eco-friendly living. The combination of government incentives, market trends, and urban planning is creating a perfect storm for property value growth. It's a prime time to invest in this area, where sustainability meets desirability.
Sources: Immobiliare.it, Sofialocks, Trevi Elite
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6) Demand for accessible housing in Rome will grow as the population ages
The aging population in Rome is reshaping the city's housing market.
In 2023, 24.3% of Rome's residents were over 65, marking a noticeable demographic shift. This isn't a sudden change; back in 2010, it was 21.5%, and by 2022, it had climbed to 23.5%. As people live longer, with Italy's life expectancy projected to hit 84.26 years by 2025, the demand for homes that cater to older adults is becoming more urgent.
Older adults often face mobility challenges, making accessible housing a necessity. Urban planners are catching on, focusing on age-friendly designs like single-story homes or buildings with elevators. This shift is not just about convenience; it's about ensuring that older adults can live comfortably and independently.
Government reports and advocacy groups are pushing for housing policies that address these needs. The goal is to adapt the living spaces to support an aging population, allowing them to maintain their independence for as long as possible. This is crucial as the demand for healthcare and assisted living facilities continues to rise.
Rome's housing market is responding to these changes, with more emphasis on creating environments that are not only accessible but also welcoming for older adults. This trend is expected to grow, driven by the increasing number of seniors who require homes that accommodate their needs.
For potential property buyers, understanding this shift is key. Investing in properties that are designed with accessibility in mind could be a smart move, given the growing demand for such homes. As the population ages, the need for accessible housing options will only become more pronounced.
Sources: Statista, Macrotrends, Xinhua News
7) Property prices in Rome will keep rising because demand is high and supply is low
In recent years, we've seen a noticeable increase in residential property prices in Rome. For instance, the average price per square meter rose from €3,017 in 2023 to €3,427 by November 2024. This upward trend is a clear indicator of rising demand and limited supply in the market.
One of the main reasons for this price increase is the growing population and urbanization in Rome. By 2024, the city's population reached over 4.3 million, showing a steady annual growth. More people moving to the city naturally leads to higher demand for housing.
Adding to the limited supply is the scarcity of land for new developments, especially in central areas like the Centro Storico. Strict historical preservation laws restrict new construction, making existing properties more valuable. This scarcity, combined with high demand, pushes prices up.
Sources: World Population Review, Immobiliare.it
8) Rental yields in Rome's new areas will rise as they attract young professionals
Newly developed areas in Rome are becoming hotspots for young professionals.
Places like Ostiense and San Lorenzo are buzzing with a modern vibe, attracting young folks who love the proximity to universities and the convenience of nearby amenities. This trend is not just about lifestyle; it's also about rising rental yields. With a 6% increase in the cost of renting a one-bedroom apartment in Rome in 2024, these areas are becoming prime spots for real estate investment.
What makes these neighborhoods even more appealing is their improved infrastructure. Ostiense, for instance, is well-connected through the Piramide metro station and Roma Termini, making it a breeze to get around. This connectivity is a big draw for young professionals, boosting demand for rentals and pushing up property values.
Investors are taking note, with the average gross rental yield in these areas reaching 7.19%. This figure highlights the strong investment potential, as more young professionals and investors flock to these vibrant neighborhoods. The rising property values in Ostiense are a testament to its growing popularity.
As these areas continue to develop, the demand for rental properties is expected to keep climbing. The combination of modern amenities, improved transport links, and a youthful vibe makes them particularly attractive. For those looking to invest, these neighborhoods offer a promising opportunity with high rental yields and a steady influx of young professionals.
In short, if you're considering buying property in Rome, keep an eye on these newly developed areas. They're not just trendy; they're also financially rewarding, thanks to the increasing demand from young professionals and the resulting rise in rental yields.
Sources: EURES, Rent Your Nest, 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.
9) More foreign buyers will invest in Rome as it becomes a popular remote work destination
Rome is becoming a hotspot for foreign buyers as it attracts more remote workers.
With the rise of remote work, 63% of companies now have remote employees, according to a 2023 Upwork report. This shift is making cities like Rome more appealing. Remote workers are drawn to places with rich culture, and Rome, with its stunning history and vibrant lifestyle, fits the bill perfectly.
Rome's charm isn't just about its history. The city is seeing a boom in co-working spaces, like Impact Hub, which is a hub for sustainable innovators. These spaces are not just offices; they are communities that encourage collaboration and creativity, making Rome even more attractive to remote professionals.
Another reason Rome is catching the eye of remote workers is its quality of life. Compared to other major European cities, Rome offers a high standard of living at a relatively low cost. This balance makes it an ideal spot for those looking to relocate without breaking the bank.
