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What will happen in Veneto’s real estate market? Will prices rise or fall? Is Venice still a prime location for foreign investors? How is Italy’s government influencing real estate policies and taxes in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaborations with notaries, real estate agents, and clients purchasing properties in Veneto, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: 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.
1) Property prices in Veneto will keep rising due to economic growth and more people moving in
In 2024, property prices in Veneto hit a new high, with an average of €2,018 per square meter, marking an 8.32% increase from the previous year.
Veneto's charm and economic strength are drawing more people in, and it's not just about the scenery. With Italy's GDP expected to grow by 0.5% in 2024 and 0.8% in 2025, the economy is on a steady climb. This growth is backed by a stronger job market and rising real wages, which means people have more money to spend, including on homes.
Veneto's population is also growing, now at nearly 4.85 million residents as of 2024. This increase, along with a high population density of 264.5 people per square kilometer, means more folks are looking for places to live, pushing property prices up.
Sources: Immobiliare.it, ISTAT, City Population
2) Rental prices in Veneto will increase as more people opt to rent instead of buy
Veneto's housing market is experiencing a noticeable shift.
Rental prices have jumped, with the average cost per square meter rising by 9.07% from November 2023 to November 2024, now at €11.54. This surge highlights a growing demand for rental properties, as more people opt for renting over buying.
For younger Italians, especially those under 35, homeownership is becoming less common. In early 2024, only 37.7% of this age group owned homes, indicating a clear preference for renting. This shift is largely due to the increasing costs of buying homes, with property prices in Veneto up by 8.32% during the same period, making it tougher for many to afford a purchase.
The scarcity of affordable homes for sale is another factor nudging people towards renting. As buying becomes less feasible, renting emerges as a more accessible choice, further boosting demand and prices in the rental market.
Veneto's rental market is poised for a rise in prices as more individuals choose renting over buying. This trend is expected to continue, driven by the combination of high property prices and limited affordable housing options.
For potential buyers, understanding these dynamics is crucial. The current landscape suggests that investing in rental properties could be a wise move, given the increasing demand and rising rental prices.
Sources: Immobiliare.it, Eye on Housing, Meridian Pacific Properties
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) Rental yields in Veneto will increase as short-term rentals gain popularity
In recent years, the rental market in Veneto has experienced a noticeable shift towards short-term rentals, and this trend is expected to continue boosting yields for property owners. As of 2024, there were 10,870 short-term rental listings in Venice, marking an 8% growth from the previous year. This increase highlights a rising demand for short-term accommodations in the region.
The global short-term rental market is also on an upward trajectory, with its size projected to grow from USD 124.6 billion in 2024 to over USD 477.9 billion by 2037. This growth is driven by the increasing number of tourists visiting Veneto, particularly Venice, which is known for its high concentration of tourist rentals.
Short-term rentals in Venice boast an average occupancy rate of 64%, with a daily rate of $230, leading to a monthly revenue of $37,968. This is significantly higher than what long-term rentals typically yield, making short-term rentals a more lucrative option for property owners.
Sources: Crenex.io, AirDNA, Enso Connect
4) Property prices in Veneto's flood-prone areas will drop moderately as climate change effects become clearer
In recent years, particularly in 2023 and 2024, Veneto has faced increasingly severe flooding events. These floods have been so intense that the region declared a state of emergency in 2024 due to 48 hours of heavy rainfall. This kind of extreme weather has caused significant damage to properties, making potential buyers wary of investing in flood-prone areas.
Scientists have linked these severe weather events to climate change, noting that warmer temperatures in the Mediterranean and Adriatic seas are contributing to more frequent and intense floods. This scientific consensus suggests that such flooding events are likely to continue, which could further impact property values negatively in these high-risk areas.
Moreover, as the frequency and severity of flooding increase, so do the costs associated with flood damage, including higher insurance premiums. These rising costs can deter potential buyers, leading to a decrease in demand for properties in flood-prone areas. As a result, property prices in these areas are expected to decline moderately.
Additionally, media coverage of the floods has highlighted the significant impact on local communities, including property damage and missing persons. This negative publicity can further influence buyer perceptions and decisions, contributing to a decline in property prices.
Sources: Euronews, Climate-Adapt, Immobiliare.it
5) Property price growth in Veneto's central business district will slow as commercial spaces turn into residential areas
In recent years, we've seen a noticeable shift in the real estate market, particularly in Veneto's central business district. The demand for commercial spaces has been decreasing, as evidenced by the global commercial real estate investment volume dropping by 47% year-over-year in Q4 2023. This trend is mirrored in Veneto, where office vacancy rates hit a record high of 19.6% in the same period.
As businesses relocate to suburban areas and remote work becomes more prevalent, the need for traditional office spaces has diminished. This has led to a growing trend of converting commercial properties into residential units. Successful case studies in Veneto highlight this shift, with old office buildings being transformed into apartments or mixed-use developments.
