Authored by the expert who managed and guided the team behind the Italy Property Pack
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What is happening in Rome’s real estate market? Are prices climbing or stabilizing? Is the Eternal City still a magnet for international buyers? How are local policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers, from Trastevere to Parioli and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Roman real estate market daily. That’s why we crafted this article: to offer 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 something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Rome's suburban areas will attract more foreign buyers for their affordability compared to city-center properties
In recent years, more foreign buyers have been drawn to Rome's suburban areas due to their affordability compared to city-center properties. In 2024, over 12% of residential property sales in Italy involved international buyers, with a growing interest in Rome's suburbs. This trend is expected to continue in 2025, as more people recognize the value these areas offer.
The price difference between city-center and suburban properties is significant. In 2023, the average price in Rome's city center was €3,200 per square meter, while luxury units in suburbs like Parioli and Trieste were much lower, averaging about €950 and €900 per square meter, respectively. This makes suburban areas more accessible to foreign buyers looking for affordable options.
Foreign buyers are particularly interested in the affordability and larger spaces available in Rome's suburbs. For instance, an average-earning Roman might need only four years' salary to buy an apartment in the suburbs, whereas a Parisian would likely need more than twice that amount. This affordability, combined with the appeal of larger living spaces, makes the suburbs an attractive choice.
Sources: Kane Bridge News, Savills Research
2) Central Rome will see higher rental yields as tourist demand for short-term rentals rises
Rental yields in central Rome are likely to increase as demand for short-term rentals grows among tourists. This trend is supported by the significant rise in tourist arrivals in Rome, which has been consistent over the past few years. The city's rich history, cultural attractions, and culinary delights continue to draw visitors, ensuring a steady flow of tourists.
The popularity of platforms like Airbnb has surged, with 25,720 active listings in Rome as of September 2024. This indicates a strong demand for short-term accommodations, which often have higher occupancy rates compared to long-term leases. For instance, a typical short-term rental in Rome is booked for 307 nights a year, boasting a median occupancy rate of 84%.
Surveys show that tourists prefer staying in central locations, driving up demand for properties in these areas. Central Rome is particularly attractive due to its proximity to major landmarks and amenities. Additionally, reports highlight the profitability of short-term rentals, with a typical host income of €36K in 2023, making it a lucrative opportunity for property owners.
Sources: Global Property Guide, Airbtics
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) Prati’s property prices will stay stable due to its Vatican proximity and established amenities
The Prati district in Rome is a hotspot for property buyers, thanks to its proximity to the Vatican.
In 2024, Prati saw a 6.4% jump in property prices, leading all 27 districts in Rome. This surge highlights the area's popularity among buyers and renters alike. With rental yields steady at 3.0% to 3.5%, it's clear that Prati remains a top choice for those looking to invest or settle down.
Prati's charm isn't just about numbers; it's about lifestyle. The district is packed with schools, parks, and shopping areas, making it a family-friendly spot. Add in some of Rome's finest restaurants and cultural venues, and you've got a recipe for a vibrant community.
Getting around is a breeze, thanks to Prati's strong public transportation links. This ease of access keeps the demand for properties high, as people love the convenience of being well-connected to the rest of the city.
Living in Prati means enjoying a blend of modern amenities and historical allure. The district's established infrastructure ensures that residents have everything they need right at their doorstep, from daily essentials to leisure activities.
With its unique mix of attractions and conveniences, Prati is more than just a place to live; it's a lifestyle choice that continues to draw interest from both locals and international buyers.
Sources: Idealista, Roma Experience, Immobiliare.it
4) Foreign investment in Rome's luxury real estate will rise as it is viewed as a safe haven
In recent years, Rome's luxury real estate market has become increasingly attractive to foreign investors. This trend is largely driven by the strong demand from countries like the United States and Germany, which together accounted for a significant portion of foreign visits for luxury residential properties in Italy. These countries have shown a keen interest in Rome, making it a prime destination for luxury buyers.
Moreover, the market growth projections for Rome are promising. In 2025, the city is expected to experience a 6% growth, fueled by the rising demand for luxury properties and favorable interest rates. This growth is a clear indicator of the increasing appeal of Rome's real estate market to international investors.
Additionally, the perception of Rome as a bargain compared to other major European capitals like Paris and Madrid has been highlighted in consumer surveys. This perception is driving more interest in Rome's luxury real estate market, as foreign buyers see it as a valuable investment opportunity.
Despite economic challenges, the prime rental market in Rome has shown resilience, with prices for luxury properties growing by 4% in 2023 compared to 2019. This stability in property values further reinforces Rome's reputation as a safe haven for real estate investments.