Technological advancements and changing workforce dynamics are driving the demand for flexible work arrangements. This trend is making culturally rich cities like Rome more appealing to remote workers who crave a blend of work and lifestyle.
As more people seek flexible work options, Rome's allure continues to grow. The city's unique blend of history, culture, and modern amenities makes it a top choice for remote workers looking to settle in a vibrant and affordable European city.
Sources: NextMSC, Immigrant Invest, World's Best Cities
10) Foreign buyers in Rome will increasingly seek eco-friendly properties as sustainability gains importance
In Rome, eco-friendly properties are becoming the hot ticket in the real estate market.
Buyers are snapping up energy-efficient homes in Italy, with these properties selling 20% faster than those without green certifications. This trend is not just a local phenomenon; it's part of a global shift towards sustainable living.
People are increasingly aware of the benefits of reducing their carbon footprint, and this is reflected in the surge in demand for homes with sustainable features. The Italian government is also playing a role by offering incentives like "bonus edilizi case green" to promote eco-friendly construction and renovation.
These government initiatives are part of a larger European mission to achieve climate neutrality by 2050, making energy efficiency a top priority for homebuyers. As a result, more people are looking for properties that align with these sustainability goals.
In Rome, this shift is evident as buyers prioritize homes that not only offer comfort but also contribute to a greener planet. The demand for such properties is expected to grow, as sustainability becomes a key factor in real estate decisions.
For those considering buying property in Rome, it's clear that eco-friendly homes are the future, offering both environmental benefits and potential financial incentives.
Sources: Statista, Carbon Neutral Copy, Trevi Elite
11) Airbnb-style investments in Rome will become less profitable due to stricter short-term rental regulations
Stricter regulations on short-term rentals in Rome are shaking up the Airbnb market.
In recent years, the city has ramped up its enforcement, conducting over 3,000 inspections and issuing more than 1,000 fines, even shutting down 500 illegal listings. This shows that the authorities are not just making empty threats; they're serious about compliance. If you're considering investing in a short-term rental, it's crucial to understand that Rome is tightening its grip.
Looking ahead, new laws are expected to limit the number of rental days and reduce listings in certain neighborhoods. This mirrors actions taken in cities like London and Paris, where annual rental caps have been introduced. Such restrictions can significantly cut into the income potential for hosts, making it a less lucrative venture than it once was.
Moreover, the penalties for non-compliance are becoming steeper, which could discourage illegal operations. The city is also leveraging technology to cross-check listings against its registry of licensed properties. This tech-savvy approach means that hosts will find it increasingly challenging to fly under the radar, potentially leading to a drop in Airbnb listings.
For those eyeing the market, it's essential to weigh these factors carefully. The landscape is changing, and what might have been a profitable investment a few years ago could now be fraught with challenges. Understanding the local regulations and staying compliant is more important than ever.
As Rome continues to crack down, the days of easy Airbnb profits might be numbered. If you're thinking about diving into this market, be prepared for a more regulated environment.
Sources: Short Term Rentalz, BNB Calc, Touch Stay
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12) Rents in Rome's student areas will rise as universities grow their programs
In 2023 and 2024, we saw a significant increase in student enrollment in Italy, with over 1.16 million students in bachelor's programs and 406,000 in master's programs. La Sapienza University of Rome alone had more than 103,000 students enrolled during the 2022/2023 academic year. This surge in student numbers naturally leads to a higher demand for housing, especially in areas close to universities.
Temple University Rome, for instance, has been expanding its facilities, including a new 50-bed residence hall. This expansion is part of a broader trend where universities are growing their programs and infrastructure to accommodate more students. However, the supply of affordable student housing has not kept pace with this growth, as universities provide less than 5% of the needed beds for out-of-town students.
In response to this shortage, many students have been forced to look for temporary accommodations or live farther from campus, as highlighted by a poll from Italy’s National Union of University Students. This situation is exacerbated by property owners opting for short-term Airbnb leases over long-term student rentals, further driving up rents in student-heavy areas.
Sources: Statista, University Living, Temple University Rome, The Matthew Rome
13) Sustainable property values in Rome will rise due to new tax incentives for eco-friendly renovations
Rome is buzzing with eco-friendly renovations thanks to new tax incentives.
These incentives, like the Superbonus tax credit, have made it financially appealing for homeowners to upgrade their properties with sustainable features. Even though the Superbonus will drop to 70% in 2024, it still draws significant interest and investment. This is because energy-efficient homes not only save on bills but also boost property values.
In Rome, the trend is clear. Over 200 schools have been renovated to improve energy efficiency, showcasing a city-wide commitment to sustainability. This isn't just a local phenomenon; it's part of a larger Italian movement towards eco-friendly living. The government's backing of these projects shows a national shift that is likely to positively impact property values.