Additionally, the Italian government's policies, such as the Superbonus tax deduction, have incentivized property owners to convert commercial spaces into residential units. This has contributed to the rising residential property prices in areas that were once predominantly commercial, with prices peaking at €2,018 per square meter in November 2024.
Sources: Immobiliare.it, Property Guides, A Street Partners
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6) Rents in Veneto's city center will rise due to high demand and low supply
Rents in Veneto's city center are on the rise due to high demand and limited supply.
In bustling cities like Venice and Padua, population density is soaring, with more people cramming into each square kilometer. This naturally boosts the demand for housing, making it a hot market for potential buyers.
Adding to the pressure, new housing developments are scarce. In 2024, there was a 20% drop in new multifamily permits, and by 2025, completions are expected to dip another 15%. This means fewer new homes are hitting the market, especially in high-demand areas like Venice.
Existing rental properties are nearly full, with occupancy rates hovering around 93% and expected to climb to 94% by the end of 2025. This tight market leaves little room for newcomers, pushing rents even higher.
For those eyeing a property in Veneto, it's crucial to understand that the limited supply of new homes is a significant factor driving up prices. With fewer options available, competition among renters is fierce.
In this environment, investing in property could be a smart move, as the demand shows no signs of slowing down. The combination of high occupancy rates and limited new construction suggests a strong rental market for the foreseeable future.
Sources: Credaily, My Dolce Casa, Top 10 Cities
7) More foreign investors will be drawn to Veneto’s real estate market because of favorable exchange rates
In recent years, Veneto's real estate market has become increasingly attractive to foreign investors, largely due to favorable exchange rates. The stability of the Euro against major currencies like the USD and INR has played a significant role in this trend. For instance, the EUR to INR forecast for 2025 shows minimal fluctuation, with rates expected to remain stable, making investments in Veneto more appealing to Indian investors.
Moreover, the Italian real estate market, particularly in Veneto, has experienced a notable increase in foreign property purchases. In the first half of 2024, investments in Italian real estate reached €3.1 billion, marking a 40% increase compared to the same period in 2023. This growth is driven by renewed interest in sectors like retail and hospitality, which are prominent in Veneto.
Additionally, real estate agencies have reported a growing interest from international buyers, with significant deals concluded in major cities like Milan and Rome. This trend is expected to continue, positioning Veneto as an attractive destination for foreign investors. The competitive pricing of properties in Veneto compared to other European regions further enhances its appeal.
Sources: PwC Italy | Real Estate Market Overview, EUR to INR Forecast for 2025-2026, EUR to USD Historical Exchange Rates
8) Foreign investment in Veneto's rural properties will drop as urban areas promise better returns
In recent years, we've seen a noticeable shift in investment trends in Veneto, particularly when it comes to rural versus urban properties. One of the key reasons for this shift is the increasing property prices and rental yields in urban areas. For example, in Padova, the rental yields are quite attractive, with a gross rental yield of 6.25% outside the city center and 4.85% in the city center. This makes urban properties more appealing to investors looking for better returns.
Additionally, the demand for urban properties has been on the rise, both from local and international buyers. The Italian investment market has seen a significant increase in transactions, especially in urban areas like Rome, which has captured a larger market share. This trend is further supported by media reports highlighting economic growth and development in urban centers, which naturally attract more foreign investment.
Moreover, real estate market analyses predict higher appreciation rates in cities, making them a more lucrative option for investors. The Italian investment market has shown positive trends, with a substantial recovery and a high number of deals recorded. These factors combined suggest that urban areas offer better returns compared to rural properties, leading to a decline in foreign investment in rural areas.
Sources: Numbeo, Savills, Global Property Guide
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Investment in energy-efficient homes in Veneto will rise due to new tax incentives
In Veneto, new tax incentives are making energy-efficient homes more appealing.
These incentives include enhanced tax credits like the Section 45L, which offers up to $5,000 for homes that meet specific energy certifications. This financial boost is a game-changer for both homeowners and builders, making it easier to invest in properties that are kinder to the environment.
Across Italy, energy-efficient homes are seeing a rise in prices, and Veneto is expected to follow this trend. Homes with better energy ratings often fetch higher prices, turning them into a smart investment. This potential for economic gain is pushing more people to consider making their homes more energy-efficient.
There's also a noticeable shift in consumer preferences, with more real estate listings highlighting eco-friendly features. People are increasingly drawn to sustainable living, which is further fueling the demand for energy-efficient homes. This trend is not just about saving money; it's about making a positive impact on the planet.
In Veneto, the buzz around eco-friendly building materials is growing, reflecting a broader change in what buyers are looking for. Investing in energy-efficient upgrades is becoming a priority for many, driven by both environmental concerns and the potential for financial returns.