Sources: Idealista, The Wall Street Journal, JamesEdition, Luxury Real Estate, Savills Research
5) Demand for rental properties near universities will rise with more international students arriving
The influx of international students is boosting demand for rental properties near universities.
In Italy, more international students are enrolling in universities, with 96,083 foreign students in the 2023/2024 academic year. Many come from countries like Iran, Turkey, and China, and they often seek housing close to their campuses.
These students prefer living near their universities. At John Cabot University, for example, a large portion of the student body is international, and they typically choose nearby accommodations, further increasing demand in these areas.
Rome, in particular, faces a shortage of student housing. High rents in neighborhoods close to universities make it challenging for students to find affordable places to live, adding pressure to the rental market.
With the rising number of international students, the demand for rental properties near universities is only expected to grow. This trend is especially evident in cities like Rome, where the cost of living is already high and student housing is limited.
For property investors, this means a potential opportunity to cater to the growing need for student accommodations, especially in areas surrounding major universities.
Sources: Statista, John Cabot University, The Matthew Rome
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6) Rome’s property prices will rise moderately due to limited supply and high demand
In recent years, the residential property market in Rome has experienced a moderate increase in prices, primarily due to the dynamics of supply and demand. The demand for housing in Rome has remained strong, as evidenced by the steady rise in median sale prices. For instance, in September 2024, the median sale price of a home in Rome was $178K, marking a 5.2% increase from the previous year. This indicates that despite challenges such as obtaining mortgages, the interest in purchasing homes remains high.
On the supply side, there is a noticeable shortage of new residential developments. New house prices rose by 8% during the year to Q3 2023, reflecting this scarcity. Additionally, the average price for residential properties in Rome increased by 3.47% from December 2023 to November 2024, reaching €3,427 per square meter. This price rise suggests that the available housing supply is not keeping pace with demand, leading to higher prices.
Moreover, urban migration trends contribute to the increased demand for housing in cities like Rome. Although specific population growth figures for Rome are not provided, it is a common trend in many European cities that urban areas attract more residents, further driving up property prices. The combination of these factors—strong demand, limited supply, and urban migration—has led to the moderate increase in residential property prices in Rome.
Sources: Global Property Guide, Redfin, Immobiliare.it
7) Luxury rents will rise as wealthy individuals seek exclusive properties
Luxury rents are likely to increase as high-net-worth individuals seek exclusive properties, and there are several reasons for this trend. First, the demand for luxury properties in Rome has been on the rise. In 2023, prime rents in Rome grew by 2.2%, and this upward trend is expected to continue. Despite this growth, prime rents remain relatively affordable compared to other major Italian cities, making Rome an attractive option for affluent renters.
The number of high-net-worth individuals globally has also been increasing. In 2023, the ultra-wealthy population grew by 7.6%, reaching 426,000 individuals with a combined net worth of $49.2 trillion. This growth is projected to continue, with a significant increase expected by 2028. As more wealthy individuals emerge, the demand for luxury real estate is likely to rise.
Additionally, there is a limited supply of exclusive properties in prime locations. In Rome, the rental market is experiencing a scarcity of available properties, partly due to proposed laws aimed at reducing short-term tourist rentals. This limited supply, combined with high demand, naturally drives up rental prices for luxury properties.
Sources: PR Newswire, Knight Frank, Savills
8) Luxury rental yields will stay stable with steady demand from expats and diplomats
Luxury rental yields in Rome are stable thanks to a steady demand from expatriates and diplomats.
Rome's luxury rental market thrives because of its high occupancy rates. This trend is especially noticeable in areas like the Centro, where yields range from 6.48% to 8.00%. The average gross rental yield in 2024 was 7.19%, showing how attractive these properties are.
The city's diplomatic community, with its many international organizations and embassies, constantly needs housing. This creates a reliable flow of renters who prefer upscale living spaces. The number of foreign citizens in Italy, including expatriates, is also growing, with a 3.9% increase noted at the start of 2023.
Expatriates and diplomats often choose renting over buying because their assignments are usually temporary. This preference is backed by real estate surveys, which highlight the consistent demand for luxury rentals. The Italian government also has policies that support the housing needs of these groups, further ensuring demand remains stable.
Rome's appeal to expatriates and diplomats is not just about the properties; it's about the lifestyle. The city offers a unique blend of history, culture, and modern amenities, making it a top choice for those seeking a temporary home. This combination of factors keeps the luxury rental market vibrant and attractive.
For potential buyers, understanding this dynamic is crucial. Investing in Rome's luxury rental market means tapping into a steady stream of high-quality tenants who value the city's unique offerings. This stability is a key factor for anyone considering property investment in the area.
