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What will happen in Venice’s real estate market? Will prices go up or down? Is Venice still a hotspot for foreign investors? How is Italy’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, property managers, and clients who buy properties in Venice, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
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) Venice rents will keep rising because it's a popular tourist spot
In 2023, Venice saw a remarkable surge in tourism, with nearly 5.7 million visitors flocking to the city, including a substantial number of international tourists.
This influx of visitors has led to a boom in short-term rental options, with 7,664 active Airbnb listings by September 2024. The median occupancy rate hit 76%, showing just how popular these rentals have become. As more properties cater to tourists, long-term housing options dwindle, pushing rents higher.
Venice's unique charm comes with its own set of challenges. The city's compact size and historic architecture mean there's limited space for new housing. This scarcity, coupled with the constant stream of tourists, is a recipe for rising rental prices.
In fact, the average price for residential rentals in Venice saw a 12.03% increase in November 2024 compared to December 2023. Renters are now paying around €14.43 per month per square meter, a clear sign of the city's growing demand.
For those considering buying property in Venice, it's essential to understand these dynamics. The city's allure as a tourist hotspot is undeniable, and this popularity is a key driver of the rental market.
With the ongoing trend of rising tourist numbers and limited housing supply, it's likely that rents will continue to climb, making Venice a challenging yet potentially rewarding market for property investment.
Sources: Statista, Airbtics, Immobiliare.it
2) Venice’s luxury rental prices will rise as wealthy tourists look for high-end stays
Luxury rental rates in Venice are on the rise as wealthy tourists flock to the city for premium stays.
Venice is seeing a surge in demand for high-end accommodations, with occupancy rates in luxury hotels bouncing back to pre-pandemic levels. This means more people are choosing to stay in upscale places, pushing up prices. The Average Daily Rates (ADRs) and Revenue Per Available Room (RevPAR) have jumped by over 40% since 2019, showing just how hot the market is for luxury stays.
The global luxury travel scene is booming, with the market size hitting USD 1.38 trillion in 2023. It's expected to keep growing at 7.9% annually from 2024 to 2030. This boom is fueled by elite travelers who crave unique experiences and are willing to pay for them. Venice, with its charm and exclusivity, is a top pick for these affluent tourists, which means more demand for luxury rentals.
In 2023, Venice experienced a notable uptick in bednights for extra-hotel accommodations like vacation homes, with a 9.5% increase compared to 2019. This trend highlights the growing interest in luxury rentals. The scarcity of high-end rental properties in prime Venetian locations is also a factor, as limited supply naturally drives up prices.
For those considering buying property in Venice, it's worth noting that the city's allure is not just about its canals and history. The demand for luxury accommodations is a clear indicator of its status as a premium destination. As more affluent tourists visit, the competition for top-tier rentals will only intensify.
Sources: Grand View Research, HTrends
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.
3) Property prices in Venice will keep rising due to low supply and high demand
Venice's property prices are on the rise, and this trend is expected to continue due to limited supply and high demand.
In 2024, the average price for residential properties in Venice jumped by 5.41% from the previous year, reaching €3,255 per square meter. This steady climb in prices highlights a persistent upward trend in property values. One big reason for this is the limited availability of new land for development. Venice's unique geographical constraints make it tough to expand or build new properties, naturally limiting the supply of available housing.
Venice's status as a UNESCO World Heritage site and its rich cultural and historical significance attract international buyers, especially high-net-worth individuals. These buyers are often less sensitive to economic fluctuations and continue to invest in prime properties, further driving up demand and prices. Tourism also plays a significant role in the high demand for properties, especially short-term rentals. The influx of tourists supports local businesses and increases the demand for rental properties, which in turn boosts property values, particularly in central and popular areas.
Moreover, government restrictions on new construction to preserve Venice's architectural heritage mean that new developments are rare. This policy further limits the supply of properties, contributing to the upward pressure on prices. The luxury property market in Venice remains robust, with wealthy individuals investing in exclusive properties as a status symbol. This trend supports overall price growth and ensures that Venice remains an attractive destination for both domestic and international investors.
Venice's unique charm and limited space make it a hot spot for property investment. The scarcity of new developments, combined with the city's allure, keeps demand high. As a result, property prices continue to rise, making Venice a prime location for those looking to invest in real estate.
Sources: Immobiliare.it, Bankrate, Statista
4) Mid-range property prices in Venice will rise moderately as local demand evens out
In Venice, property prices have been steadily rising over the past few years.
By November 2024, the average price for residential properties hit €3,255 per square meter, showing a 5.41% increase from December 2023. This isn't just a recent trend; since 2017, prices have been on the up, driven by a strong demand for housing. Locals are keen to stay, and initiatives like Assembly for the House (ASC) are working hard to keep it that way by providing housing and preventing evictions.
ASC's efforts to repair and fill vacant properties are crucial. By reducing the number of empty homes, they're helping to stabilize the housing market and keep demand steady. This is important because a stable population means a more predictable housing market, which is good news for potential buyers.
