Authored by the expert who managed and guided the team behind the Italy Property Pack
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What is happening in Umbria’s real estate market? Are prices going up or down? Is Perugia still a hotspot for foreign investors? How is Italy’s government impacting real estate policies and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Assisi to Orvieto and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Umbrian real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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) Property values in Assisi will rise as it gains popularity with tourists and spiritual seekers
Assisi is booming with tourists and spiritual seekers, making it a prime spot for property investment.
Every year, over five million people flock to Assisi, and this number is climbing fast. This surge in visitors is pushing up the demand for places to stay and local services. The town is buzzing with new developments to keep up with this influx, and the government is all in, promoting Assisi as a must-visit cultural and spiritual destination.
In the heart of Assisi, known as Centro Storico, rental property prices have jumped by 11.29% from October 2023 to October 2024. This area is particularly sought after, reflecting a broader trend in the town's real estate market. Residential property prices have also seen a rise, going up by 3.17% in the same timeframe.
With the town's infrastructure getting a facelift, Assisi is becoming even more appealing to both visitors and investors. The local government is backing this transformation, ensuring that the town can handle the growing number of tourists. This support is crucial as it not only enhances the visitor experience but also boosts investor confidence.
Assisi's charm isn't just in its historical and spiritual allure; it's also in its evolving landscape. The town is adapting to meet the needs of its visitors, which in turn is driving up property values. This makes it an attractive option for those looking to invest in a place that's both culturally rich and economically promising.
For anyone considering buying property in Assisi, now might be the perfect time. With the town's popularity on the rise and property values following suit, investing here could be a wise move. The combination of cultural significance and economic growth makes Assisi a unique and appealing choice.
Sources: Immobiliare.it, The Telegraph, Italy Notes
2) New tax incentives will boost investment in renovating older homes
In 2023 and 2024, the Italian government rolled out new home bonuses like the Ecobonus and Renovation Bonus, offering tax deductions from 50% to 85% for property improvements.
Even though the Italian construction industry is slowing down, new residential building permits in Umbria have stayed stable. This suggests that people are still keen on renovating properties, likely because of these tax breaks. Foreign investors and retirees are especially interested in fixing up unique properties like farmhouses and historical villas, often using these incentives.
Expect a rise in demand for construction materials and home improvement products in Umbria as more property owners jump on these tax incentives. The market is balanced, with a steady flow of buyers and sellers, showing that renovation activities are ongoing. Media coverage in Italy often highlights these tax benefits, boosting awareness and encouraging more investments in older homes.
In Umbria, the charm of historical villas and farmhouses is a big draw for foreign investors. These properties offer a unique blend of history and beauty, making them attractive renovation projects. The tax incentives make it financially appealing to invest in these older homes, turning them into modern living spaces while preserving their historical essence.
Local experts note that renovating older properties can significantly increase their market value. This is especially true for those who take advantage of the tax incentives, as the cost savings can be substantial. The combination of financial benefits and the allure of owning a piece of history makes these properties a hot commodity.
For those considering buying property in the Italian countryside, these tax incentives are a game-changer. They not only make renovations more affordable but also enhance the overall investment value. Investing in older homes has never been more appealing, thanks to these government-backed incentives.
Sources: Adigrat, Italian Real Estate Lawyers
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.
3) Umbria's rental yields will rise as tourists prefer vacation rentals to hotels
Rental yields in Umbria are set to rise as more tourists choose vacation rentals over hotels.
In early 2023, Umbria saw a 55.5% jump in tourist numbers compared to the previous year. This surge means more people are looking for places to stay, and vacation rentals are catching their eye.
Platforms like Airbnb are booming in Umbria, especially in spots like Assisi. Here, short-term rentals boast an average occupancy rate of 44% and a daily rate of $150. This shows that vacation rentals are not only popular but also offer better rates and occupancy than many hotels.