Sources: Global Property Guide, InfoMigrants, ANSA
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) Luxury property prices in central Rome will rise as limited availability meets high demand from wealthy buyers
Luxury property prices in central Rome are expected to continue rising due to a combination of limited availability and high demand from affluent buyers. In 2023, residential luxury sales in Rome increased by 3.6% compared to pre-pandemic levels, even with a 4% overall price increase. This indicates a strong market where demand is robust despite rising prices.
In the most expensive neighborhood, Centro Storico, average prices in the premium sector reached $1,493 per square foot in 2023. This trend is supported by reports from real estate agencies highlighting that demand for luxury properties in central Rome continues to outpace supply. The limited availability of new housing developments in central Rome is expected to persist, making significant price drops unlikely.
Additionally, foreign investment plays a significant role, with countries like the United States and Germany accounting for a substantial portion of foreign visits for luxury residential property in Italy. This foreign interest supports the high demand for luxury properties in Rome. Furthermore, government initiatives aimed at revitalizing historic buildings and neighborhoods often involve zoning restrictions that limit new developments, maintaining the exclusivity and value of existing luxury properties.
Sources: Kanebridge News, Idealista
10) Rents in central Rome will increase as demand from locals and expatriates grows
Rents in central Rome have been on the rise, and this trend is expected to continue due to high demand from both locals and expatriates. In 2023 and 2024, the average rental price in central Rome was significantly higher than the city's average, with prices reaching €26.37 per square meter in November 2024. This indicates a strong demand for housing in the historic city center.
The increasing population density in Rome, fueled by both Italians and migrants moving to the city, has contributed to this demand. The growing number of expatriates, including Germans, French, Brits, and Americans, also plays a crucial role. These expatriates often prefer living in central areas due to their proximity to amenities and cultural attractions.
Moreover, the limited availability of rental properties in central Rome further drives up prices. The high demand for short-term rentals from tourists adds to the pressure on the housing market. Additionally, younger generations' preference for urban living and the ongoing gentrification in central neighborhoods make these areas more desirable, attracting both locals and expatriates.
Sources: Statista, InterNations, eSales International, Immobiliare.it
11) Virtual reality tours will become more popular, enabling buyers to explore properties remotely
Virtual reality tours have become increasingly popular in the real estate market, especially after the trends observed in 2023 and 2024. During these years, a significant number of home buyers expressed a strong preference for virtual tours over traditional photography. In fact, by 2024, 67% of buyers wanted a virtual tour when looking at listings, and 50% preferred them over photos alone.
The pandemic played a crucial role in accelerating the shift towards remote property exploration. In 2024, nearly half of potential buyers were willing to make an offer based solely on a virtual tour. This trend was already noticeable in 2023, where virtual tours helped reduce the time properties spent on the market, even if they didn't significantly boost sale prices.
Advancements in VR technology have made these tours more accessible and affordable. By 2024, the virtual tourism market had grown rapidly, with companies developing AI-powered 3D virtual tours. This technological progress has allowed real estate companies to integrate VR into their marketing strategies more effectively.
Real estate agencies have reported higher engagement through virtual tours. Listings with virtual tours received 87% more views, and potential buyers spent 5-10 times longer on these websites. This increased engagement highlights the effectiveness of virtual tours in attracting potential buyers.
Sources: PhotoUp, Agent Advice, GlobeNewswire
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12) Foreign buyers will increasingly seek properties offering dual citizenship eligibility
In recent years, we've seen a significant rise in foreign buyers acquiring property in Italy. Back in 2022, foreign investors were responsible for 75% of the €12 billion in real estate transactions, and this trend continued to grow, reaching 79% in 2024. This shows a clear and growing interest from international buyers in the Italian real estate market.
The popularity of Italian dual citizenship programs has also surged. Many people are drawn to the idea of reconnecting with their roots and enjoying the freedom to live in Italy without time restrictions. This interest might have been fueled by past political instability in the U.S. and the rise of remote working during the health emergency.
Moreover, the benefits of dual citizenship, such as visa-free access to numerous countries and cultural immersion, are frequently highlighted in media discussions. This media focus has made dual citizenship an appealing factor for foreign buyers considering property investments in Italy.
Sources: Italics Magazine, The Italian Passport
13) Tax incentives for energy-efficient homes will boost demand for eco-friendly properties
New tax incentives for energy-efficient homes are likely to increase demand for eco-friendly properties because they make these homes more financially attractive to buyers. In the past, the Italian government's "Superbonus" initiative, which offered a 110% tax credit for energy-efficient home renovations, saw significant uptake. This shows that when financial benefits are provided, people are more inclined to invest in eco-friendly homes.