With these incentives and market trends, Veneto is poised to become a hotspot for energy-efficient real estate. The combination of financial benefits and a shift in consumer mindset is setting the stage for a greener future in the region.
Sources: Building Innovation Hub, IUAV, Journal of Accountancy
10) Flood prevention in Veneto will boost buyer interest in previously risky areas
New flood prevention measures in Veneto, like the MOSE project, have made previously risky areas more attractive to buyers.
Since the MOSE floodgates started working in 2020, the number of house listings mentioning flood risk dropped from 16% to just over 10% by the end of that year. This change is a big deal because it can lead to higher property values. In places like Rotterdam, similar flood defenses have already shown how they can boost property values and open up new economic opportunities.
With these new defenses, properties often see reduced insurance premiums, making them even more appealing. The MOSE project has been a game-changer, cutting down the frequency and severity of floods. Since December 2020, Venice hasn't seen tides over 110 cm, thanks to these barriers.
This increased safety is a magnet for buyers looking at areas that were once considered risky. Economic experts predict that these flood prevention measures can increase property values, reduce business disruptions, and attract new investments. The MOSE project alone is expected to bring in valuation gains of around €340 million annually.
In Veneto, the new flood defenses are not just about safety; they're about transforming the real estate market. Buyers are now eyeing areas they might have previously avoided, knowing that the risk of flooding has significantly decreased.
These changes are not just theoretical. They're happening now, and they're reshaping how people think about buying property in flood-prone areas. The MOSE project is a prime example of how infrastructure can change the game for real estate.
Sources: Banca d'Italia, World Bank Blogs, Royal Museums Greenwich
11) Foreign buyers will seek eco-friendly properties in Veneto as sustainability gains global importance
In recent years, we've seen a significant rise in the demand for sustainable housing across Europe. This trend has been driven by a growing interest from both institutional investors and cross-border capital, who are increasingly seeking out properties that comply with environmental, social, and governance (ESG) standards. This shift in demand is a clear indication that sustainability is becoming a priority for property buyers.
In Veneto, there has been a noticeable increase in eco-friendly property developments. The regional program for 2021-2027 has focused on reducing energy consumption and increasing the use of renewable energy sources. This initiative is part of a broader effort to support innovative start-ups and small to medium-sized enterprises (SMEs) in the region, which further emphasizes the commitment to sustainable development.
Moreover, government incentives are playing a crucial role in promoting green building practices. The European Commission’s Energy Performance of Buildings Directive (EPBD) has set ambitious targets for improving the energy performance of the EU’s housing stock. By 2030, all residential properties must achieve a minimum energy performance certificate (EPC) rating of class E, with further improvements required by 2033. This regulatory framework is pushing the real estate industry to adopt more sustainable practices.
Sources: European Commission, Deepki, Coolset Academy
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12) Housing demand in Veneto will change as younger families move to cities
Veneto is seeing a shift as younger families flock to urban areas.
In places like Venice Metropolitan City, urban populations are steadily rising, while rural areas are experiencing a slight dip. This trend shows a clear preference for city life among younger families, who are drawn to the vibrant opportunities and amenities that urban centers offer.
Looking at the age distribution, a significant chunk of Veneto's population is between 18 and 64 years old. This group includes many young families, eager for the conveniences of city living. Cities like Venice and Verona are feeling the impact, with school enrollments on the rise as more families settle in.
The demand for family-friendly housing in these urban areas is booming. Spacious apartments are particularly sought after, catering to the needs of larger families. This surge is fueled by the influx of young families who need suitable living spaces.
To keep up with this growing population, urban infrastructure is expanding. New parks and schools are popping up, enhancing the appeal of city life and making it more attractive for families.
Sources: OECD, Italia Kids, Morse Moving, City Population
13) Veneto’s property prices will grow steadily as government policies promote affordable housing
The real estate market in Veneto is set for stable price growth due to government policies supporting housing affordability.
In 2023 and 2024, property transactions in Veneto increased, even as the rest of Italy saw a decline. This shows a strong market foundation here. The government is actively working to increase the housing supply, which helps balance demand and stabilize prices. These efforts are making housing more affordable and accessible, ensuring a steady market environment.
First-time homebuyers are getting a boost from subsidies and tax incentives, making it easier for them to enter the market. This is part of a broader strategy to support affordability. The government's commitment to promoting sustainable and affordable housing developments is also crucial. By encouraging the construction of affordable housing units, they are making housing more accessible to a broader population.
These initiatives are not just about numbers; they are about creating a stable real estate market in Veneto. The focus on sustainability and affordability is key. The government is working to ensure that housing remains within reach for more people, contributing to a stable market.