Travelers today crave genuine local experiences, something vacation rentals deliver better than hotels. This shift in preference is driving up demand for vacation homes in Umbria. Plus, with more people working remotely, tourists can stay longer, which boosts rental yields even more.
These trends are reshaping the market, making vacation rentals a smart choice for both tourists and property investors. The combination of increased tourism, the appeal of local experiences, and the flexibility of remote work is creating a perfect storm for rental growth.
Sources: Schengen News, AirDNA, Studentsville
4) Urban rents will rise as more people relocate to cities for job opportunities
As more people move to cities for job opportunities, urban rents are likely to increase due to several interconnected factors.
First, the urban population growth in Italy, including Umbria, has been steadily rising. In 2023, the urban population growth rate in Italy was 0.4058%, indicating a consistent increase in the number of people living in cities. This trend suggests that more people are attracted to urban areas, likely due to the availability of jobs and better living conditions.
Second, economic reports highlight that job market growth is closely linked to urbanization. In Umbria, the real GDP per capita has shown resilience, suggesting potential job creation and economic development. This economic growth attracts more people to cities, increasing the demand for housing.
Moreover, the real estate market in Umbria reflects this growing demand. In November 2024, the average price for residential rental properties increased by 3.76% compared to December 2023. The highest rental prices were observed in Perugia, indicating high demand and the potential for further rent increases.
Sources: Immobiliare.it, City Population, Trading Economics, Sviluppumbria
5) American buyers will increasingly seek properties in Italy's less touristy areas
In recent years, there has been a noticeable increase in the number of Americans interested in purchasing property in Italy. This trend is particularly evident in regions like Umbria, which are less touristy compared to other parts of the country. Several factors contribute to this growing interest.
Firstly, the affordability of real estate in Umbria is a significant draw. The average home price in Umbria is considerably lower than the national average, making it an attractive option for American buyers looking for cost-effective investments. Towns such as Assisi and Castiglione del Lago offer affordable prices per square meter, which appeals to those seeking value for money.
Additionally, the desire for a more authentic and peaceful lifestyle is driving Americans to explore less crowded areas. Surveys have shown that many Americans prefer the serene and picturesque environment that regions like Umbria provide. This aligns with the increasing number of inquiries from American clients noted by real estate agents in the area.
Moreover, the rise of remote work has made it feasible for Americans to live abroad while maintaining their jobs. This flexibility allows them to consider relocating to places like Umbria, where they can enjoy a quieter lifestyle without sacrificing their professional commitments.
Sources: Idealista, Realpoint Property, Studentsville, Italian Real Estate Company
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6) Perugia properties will see increased demand as it gains fame as a cultural and educational hub
Properties in the Perugia area are expected to see a surge in demand due to its growing reputation as a cultural and educational hub. In recent years, the University of Perugia has seen a significant increase in enrollment, with 26,732 students as of February 2024. This influx of students and their families is likely to drive up demand for residential properties in the area.
The cultural scene in Perugia has also been thriving, with a rising number of cultural events and festivals, such as the Umbria Jazz Festival in July 2025. These events not only attract visitors but also enhance the cultural vibrancy of the area, making it an attractive place to live.
Moreover, the real estate market reports from November 2024 show an increase in interest in properties near educational institutions, with a 7.45% rise in the average price asked for residential properties compared to December 2023. This trend indicates that properties near universities are in high demand, further supporting the expected surge in property demand in Perugia.
Sources: Immobiliare.it, Edurank, Porta Perugia
7) Online property platforms will simplify buying, easing foreign investment in Umbria
Online property platforms are transforming the way people buy homes in Italy, especially in regions like Umbria.
In recent years, there's been a noticeable uptick in the number of properties listed in Umbria on international real estate websites. This isn't just a random spike; it shows that foreign investors are increasingly eyeing Umbria as a prime spot for property purchases. The charm of its rolling hills and historic towns is now more accessible than ever, thanks to these digital platforms.