Looking at historical data, Italy's Ecobonus and Renovation Bonus schemes have successfully encouraged homeowners to invest in energy-efficient upgrades. These investments don't just make homes greener; they also increase their market value. Take Milan's Porta Nuova district, for example, where sustainable design has significantly boosted property appeal.
For those considering buying property in Rome, these tax incentives offer a golden opportunity. Investing in eco-friendly renovations not only aligns with a growing trend but also promises a potential increase in property value. With the government's continued support, sustainable properties are becoming a smart choice for future homeowners.
Sources: Property in Sicily, Vaia, Corinex
14) More foreign investors will focus on Rome's suburbs because of lower entry costs
In recent years, property prices in central Rome have risen significantly, especially in prime areas like the Centro Storico. This increase has made central Rome less affordable for many buyers, even though it remains a bargain compared to other major European cities. As a result, foreign buyers are looking for more affordable options outside the city center.
Suburban areas such as EUR and Monteverde offer lower property prices compared to central Rome. These areas are becoming more attractive due to factors like eco-friendly urban projects and new developments, which are pushing prices upward but still keeping them relatively lower than central areas. This affordability makes suburban areas appealing to foreign investors looking for lower entry costs.
Additionally, suburban areas are experiencing infrastructure improvements, such as new transport links and urban regeneration projects. These enhancements make areas like Pigneto more desirable, further attracting foreign buyers. The Italian government is also promoting property investments with favorable tax incentives, encouraging investment in suburban regions where such incentives can be more beneficial.
Sources: Varso Invest, Kane Bridge News, PwC 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.
15) Demand for urban properties in Rome will decrease as young professionals move to the outskirts
Property prices in central Rome are climbing, with an average of €8,185 per square meter by November 2024.
Renting in Rome isn't getting any cheaper either, with a 6% increase in 2024 alone. This makes city living tough on the wallets of young professionals.
Thanks to better transportation, commuting from Rome's outskirts is now a breeze. New infrastructure and public transport upgrades mean you can enjoy suburban life without missing out on city perks.
In places like Lunghezza and Castelverde, rents are much lower at €10.1 per square meter. This affordability, plus bigger homes, is pulling young professionals out of the city center.
Young professionals are leaning towards quieter, greener suburban areas for a better quality of life. These areas offer the peace and space that city centers can't.
New residential projects in the outskirts are popping up with modern amenities and larger spaces, making them even more attractive. Plus, government incentives sweeten the deal for those considering a move.
Central Rome's congestion and pollution are nudging people towards the suburbs, where they can breathe easier. The rise of remote work gives young professionals the freedom to live where they truly want.
Source: Immobiliare.it
16) Price growth in Rome's historic center will slow as tourists choose cheaper stays outside the city center
In recent years, the historic center of Rome has seen a shift in tourist accommodation preferences. While 2023 marked a record 35 million tourists, many are now opting for more affordable lodging options outside the city center. This trend is evident from the increasing popularity of short-term rentals and bed-and-breakfasts in Rome's suburbs, with over 23,000 registered B&Bs and many more unregistered options available.
The growing demand for budget accommodations in the suburbs is driven by travelers seeking cost-effective lodging. This preference is reflected in the rising number of tourists choosing B&Bs and short-term rentals over traditional hotels, which are often more expensive and located in the historic center. Additionally, the implementation of the city tax in Rome, ranging from €4 to €10 per night, adds to the costs of staying in central areas, further encouraging tourists to explore more affordable options.
Moreover, the real estate market in the historic center is saturated, leading to increased property prices. This saturation, combined with the demand for affordable accommodations, suggests that tourists are looking beyond central areas for budget-friendly options. Travel blogs and social media platforms also promote alternative neighborhoods, highlighting unique experiences and affordable stays outside the historic center.
Sources: Rome Reports, Carpe Diem Tours, Road Genius
17) Property values in the EUR district will drop as businesses relocate to central areas
The EUR district in Rome is seeing fewer businesses setting up shop, which is affecting property values.
Many companies are moving to central Rome, attracted by its vibrant culture and better transport links. This shift is making central areas more desirable, while the EUR district is losing its appeal.
In the EUR area, commercial lease renewals are dropping, showing that businesses are less interested in staying. This trend often leads to more empty spaces and lower property values.
Central Rome's charm and convenience are drawing businesses away from the EUR district, boosting property prices in the heart of the city and leaving the outskirts less competitive.
As businesses flock to central locations, the demand for commercial space in the EUR district is dwindling, which could mean a decline in property values there.
With fewer businesses renewing leases, vacancy rates in the EUR district are likely to rise, typically leading to a drop in property values.
Sources: Global Property Guide, Business Italy, Idealista, Professional Relo
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.