Authored by the expert who managed and guided the team behind the Italy Property Pack
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Where are the best places to invest in Umbria right now? Is Perugia still the top pick, or are towns like Assisi, Spoleto, and Orvieto gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the region. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Umbria and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Montefalco is gaining interest for its famous wine region and rising demand for vineyard properties
Montefalco is quickly becoming a prime destination for property investors, especially those eyeing vineyard estates.
One reason for this surge is the rising property prices in the area, with estates like Casale Montefalco and Olivicola Umbra fetching impressive sums. This trend signals a strong demand in the market, making it an attractive option for investors.
The allure of Montefalco is also fueled by the increasing number of wine producers setting up shop, particularly those involved in crafting the renowned Sagrantino di Montefalco. This has caught the attention of industry giants like Antinori and Ferrari, who are now part of the local scene.
Montefalco's status as a top wine destination is further cemented by its international acclaim. A shining example is Tenute Lunelli's Carapace 2018, which snagged a Gold Medal at the Decanter World Wine Awards 2023, underscoring the region's wine excellence.
Investors are drawn not just by the wine but by the prestige associated with owning a piece of this celebrated region. The combination of high-quality wine production and the presence of big-name producers makes Montefalco a compelling choice.
With its rich wine culture and growing reputation, Montefalco offers a unique opportunity for those looking to invest in a region that promises both financial returns and cultural richness.
Sources: World of Fine Wine, Vineyards Wineries, Tenute Lunelli
2) Spello is gaining popularity for its picturesque setting and increasing demand for vacation rentals
Spello is becoming a popular destination, and there are a few key reasons for this trend. First, the number of vacation rental listings in Spello has significantly increased. Back in 2023, there were only 20 properties available for rent on Airbnb, but by January 2025, this number had grown to 120. This shows a clear rise in demand for vacation rentals in the area.
Another reason for Spello's growing popularity is the town's picturesque setting and unique events. The Infiorata, a famous flower festival, attracts between 50,000 to 80,000 visitors annually. This event, along with others like Hispellum, draws tourists who are eager to experience Spello's charm and beauty. Additionally, Spello's central location makes it a convenient base for exploring other popular destinations in Umbria, such as Perugia, Assisi, and Spoleto.
Moreover, Spello has received positive reviews from tourists, which further boosts its appeal. On Airbnb, the town has accumulated 2.5K reviews, indicating high satisfaction among visitors. The availability of family-friendly and pet-friendly rentals, along with amenities like pools and dedicated workspaces, contributes to these positive reviews and high occupancy rates.
Sources: Airbnb, Maddy's Avenue, Exploring Umbria
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) Castiglione del Lago is gaining attention for its lakeside properties and strong seasonal rental income potential
Castiglione del Lago has become increasingly popular for its lakeside properties, and there are several reasons for this trend. In 2023 and 2024, the real estate market in the area saw a significant increase in property sales, particularly for lakeside properties. This growing demand is reflected in the average price for properties, which was €1,223 per square meter in November 2024.
The potential for strong seasonal rental income is another factor driving interest in Castiglione del Lago. Rental yields for lakeside properties have been rising, with the average rental price reaching €6.60 per month per square meter in November 2024. This is higher than in many other municipalities in the province of Perugia, indicating a lucrative opportunity for property owners.
Tourism growth in Castiglione del Lago and its surrounding areas has also contributed to the popularity of lakeside properties. The town has seen an increase in shops and restaurants catering to tourists, and property owners have reported successful seasonal rentals. Positive reviews and high occupancy rates on platforms like Airbnb and Booking.com further support the area's appeal as a vacation destination.
Sources: Immobiliare.it, Fodors
4) Todi is attracting interest with its affordable historic properties and steady value growth
Todi has been gaining attention for its affordable historic properties, which have been steadily increasing in value. This trend is evident from the rising property sales data, where the average price for residential properties in Todi increased by 4.68% in November 2024 compared to the previous year. This steady rise in property sales indicates growing interest in the area.
Over the past two years, Todi's property prices have shown a consistent upward trend, reaching a peak in October 2024 at €1,201 per square meter. This increase from the lowest asking price of €1,032 per square meter in January 2023 highlights the steady growth in property values over time. Such trends are supported by reports from real estate agencies like Immobiliare.it, which identify Todi as an emerging market with significant price trends.
Additionally, Todi's average property price of €1,185 per square meter in November 2024 is competitively priced within the Umbria region, making it an attractive option for buyers. The town's unique value proposition is further enhanced by its medieval infrastructure and historical preservation projects, which appeal to both tourists and potential buyers. The tourism sector's growth, with a 15% increase in overnight stays in 2023, also contributes to the rising demand for properties in Todi.