Foreign buyers are flocking to online tools for their property transactions. Why? Because these platforms make the process smoother and faster. Imagine being able to explore a potential home through a virtual tour without leaving your couch. It's a game-changer, especially for those who can't just hop on a plane to Italy at a moment's notice.
Digitalization in real estate isn't just about convenience; it's about speed. With everything from documentation to negotiations happening online, transaction times have significantly decreased. This means you can go from browsing to buying in a fraction of the time it used to take.
For those considering a move to Umbria, the digital shift in real estate is a boon. Online platforms are making it easier for international buyers to navigate the complexities of purchasing property in a foreign country. It's like having a personal guide through the entire process, minus the hassle.
Sources: eSales International, Handsome Properties International, Italian Business Lawyers
8) Umbria will attract more foreign buyers due to its affordability compared to Tuscany
In recent years, foreign buyers have shown a growing interest in Umbria, primarily due to its affordability compared to Tuscany. As of January 2024, the average property price in Tuscany was €2,451 per square meter, which is relatively high. In contrast, Umbria is known for offering more affordable property options, making it an attractive alternative for those looking to invest in Italian real estate.
The Gate-away.com annual report from 2023 highlighted a significant increase in enquiries for properties priced up to €100,000, which accounted for 40.78% of total requests. This trend suggests a rising interest in less expensive regions, potentially including Umbria. Additionally, the cost of living in Tuscany is higher than the national average, further emphasizing Umbria's appeal as a more budget-friendly option.
Umbria's real estate market is often described as offering more affordable options compared to other Italian regions. This affordability, combined with the region's tranquil environment, makes it an attractive choice for foreign buyers seeking a second home or retirement property. The increasing popularity of Umbria as a destination for sustainable and cultural tourism also contributes to its appeal, potentially driving up demand for properties in the area.
Sources: Gate-away.com, Livingcost.org
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) British buyers will keep showing interest in Umbria despite Brexit challenges
British buyers are still drawn to Umbria despite Brexit challenges.
Real estate agencies have noticed a steady demand from British clients, showing their ongoing interest in the region. Umbria's charm lies in its affordability compared to places like Tuscany, offering lower property prices that appeal to those seeking a budget-friendly lifestyle.
The British pound's resilience against the euro further sweetens the deal, making property purchases in Umbria more financially viable for UK buyers. This financial advantage is a key factor in their continued interest.
Beyond the numbers, there's a cultural connection at play. Many Brits have embraced the Italian lifestyle, with a significant number choosing Umbria as their new home. This cultural affinity and appreciation for the Italian way of life enhance the region's appeal.
Umbria offers a peaceful retreat with its stunning landscapes and rich history, providing a perfect escape from the hustle and bustle. This serene environment is a major draw for those looking to relocate or invest in a second home.
British buyers are not just investing in property; they're investing in a lifestyle that promises tranquility and a sense of belonging. This enduring interest suggests that Umbria will continue to be a favored destination for UK nationals.
Sources: Savills, British Embassy in Rome, Idealista
10) Asian investors will start exploring Umbria to diversify their European property portfolios
Asian investors are increasingly eyeing European real estate, with a notable surge in interest over the years.
Thanks to better flight connections between Asia and Italy, it's now much easier for investors to visit and explore places like Umbria. This direct access is key for those wanting to get a real feel for the market and see potential investments firsthand.
Investors from Asia are starting to look beyond the usual spots like London and Paris. They're now considering central and eastern Europe, including Italy. This shift means regions like Umbria are becoming more attractive due to their unique cultural and lifestyle offerings.
Umbria stands out because of its affordable real estate market, which is perfect for investors wanting to diversify without breaking the bank. Plus, the Italian government might offer incentives for foreign property buyers, making Umbria even more appealing.
With more media attention and a rise in Asian tourists visiting Umbria, the region is gaining recognition as a potential investment hotspot. This, along with successful Asian investments in other parts of Italy, points to a bright future for Asian investors in Umbria.
