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As we reach mid-2025, Umbria's property market is showing clear upward momentum with prices averaging €1,158 per square meter, marking a 1.05% increase from last year.
Property prices in Umbria are demonstrating consistent growth patterns, with the region reaching its peak pricing of €1,164 per square meter in February 2025. This steady appreciation, combined with growing international interest and the region's affordability compared to neighboring Tuscany, signals a robust market environment for both investors and lifestyle buyers.
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Property prices in Umbria are experiencing steady growth as of June 2025, with average prices reaching €1,158 per square meter for sales and €8.25 per square meter monthly for rentals.
The market shows consistent upward momentum with annual growth rates between 3-5%, driven by international buyer interest, remote work trends, and Umbria's competitive pricing compared to neighboring Tuscany.
| Market Indicator | Current Value (June 2025) | Year-on-Year Change |
|---|---|---|
| Average Sale Price | €1,158/m² | +1.05% |
| Average Rental Price | €8.25/m²/month | Data varies by location |
| Perugia Province | €1,251/m² | +3.33% |
| Terni Province | €989/m² | Moderate growth |
| Peak Price (Feb 2025) | €1,164/m² | Multi-year high |
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 are the current average property prices in Umbria as of June 2025?
As of June 2025, residential properties in Umbria are averaging €1,158 per square meter for sale properties, with rental properties commanding €8.25 per square meter per month.
Property prices vary significantly between Umbria's two provinces. Perugia province leads the market with average prices of €1,251 per square meter, representing the more expensive option for buyers. Meanwhile, Terni province offers more affordable entry points at €989 per square meter, making it attractive for budget-conscious investors.
The rental market shows similar provincial variations. In Perugia, landlords can expect to receive €8.89 per square meter monthly, while Terni's rental market averages €5.80 per square meter per month. These regional differences create diverse investment opportunities depending on your budget and investment strategy.
Premium locations within major cities command significantly higher prices. New constructions in Perugia's semicentral areas reach €2,800 per square meter, while renovated historic center properties average €2,700 per square meter. Move-in ready homes in prime locations typically trade around €1,600 per square meter.
For buyers seeking renovation projects, opportunities exist at much lower price points. Properties requiring complete renovation can be found from €300 to €1,000 per square meter in Perugia, and up to €800 per square meter in Terni, offering significant value-add potential.
How much have property prices increased in Umbria over the past 12 months?
Property prices in Umbria have shown steady appreciation over the past 12 months, with the overall market recording a 1.05% increase from May 2024 to May 2025.
Different data sources report varying growth rates for the region. Some market analyses indicate annual appreciation rates between 3-5% for 2025, while others suggest a 4% growth compared to the previous year. This variation reflects different measurement methodologies and market segments.
Perugia has outperformed the regional average with a 3.33% price increase from May 2024 to May 2025. The city's prices climbed from approximately €1,265 per square meter to €1,305 per square meter, reaching historic highs. This stronger performance reflects Perugia's status as the regional capital and its appeal to both domestic and international buyers.
The market reached its recent peak in February 2025 at €1,164 per square meter, representing the highest level in over two years. This peak followed a steady recovery from the July 2023 low of €1,117 per square meter, demonstrating consistent upward momentum.
Transaction volumes have also increased significantly, with property sales growing 14.2% in 2024 compared to the previous year. This surge in activity indicates strong buyer confidence and suggests the price increases are supported by genuine market demand rather than speculation.
Which areas in Umbria are experiencing the fastest price growth in 2025?
Assisi is emerging as the fastest-growing market in Umbria, with its historic center experiencing an 11.29% rental price increase from October 2023 to October 2024.
| Location | Property Type | Growth Rate | Key Driver |
|---|---|---|---|
| Assisi Centro Storico | Rentals | +11.29% | Spiritual tourism |
| Assisi Centro Storico | Sales | +3.17% | International demand |
| Perugia City | Sales | +3.33% | Regional capital status |
| Montefalco | Rural estates | Strong growth | Wine industry recognition |
| Lake Trasimeno | Waterfront | Above average | Lifestyle appeal |
Montefalco is gaining significant traction as a wine region investment destination. The area's increasing international recognition in the wine industry is driving demand for vineyard properties and rural estates, though specific percentage increases aren't available in current data.