Additionally, the increased media coverage on the benefits of energy-efficient homes has raised awareness about how these homes can reduce utility costs and enhance real estate value. This awareness encourages more people to consider eco-friendly properties as a smart investment. Moreover, the real estate market in Italy is expected to show a premium on eco-friendly properties due to their enhanced value and reduced utility costs, making them even more appealing to potential buyers.
Furthermore, the growing number of architects and builders specializing in sustainable construction means that there will be more high-quality eco-friendly properties available. This specialized workforce will ensure that the demand for such properties can be met. Lastly, the Italian government's ongoing support for initiatives like the "Superbonus" and future plans to expand tax incentives for sustainable housing will continue to drive demand for eco-friendly properties.
Sources: Bonafide Research, Euronews, Statista, Power.com
14) Foreign buyers will increasingly target Rome's historic properties for their unique charm and investment potential
Foreign buyers are flocking to Rome's historic properties for their unique charm and investment potential.
In 2024, 79% of commercial real estate deals in Italy were snapped up by foreign investors, with a keen focus on major cities like Rome. This trend underscores a strong international appetite for Italian real estate, especially in culturally rich areas.
Rome's property market experienced a boom in 2024, with transactions hitting €1.9 billion in the first quarter alone, a staggering 98% increase from the previous year. This surge highlights the demand for properties, particularly historic ones, seen as both charming and valuable investments.
The Italian government sweetened the deal with tax incentives for non-resident buyers, making Rome even more appealing to foreign investors. These incentives are a game-changer, drawing more international interest to the city's historic real estate.
Media outlets and social media have been buzzing about Rome's unique properties. Frequent mentions in travel and lifestyle publications, along with trending hashtags, have showcased the city's cultural significance and investment potential.
This media spotlight has fueled the growing interest among international buyers, who are increasingly drawn to the charm and historical value of Rome's real estate. The buzz is real, and it's making waves in the property market.
Sources: Andreaviliotti, Exclusive RE
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) Remote work trends will boost demand for properties with dedicated office spaces
Remote work has become a major trend, with 28% of employees worldwide working from home in 2023.
In Italy, this shift is evident as millions have embraced remote work, leading to a noticeable change in the real estate market. People are now looking for homes that offer dedicated office spaces, a trend that has been growing steadily.
The demand for such properties is reflected in the Italy Office Furniture Market, which is expanding due to the need for modern home office solutions. This market growth indicates a clear preference for homes that can accommodate a functional workspace.
In Rome, the rise in online sales of home office furniture underscores the importance of having a dedicated workspace at home. This trend is not just about convenience; it's becoming a crucial factor in property buying decisions.
Consumer surveys reveal that home office space is now a key consideration for many buyers. This shift highlights the changing needs of remote workers who prioritize a comfortable and efficient work environment.
As remote work continues to shape lifestyles, the real estate market is adapting to meet these new demands, making properties with office spaces more desirable than ever.
Sources: Statista, Mordor Intelligence, Splashtop
16) Student housing yields in Rome will rise as more international students choose the city for their studies
In recent years, Rome has become an increasingly popular destination for international students. This trend is evident from the growing enrollment numbers in Roman universities. For instance, John Cabot University in Rome reported a significant number of international students in 2024, with students coming from over 75 countries. This influx of international students is a key factor driving the demand for student housing in the city.
The demand for student accommodation in Rome has been rising due to the increasing number of international students. Despite the Italian government's investment in new student beds, the current provision rate remains low, with only 3% in Rome. This undersupply creates a competitive market for student housing, which can lead to higher rental yields for property owners.
Moreover, the Italian government's initiatives to attract more international students, such as investing €960 million in student housing, further support the growing demand. As more students choose Rome for their studies, the limited supply of student housing will likely result in increased yields for investors in this sector.
Sources: Erudera, Loyola University News, GSL Global
17) Suburban property prices may dip slightly as urban living gains appeal
In recent years, we've seen a noticeable shift in the real estate market, particularly in Rome. The demand for urban living has been on the rise, driven by a cosmopolitan lifestyle and the influx of international buyers. This trend has been especially evident in Rome's prime residential market, where both sales and rentals have seen significant growth.
One of the key factors contributing to this shift is the increasing preference for urban amenities and lifestyle. People are drawn to the services, sustainability, and quality of life that urban areas offer. Government initiatives, like the PNRR and Jubilee funds, have also played a role in revitalizing urban centers, making them more attractive places to live.
At the same time, suburban areas are experiencing a decline in population growth. Many people are moving from small towns to larger cities, leading to a transformation of urban environments. This migration trend is further supported by the improved public transportation systems in urban areas, making it easier for people to live and work in city centers.
Sources: Trevi Elite, Idealista, TenantCloud
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.