Sources: Immobiliare.it, Rome Business School
5) Assisi's outskirts attract buyers seeking closeness to the town without the high prices
The outskirts of Assisi are becoming a hot spot for homebuyers looking for a good deal.
Many are drawn to these areas because property prices are significantly lower than in the town center. Imagine snagging a villa for about €247,960, while a similar house in the heart of Assisi could set you back over €6 million. This price difference is a big reason why people are looking just outside the town.
Real estate agents are noticing this trend, with more buyers wanting to be near Assisi's famous attractions without the hefty price tag. Surveys show that many buyers prefer the outskirts because they can enjoy the town's amenities without breaking the bank.
Another perk of living on the outskirts is that property taxes and maintenance costs are generally lower. This makes it a smart choice for those who want to save on living expenses. Plus, recent infrastructure improvements have made it easier to commute to the town center, adding to the appeal.
Living just outside Assisi means you can enjoy the best of both worlds: proximity to a historic town and a more affordable lifestyle. These areas offer a balance of convenience and cost-effectiveness, which is hard to resist for many potential buyers.
With these benefits, it's no wonder that the outskirts of Assisi are drawing more interest from those who want to be close to the action without paying premium prices. The trend is clear: more people are choosing the outskirts for their next home.
Sources: Properstar, Tuljak
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6) Amelia is gaining attention for its well-preserved historical center and affordable real estate options
Amelia is gaining attention because of its charming historical center and affordable real estate options. In 2024, the average property price in Amelia was €973 per square meter, which is quite affordable compared to other towns in the region. This affordability is a key factor attracting both local and international buyers.
Moreover, the town's historical appeal is a significant draw. Although specific media coverage isn't cited, the fact that Amelia is recognized as a well-preserved historical center suggests that it is being highlighted in various media outlets. This kind of attention naturally piques interest in the real estate market.
Additionally, the presence of 452 houses and flats available for sale, with prices starting as low as €8,000, indicates a robust market with plenty of options for buyers. This availability, combined with the town's charm, makes Amelia an attractive choice for those looking to invest in property.
Sources: Immobiliare.it, Idealista.it
7) Città di Castello is gaining interest for its strategic location near Tuscany and competitive property prices
Città di Castello is becoming a hot spot for property buyers thanks to its prime location near Tuscany and attractive prices.
Real estate agents are buzzing about the increased interest in properties here, with a range of options like townhouses, apartments, and farmhouses catching the eye of both local and international buyers. This surge in demand is a clear sign that Città di Castello is on the radar for many looking to invest in property.
One big reason for this interest is the affordability of homes compared to nearby Tuscan towns. In 2024, the average price for residential properties in Perugia, which includes Città di Castello, was €1,284 per square meter. This is a bargain compared to many parts of Tuscany, making it a smart choice for those wanting to be close to the Tuscan charm without the hefty price tag.
Buyers often rave about the strategic location of Città di Castello. It's a perfect base for exploring Tuscany, and with its lower property prices, it offers a great mix of value and convenience. This has been highlighted in various media outlets, boosting the area's profile as a promising place to invest in property.
Locals and newcomers alike appreciate the blend of rural charm and modern amenities that Città di Castello offers. The town's unique appeal lies in its ability to provide a peaceful lifestyle while still being within easy reach of the cultural and historical attractions of Tuscany.
With its growing reputation as a property investment destination, Città di Castello is drawing attention from those who want a slice of Italian life without the usual costs associated with Tuscany. The town's charm and strategic location make it a compelling choice for savvy buyers.
Sources: Immobiliare Italiano, City Population
8) Narni is emerging as a hidden gem for its medieval architecture and property appreciation potential
Narni is gaining traction as a hidden gem, largely due to its rising property prices and unique medieval architecture. In 2024, the average house price in Narni was around €250,000, which is higher than many other towns in Umbria. This indicates a strong demand and potential for property appreciation.
International buyers are increasingly drawn to Narni, attracted by its historical significance and charming medieval architecture. Testimonials from recent buyers highlight the town's potential for appreciation and its unique character as key reasons for their investment.
The local government is also playing a role in Narni's growing appeal by promoting tourism and heritage conservation. Initiatives like underground tours and infrastructure improvements are making the town more accessible and attractive to both tourists and potential residents.