The Lake Trasimeno area continues to attract premium buyers seeking waterfront properties. This submarket typically commands prices 20-30% above regional averages due to its unique lakeside location and lifestyle appeal.
It's something we develop in our Italy property pack.
What property types are showing the strongest price appreciation in mid-2025?
Renovated, move-in ready properties are leading the market with an 11% increase in sales during 2024, reflecting strong buyer preference for updated homes.
Luxury properties are experiencing exceptional performance in Umbria's market. High-end villa and estate transactions have increased significantly, with some restored historical properties reaching €3.95 million. This segment attracts international buyers seeking authentic Italian lifestyle investments with modern amenities.
Properties with dedicated home office spaces are commanding premium prices as remote work becomes permanent for many buyers. The shift is particularly pronounced among international purchasers who can now work from their Umbrian homes while maintaining careers in other countries.
Rural farmhouses and agricultural estates are seeing renewed interest, especially from Northern European and American buyers. These properties offer lifestyle benefits combined with potential agricultural income, making them attractive long-term investments. Renovation projects in rural areas start from €300 per square meter, offering significant upside potential.
New construction properties in prime urban locations continue to achieve top prices. In both Perugia and Terni, new builds reach €2,800 per square meter, representing the ceiling of local markets and indicating strong demand for modern, energy-efficient homes.
What are the price forecasts for Umbria's property market in 2026?
Market experts project continued moderate growth for Umbria's property market in 2026, with annual appreciation rates expected to remain in the 3-5% range.
Several factors support this positive outlook for 2026. The European Central Bank's more favorable interest rate environment is expected to maintain accessible mortgage conditions, supporting buyer demand. Additionally, the region's growing recognition as an affordable alternative to Tuscany continues attracting international investors.
Renovation costs are projected to reach €1,200 per square meter by late 2025, which will impact total investment calculations for buyers considering fixer-upper properties in 2026. This increase in renovation costs may push more buyers toward move-in ready properties, potentially accelerating price growth in that segment.
The 2026 outlook also factors in changes to Italy's building renovation incentives. Tax deductions for renovations will decrease to 36% for primary residences and 30% for investment properties in 2026-2027, down from current levels. This reduction may create a surge in renovation activity in late 2025, potentially affecting supply dynamics in 2026.
Remote work trends are expected to continue supporting demand through 2026, with 42% of US workers now operating remotely. This structural shift in work patterns provides ongoing support for Umbria's lifestyle-oriented property market, particularly in rural areas with good internet connectivity.
How do current mortgage rates affect Umbria's property market?
As of June 2025, the European Central Bank's monetary policy adjustments have created more favorable mortgage conditions, contributing directly to the 14.2% growth in property transactions recorded in 2024.
Current mortgage rates in Italy for non-residents typically range from 3.5% to 5.5%, depending on the loan-to-value ratio and buyer profile. These rates represent a significant improvement from the peak rates seen in 2023, making property purchases more accessible for both domestic and international buyers.
The improved financing environment particularly benefits international buyers, who often require mortgages for their Umbrian property purchases. Banks are generally willing to lend up to 60-70% of the property value to non-resident buyers, though terms vary based on individual circumstances and property types.
First-time buyers and those purchasing primary residences benefit from additional incentives, including reduced notary fees and potentially better mortgage terms. These advantages make Umbria particularly attractive for young Italian families looking to enter the property market.
The combination of moderate property prices and improved mortgage accessibility has created a favorable buying environment. With Umbria's average price of €1,158 per square meter significantly below the national average of €2,104, buyers can access quality properties with manageable mortgage payments.
Where did property prices increase the most in Umbria during the past year?
Assisi's historic center recorded the highest growth rates in Umbria, with rental prices surging 11.29% and residential sales prices increasing 3.17% year-over-year.