Veneto's real estate market is benefiting from these policies, which are designed to support both buyers and the overall market. The region is seeing growth where others are not, thanks to these targeted efforts. This makes Veneto an attractive option for potential property buyers.
Sources: Immobiliare.it, Unimovers, Idealista
14) Property values in Veneto's suburbs will drop as urban centers attract more young professionals
In recent years, we've seen a noticeable trend of young professionals moving to urban centers in Veneto, such as Venezia and Milano. These cities offer more economic opportunities and a vibrant lifestyle, which are highly attractive to younger demographics. This migration pattern has been evident since 2023 and 2024, with urban areas experiencing a significant influx of this age group.
Urban centers in Veneto have been investing heavily in infrastructure and public transportation, making them more livable and appealing. The development of efficient public transportation systems in cities like Venezia and Milano has improved the quality of life for residents, drawing even more young professionals to these areas. This has led to a surge in demand for urban housing, with prices increasing by 12% due to the high demand.
Conversely, suburban areas in Veneto, such as the provinces of Belluno and Rovigo, have shown lower population growth rates and negative net migration rates. This indicates a decline in population growth or stagnation, as fewer young professionals are choosing to live in these areas. The real estate market in these suburban regions is experiencing a shift, with longer times on the market for suburban homes and a decline in property sales.
Sources: ISTAT, Rentastic, TenantCloud
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) Rural rental yields in Veneto will grow as remote work becomes more popular
The shift to remote work is boosting demand for rural properties as people look for more flexible and natural living spaces.
In Italy, this trend is clear with over seven million Italians working remotely as of April 2021. Many of these workers are choosing to live in less crowded, more natural settings, which is driving them to rural areas like Veneto. As city property prices climb, rural areas offer a more affordable alternative, making them increasingly attractive.
Digital nomad communities are popping up in these rural spots, further fueling the demand for rentals. These communities need good internet, and investments in rural infrastructure are making that possible. In Veneto, rental occupancy rates are climbing, showing that the area is becoming a hot spot for remote workers.
With more people moving to rural areas, rental yields in places like Veneto are likely to rise. The combination of increased demand and improved infrastructure is making these areas more appealing. As remote work continues to grow, this trend is expected to strengthen.
Surveys and stories from remote workers highlight their preference for rural living, which is a big factor in this migration. The appeal of a quieter, more natural environment is hard to resist for many. This shift is not just a passing phase; it's a significant change in how people choose to live and work.
As more people embrace remote work, the demand for rural rentals will likely keep increasing. This means that investing in rural properties could be a smart move for those looking to capitalize on this trend. The potential for higher rental yields makes rural areas an attractive option for property investors.
Sources: HousingWire, Statista, TradingView
16) Property prices in rural Veneto will rise as remote work becomes more common
In recent years, we've seen a noticeable shift in the real estate market in Veneto, particularly in rural areas. This change is largely driven by the increasing number of remote workers who are looking for more affordable and sustainable living options. As a result, there's been a growing demand for rural properties, especially in areas with better internet infrastructure.
By 2025, it's expected that the number of remote workers in Italy could reach 3.65 million. This trend is supported by the fact that almost all major Italian companies have already embraced remote working initiatives. This shift in work culture has led many people to prefer living in rural areas, where they can find more desirable accommodations and a better quality of life.
Moreover, the Veneto Region has been actively investing in digital infrastructure to enhance connectivity in rural areas. This includes extending high-speed broadband, making these areas even more attractive to remote workers. Additionally, real estate market reports have shown that rural properties in Veneto are more affordable compared to urban areas, further driving demand.
Sources: Immobiliare.it, Newsendip, Statistica Regione Veneto
17) Rental yields in Veneto's cities will rise as more people choose urban living
Veneto's urban areas are buzzing with life, drawing more people to cities like Venice and Verona.
In Venice, the Airbnb scene is thriving with 7,664 active listings as of September 2024, showing a clear demand for short-term rentals. This trend highlights a growing interest in city living, where the charm of canals and historic architecture meets modern convenience.
Occupancy rates tell a similar story. Venice boasts a 76% median occupancy rate for short-term rentals, while Verona isn't far behind at 67%. These numbers reveal that people are flocking to these cities, eager to soak up the vibrant culture and opportunities they offer.
Economic growth is a big draw, too. The tourism boom in Venice and Verona is fueling demand for rentals, making these cities even more attractive. This bustling activity not only boosts the local economy but also enhances the appeal for potential renters.
As property prices climb, so do rental yields. In Verona, for example, the average annual gross rental yield for a three-bedroom property is expected to hit 7.55% in 2024, up from 7.39% in 2023. This upward trend suggests that investing in these urban areas could be quite lucrative.
With the allure of city life and promising financial returns, urban rental yields in Veneto are set to rise as more people choose city living.
Sources: Airbtics Verona, Airbtics Venice, The Luxury Playbook
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.