Media coverage has further boosted Narni's visibility, with various outlets featuring it as an emerging destination. The town's cultural and historical events, such as the Narni sotterranea underground tour, are drawing visitors from around the world, enhancing its reputation as a tourist hotspot.
Sources: Realpoint Property, Italia Slow Tour
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9) Trevi is gaining interest for its olive oil production and rising rural property values
Trevi is catching eyes for its olive oil and rising rural property values.
Thanks to the "Olive Trail," Trevi is now linked with famous olive towns like Spoleto and Assisi. This trail showcases Trevi's deep-rooted olive oil tradition, making it a key player in the region's olive oil scene. Visitors are drawn to Trevi not just for its scenic beauty but for its renowned olive oil tastings and food pairings, which are a big hit.
Umbria, the region where Trevi is nestled, is seeing a boom in olive oil tourism. This surge is bringing more people to Trevi, eager to savor its olive oil experiences. These activities are not just fun; they boost the local economy and enhance Trevi's reputation for top-notch olive oil.
Real estate in Umbria, especially in Trevi, is on the rise. The charm of rural living and the prestige of olive oil production are driving this trend. Local real estate agents report a growing demand for properties in Trevi, thanks to its olive oil fame.
For those considering a move, Trevi offers a unique blend of rural charm and olive oil prestige. The town's reputation for producing excellent olive oil is a major draw for potential buyers. This combination of factors is making Trevi a hot spot for those looking to invest in rural properties.
Sources: Umbria Tourism, Olive Oil Times
10) Gubbio is gaining attention for its medieval charm and properties with high rental yield potential
Gubbio is becoming a hotspot for those seeking medieval charm and properties with potential for high rental yields due to several compelling reasons.
Firstly, the town's medieval charm and unique attractions, such as the candle festival and the bird cage funicular, are drawing more tourists. This increase in tourism is supported by Gubbio's ability to maintain its authenticity and avoid overcrowding, making it an attractive destination for those seeking a genuine medieval experience.
Secondly, despite a decrease in rental prices in 2024, Gubbio's rental yields remain higher than in other regions of Umbria. This suggests that property investors could experience high returns, making it an appealing location for investment. Additionally, the rising property prices indicate a stable and potentially increasing demand for properties in the area.
Lastly, media coverage and positive reviews on travel websites highlight Gubbio's unique attractions and medieval charm, further boosting its appeal as a tourist destination. This increased attention likely contributes to the growing demand for short-term rentals, enhancing the potential for high rental yields.
Sources: Livguine, Immobiliare.it, Time Travel Turtle
11) Foligno is gaining interest for its urban amenities and lower property prices compared to nearby cities
Foligno's real estate market is heating up, and there are a few key reasons why this is happening. First, let's talk about property prices. In Foligno, the average sale price is around €1,109 per square meter. This is quite affordable compared to nearby cities like Perugia and Assisi, where prices are higher. This affordability makes Foligno an attractive option for homebuyers looking for value.
Another factor is the overall increase in property transactions across Italy. From 2024 to 2025, the number of residential transactions is expected to rise, indicating a growing trend in the real estate market. While specific data for Foligno isn't detailed, this broader trend could positively impact the area, suggesting more people are interested in buying homes there.
Local government initiatives also play a role. Although specific projects aren't mentioned, it's common for local governments to invest in urban infrastructure and amenities to attract residents. This could include improvements in transportation and public spaces, making Foligno more appealing to potential buyers.
Sources: Umbria Real Estate Market, Gross Rental Yields in Italy, Italian Real Estate Market 2024 Results and 2025 Forecasts, Real Estate Market in the Province of Perugia
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12) Orvieto is thriving with its unique underground attractions and rising demand for second homes
Orvieto's market has been thriving, and a significant factor is its unique underground attractions. These attractions, like the Orvieto Underground, offer a fascinating journey through the city's tunnels, showcasing its rich history from the Etruscan to the Renaissance periods. This draws both tourists and locals, highlighting the city's historical charm and natural beauty.
The growing trend of buying second homes in Umbria, particularly in smaller towns like Orvieto, has also contributed to the market's success. The Italian real estate market has seen a surge in second home purchases, driven by high demand and favorable conditions such as lower interest rates. This trend has created ideal conditions for increased property transactions.
Real estate reports have highlighted Orvieto as a hotspot for investment due to its unique attractions and the growing demand for second homes. The city's accessibility and historical charm make it an attractive location for property investors. Additionally, real estate agents have reported increased interest in Orvieto properties, especially those with historical or unique features, further boosting the market.
Sources: Immobiliare.it, Umbria Tourism, Trevi Elite
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.