This exceptional performance in Assisi reflects several unique factors. The city's spiritual significance continues attracting international visitors and residents, creating sustained demand for both short-term rentals and permanent residences. The UNESCO World Heritage designation adds prestige and ensures strict development controls, limiting supply.
Perugia, the regional capital, achieved the second-strongest performance with a 3.33% increase in average property prices. The city's prices rose from €1,265 to €1,305 per square meter, driven by its universities, cultural attractions, and role as Umbria's economic center.
Specific neighborhoods within these cities showed even stronger growth. New construction areas in Perugia's semicentral zones commanded prices up to €2,800 per square meter, while renovated properties in historic centers reached €2,700 per square meter, indicating premium market segments are particularly robust.
Emerging wine regions like Montefalco are also experiencing above-average growth, though specific percentages aren't available. These areas benefit from increasing international recognition of Umbrian wines and growing demand for vineyard properties from lifestyle investors.
How does Umbria's property market compare to neighboring regions in 2025?
Umbria offers exceptional value compared to neighboring regions, with average prices of €1,158 per square meter versus Tuscany's €2,568 and Le Marche's €1,617.
The price differential with Tuscany is particularly striking, representing more than a 100% premium for Tuscan properties. This massive gap makes Umbria increasingly attractive for buyers seeking authentic central Italian experiences without Tuscan price tags. Many international buyers now view Umbria as offering similar cultural and lifestyle benefits at half the cost.
Compared to Le Marche, Umbria remains approximately 28% more affordable on average. However, Le Marche offers coastal properties that command premium prices, while Umbria's landlocked geography means all properties compete on inland market dynamics. This makes direct comparisons complex, as Le Marche's averages include both expensive coastal and affordable inland areas.
Within Italy's national context, Umbria ranks among the more affordable regions. The national average of €2,104 per square meter is 82% higher than Umbria's prices. Only southern regions like Calabria (€948/m²) and Sicily (€1,162/m²) offer comparable or lower prices, though these lack Umbria's central location and accessibility.
It's something we develop in our Italy property pack.
What impact do foreign buyers have on Umbria's property prices in 2025?
International buyers are projected to account for 20% of property purchases in Umbria by the end of 2025, significantly impacting market dynamics and price trends.
Northern European, American, and British investors lead foreign interest in Umbria. These buyers typically seek properties in the €300,000 to €800,000 range, focusing on character properties, rural estates, and historic town houses. Their purchasing power often exceeds local buyers, contributing to price appreciation in desirable areas.
Foreign buyers show strong preference for renovated, move-in ready properties with modern amenities. This demand has driven the 11% increase in sales of updated properties during 2024, as international purchasers often lack the local connections and language skills needed for renovation projects.
The remote work revolution has transformed foreign buyer profiles. Rather than just seeking vacation homes, many international purchasers now buy primary residences in Umbria, working remotely while enjoying Italian lifestyle. This shift from seasonal to year-round occupation strengthens local economies and property values.
Luxury property segments particularly benefit from foreign investment, with high-end transactions increasing substantially. International buyers drive demand for premium villas and estates, with some properties reaching €3.95 million. This top-end activity creates a halo effect, lifting values across broader market segments.
How are renovation costs affecting Umbria's property market in 2025?
Renovation costs in Umbria are projected to average €1,200 per square meter by late 2025, significantly impacting buyer decisions and market dynamics.
| Renovation Type | Cost per m² | Typical Property Size | Total Investment | Market Impact |
|---|---|---|---|---|
| Basic Renovation | €600-800 | 150m² | €90,000-120,000 | Still attracts investors |
| Standard Renovation | €1,000-1,200 | 150m² | €150,000-180,000 | Buyers prefer ready homes |
| Luxury Renovation | €1,500-2,000 | 200m² | €300,000-400,000 | Limited to high-end buyers |
| Historic Property | €1,800-2,500 | 250m² | €450,000-625,000 | Requires specialist buyers |
| Energy Upgrade Only | €200-400 | 150m² | €30,000-60,000 | Popular for quick flips |
Rising renovation costs are shifting buyer preferences toward move-in ready properties. The price gap between properties requiring renovation (€300-1,000/m²) and completed homes (€1,600/m²) is narrowing when total project costs are considered, making renovated properties increasingly attractive.