Sources: Esales International, Dentons
11) Urban yields will dip slightly as property prices outpace rental rate growth
Property prices in Umbria's urban areas have been climbing steadily over the past few years.
In November 2024, the average price for residential properties hit €1,162 per square meter, showing a noticeable increase from the previous year. This trend is even more evident in Perugia, where prices have reached €1,210 per square meter, making it a hotspot for potential buyers.
However, rental rates haven't kept up with this surge in property prices. While the average rental price in Umbria rose by 3.76% during the same period, reaching €7.72 per month per square meter, it's clear that rental yields are lagging behind.
Local real estate agencies are pointing out this gap between property price growth and rental income. This suggests that yields might decline as property values continue to rise faster than rental rates.
Economic forecasts for Italy predict that property prices will keep appreciating, which could further widen this gap. This means that while property values are on the rise, rental income might not see the same growth, affecting overall yields.
Sources: Immobiliare.it, Urban Land Institute
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12) Luxury property yields will stay stable as high-end properties retain their value
The luxury real estate market in Italy, particularly in regions like Umbria, has shown remarkable resilience and growth over the past few years. In 2023, prestigious properties made up 2.7% of the entire residential property supply, marking a 0.5% increase from 2022. This indicates a growing demand for high-end properties, which helps maintain their value.
Almost 90% of prestigious properties are located in the northern and central regions of Italy, with the Northwest holding the largest share at 36%, followed by the Center at 32.5%, and the Northeast at 20%. This limited supply of luxury homes contributes to the stability of luxury property values, as demand continues to outpace supply.
High-net-worth individuals continue to show interest in investing in luxury properties in Umbria, which is a testament to the region's appeal and the stability of its luxury property market. This sustained interest, coupled with the region's desirable tourism trends and infrastructure enhancements, further supports the stability of yields in the luxury segment.
Sources: Global Property Guide, Galerie Magazine
13) Property prices in Umbria's urban areas will steadily rise as more people relocate for work and education
Urban areas in Umbria are expected to see a steady increase in property prices as more people move to cities for work and education. In recent years, the population trend in Umbria has shown a slight decline overall, but urban centers like Perugia have maintained a stable population. This suggests that people are gravitating towards cities, likely due to better opportunities and amenities.
Employment growth in cities such as Perugia is a significant factor driving this urban migration. As industries expand and create more job opportunities, people are naturally drawn to these areas for work. This influx of people increases the demand for housing, which in turn pushes property prices up. Additionally, the presence of popular universities and educational institutions in urban areas attracts students, further contributing to the demand for housing.
Government investment in urban infrastructure and development also plays a crucial role. By improving the quality of life in cities through better infrastructure, these areas become more desirable places to live. This desirability is reflected in the rising property values. Moreover, reports of a housing shortage in urban areas like Perugia and Assisi highlight the imbalance between supply and demand, which is another reason for the increase in property prices.
Sources: Immobiliare.it, Urbistat, Realpoint Property
14) Terni will draw more investors with lower entry prices and potential for higher returns compared to other parts of Umbria
Terni is catching the eye of investors thanks to its affordable property prices compared to other areas in Umbria.
In 2023 and 2024, this trend picked up speed, with Terni's property prices being notably lower than those in Perugia, Umbria's capital. This affordability makes Terni a prime choice for those looking to break into the market.
Property values in Terni have been on the rise, thanks to the city's expanding infrastructure and economic growth. These factors are pushing property values up, offering a promising outlook for investors. Plus, rental yields here are higher than in other parts of Umbria, making Terni a smart pick for those interested in rental income.
Real-life examples of successful investments in Terni underscore its potential. Take the WiseGRID project, for instance. This initiative, which focuses on smart grid tech and renewable energy, has made Terni a magnet for investment. The project's success hints at Terni's growing appeal as a real estate hotspot.
Investors are noticing the benefits of Terni's strategic developments. The WiseGRID project isn't just about energy; it's about creating a thriving environment for property investments. This has led to significant interest and investment in the area.
With its combination of low entry prices and promising returns, Terni is becoming a key player in the real estate scene. Investors are increasingly drawn to its potential for high returns, making it a region to watch.
Sources: WiseGRID, Snam Rete Gas
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.
15) Umbria’s luxury property prices will rise as high-net-worth individuals seek exclusive homes
The luxury property market in Umbria is on the rise, with prices expected to increase as high-net-worth individuals seek exclusive homes.
In November 2024, the average price for residential properties in Umbria hit €1,162 per square meter, showing a 2.38% increase from December 2023. This uptick is fueled by a growing demand for luxury homes in the region.
High-net-worth individuals are increasingly investing in second homes in Italy, with 15% of their assets typically allocated to real estate. There's a noticeable interest in properties valued at €1 million or more, especially in Umbria, where exclusive properties are limited, naturally driving up demand and prices.
Post-pandemic, affluent buyers are leaning towards rural and less crowded areas, making Umbria a prime choice. The region offers a unique blend of rural tranquility and luxury amenities, appealing to those seeking a serene yet opulent lifestyle.
Italian culture and lifestyle add to Umbria's allure, attracting buyers who see these villas as stable investments with long-term value. The charm of the countryside combined with modern comforts makes it an irresistible option for many.
With its picturesque landscapes and rich cultural heritage, Umbria is becoming a hotspot for luxury real estate, drawing in those who value both exclusivity and a connection to nature.
Sources: Immobiliare.it, WeWealth, Mordor Intelligence
16) Buyers will prioritize health and wellness, boosting demand for properties with outdoor space
In 2023 and 2024, the demand for outdoor spaces has noticeably increased as people focus more on health and wellness.
People are looking for homes with gardens or terraces, and since 2020, interest in these features has surged by 50%. This shift shows how much we value living spaces that boost our well-being.
Many homeowners want to create versatile outdoor areas. In 2024, 64% of homeowners aimed to develop such spaces, and this trend is only picking up speed. By 2025, the outdoor living market is expected to hit $26.8 billion, showing a strong preference for homes with bigger outdoor areas.
Surveys from 2024 reveal that 75% of millennials are keen on outdoor amenities like kitchens. These features are not just for fun; they’re essential for relaxation and mental health, making them a key part of home design.
Media coverage has highlighted the health perks of outdoor living, with a noticeable rise in 2024 articles about the mental health benefits of nature access. This has pushed more people to look for homes that offer these advantages.
As more people prioritize health, the desire for outdoor space will continue to grow, making it a top priority for homebuyers.
Sources: National Association of Realtors, Veranda
17) Umbria's aging population will boost demand for smaller, more manageable properties
The aging population in Umbria is leading to an increased demand for smaller, more manageable properties. This trend is largely driven by the demographic shifts in the region, where the population has been steadily declining, with an average annual variation of -0.65% from 2017 to 2022. As people age, they often seek homes that are easier to maintain and offer comfort and accessibility.
In 2023 and 2024, the real estate market in Umbria began to reflect these demographic changes. Older residents, particularly retirees, showed a preference for properties that are not only smaller but also well-located, offering proximity to essential services like healthcare and shopping. This shift in preference is supported by real estate market data, which indicates an increase in sales of smaller properties that provide unique characteristics such as historical authenticity and scenic views.
Moreover, interviews with real estate agents in Umbria have highlighted a growing interest in properties that offer flexible living spaces and modern features. This suggests that the demand for smaller, more manageable properties is not just about size but also about the quality of life they can provide. As the population continues to age, the need for homes that cater to the specific needs of older residents becomes more pronounced.
Sources: Urbistat S.r.l., Statista, Buying Property in Umbria
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.