Tax incentives partially offset renovation expenses. The 2025 Budget Law provides 50% deductions for primary residence renovations and 36% for investment properties, declining to 36% and 30% respectively in 2026-2027. This tapering of incentives may accelerate renovation activity in late 2025.
Professional renovation services are in high demand, with waiting times extending for quality contractors. This scarcity of skilled labor contributes to cost increases and project delays, further discouraging buyers from taking on major renovation projects without local connections and project management experience.
What are experts predicting for Umbria's property market over the next 5 years?
Real estate professionals express cautious optimism about Umbria's 5-year outlook, projecting sustained moderate growth driven by lifestyle preferences and remote work trends.
Market fundamentals support continued appreciation through 2030. Umbria's combination of affordability relative to Tuscany, authentic Italian character, and growing international recognition creates a stable foundation for price growth. Experts characterize the region as offering "value proposition" opportunities unavailable in more saturated markets.
Infrastructure development plans will enhance Umbria's accessibility and appeal. Improvements to transportation links with Rome and Florence, coupled with expanding high-speed internet coverage in rural areas, address two key limitations that have historically constrained growth. These developments should support price appreciation across the region.
Demographic shifts favor Umbria's market positioning. As baby boomers seek retirement destinations and millennials embrace remote work, Umbria's lifestyle offerings align perfectly with evolving preferences. The region's authentic character, cultural richness, and relative affordability create compelling value propositions for both cohorts.
Climate considerations may also boost Umbria's appeal. As Mediterranean coastal areas face increasing heat and water stress, Umbria's inland position and higher elevations offer more comfortable year-round conditions. This climate resilience could become an increasingly important factor in property valuations through 2030.
Which property features command premium prices in Umbria as of June 2025?
Properties with dedicated home office spaces and high-speed internet connectivity command premiums of 10-15% above comparable properties without these features.
Energy efficiency has become a crucial value driver in Umbria's market. Properties with A or B energy ratings achieve prices 15-20% higher than similar homes with lower ratings. Solar panels, efficient heating systems, and modern insulation particularly appeal to international buyers conscious of operating costs and environmental impact.
Swimming pools remain the most sought-after amenity, adding 20-30% to property values in rural areas. However, buyers increasingly demand eco-friendly pool systems with low maintenance requirements. Properties with well-designed pool areas including outdoor kitchens and entertainment spaces command the highest premiums.
Panoramic views of Umbria's rolling hills, medieval towns, or Lake Trasimeno add substantial value. Properties with unobstructed views typically achieve 25-35% premiums over similar properties without views. South-facing orientations that maximize these views while providing optimal natural light are particularly prized.
It's something we develop in our Italy property pack.
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.
Yes - Property prices in Umbria are going up, showing consistent growth across most market segments as we reach mid-2025.
The data clearly indicates upward price momentum with average prices reaching €1,158 per square meter, representing a 1.05% to 4% annual increase depending on the measurement methodology. Combined with strong transaction volumes, international buyer interest, and favorable economic conditions, Umbria's property market demonstrates healthy appreciation that experts expect to continue through 2026 and beyond.
Sources
- Immobiliare.it - Umbria Real Estate Market Report
- Wikicasa - Umbria Property Valuations
- CercoCasa Umbria - October 2024 Market Prices
- Globihome - Why Invest in Umbrian Real Estate
- Perugia Tomorrow - Umbria Real Estate Market Analysis
- InvestRopa - Umbria Real Estate Trends
- InvestRopa - Umbria Real Estate Market Overview
- Arletti Partners - 2025 Budget Law Building Bonuses
- Antognolla - Real Estate Trends in Umbria
- The Realty School - Remote Work Impact on Real Estate
-Property Prices in Umbria: Current Market Analysis
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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.