Venice's economy is also on the mend. According to the PwC Real Estate Market Overview for 2024, consumer purchasing power is bouncing back and inflation is leveling off. This economic stability is a positive sign for property prices, suggesting they might continue to rise, albeit moderately.
Tourism is another big player here. With over 20 million visitors each year, Venice's tourism industry is booming, which in turn boosts the local economy and housing demand. This influx of visitors can lead to moderate price increases for mid-range properties, as more people look to invest in the area.
Sources: Immobiliare.it, Statista, The Borgen Project, PwC
5) Venice’s short-term rental rates will rise sharply as tourism picks up
In 2023, Venice saw a remarkable surge in tourism, with 5.7 million visitors flocking to the city.
This influx has led to a booming demand for places to stay, especially short-term rentals. By mid-April 2023, the number of available accommodations in Venice's city center had risen to 48,596, which is quite impressive considering the city's population is just over 49,000. This means that nearly every resident could theoretically host a tourist!
As a result, property values in Venice have been climbing. In areas like Giudecca, known for its charm and popularity, the average rent was about 20.76 euros per square meter in October 2024. This makes it one of the priciest spots in Italy, reflecting the high demand for short-term stays.
Looking back at 2022, international travel to Italy made a strong comeback, with over 89 million people booking accommodations, marking a 46% jump from the previous year. This trend hints that Venice will continue to attract more tourists, further boosting the need for short-term rentals.
For those considering buying property in Venice, this means potential for lucrative rental income. The city's unique charm and the steady stream of tourists make it a hot spot for investment. With tourism rebounding, short-term rental rates are expected to rise significantly, offering promising returns.
Investing in Venice not only offers financial benefits but also the chance to own a piece of a city rich in history and culture. As tourism continues to thrive, the demand for short-term rentals will likely keep growing, making it an exciting time to consider property investment here.
Sources: Statista, Euronews, Statista
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6) More North American buyers will invest in Venice’s real estate market as they look for European opportunities
North American buyers are increasingly eyeing European real estate, with American investments in Europe jumping by 37% in 2023.
One big reason for this surge is the favorable exchange rate between the US Dollar and the Euro, making European homes more affordable. This financial edge is drawing more buyers to cities like Venice, which is famous for its rich culture and history.
As the global real estate market is set to grow, with projections hitting $952 billion by 2025, North American investors are looking to diversify. Venice, with its unique lifestyle and charm, is becoming a top choice for these high-net-worth individuals.
Real estate agencies in North America are expanding their portfolios to include European properties, showing a clear effort to meet this rising demand. Improved flight options and connectivity between North America and Europe are also making it easier for buyers to visit and invest in Venice.
Venice's allure isn't just about its beauty; it's about the lifestyle it offers. The city's canals, architecture, and vibrant culture are irresistible to those looking for a unique investment opportunity.
With these factors in play, it's no wonder that North American buyers are becoming a more prominent force in Venice's real estate market.
Sources: Savills, August Collections, Statista
7) Rental yields in Venice will be affected as new rules limit short-term rentals
Venice is facing a housing crunch as half of its flats are now short-term tourist rentals.
Locals are struggling to find affordable homes because many landlords prefer converting their properties into tourist accommodations. This shift has made it tough for residents to stay in the city, leading to a noticeable decline in the local population.
Mayor Luigi Brugnaro is stepping in with plans to impose strict controls on these rentals. He believes that the current trend is causing a "depopulation" of the city center, as Venice's living costs soar and residential areas turn into tourist hubs.
Tourism is a double-edged sword for Venice. While it boosts the economy, it also diminishes the quality of life for locals. The city's historical center, once bustling with 174,800 people in 1951, has seen its population shrink to just 50,000 by 2023.
These changes underscore the urgent need for new regulations. The local government is keen to address the issue, aiming to balance tourism with the needs of its residents. New rules are expected to limit short-term rentals, which could impact rental yields for property owners.
For those considering buying property in Venice, it's crucial to stay informed about these upcoming regulations. They could significantly affect the rental market and property values. Understanding these dynamics is key to making a sound investment.
Sources: History Walks Venice, Short Term Rentalz, Campaign for a Living Venice, Statista
8) More foreign buyers will invest in Venice’s real estate because of its worldwide attraction
In 2024, over 25% of homes sold in Venice were snapped up for short-term rentals, showing its strong pull for tourists and foreign investors.
Venice's allure is undeniable, with nearly five million international tourists visiting in 2023. This surge in visitors boosts the demand for short-term rentals and luxury homes, making Venice a hot spot for foreign buyers.
The city's rich history and culture draw people from around the globe, creating a unique charm that fuels the desire for luxury and distinctive real estate. Many international buyers are on the lookout for second homes or investment properties in such vibrant settings.
By 2025, it's predicted that foreigners could make up 60% of property purchases in Venice. This growing interest highlights the city's appeal as a prime real estate market for international investors.
Venice's global appeal is further emphasized by the total tourist arrivals peaking at about 5.7 million in 2023. This influx not only supports the local economy but also attracts more foreign buyers looking to invest in the city's thriving real estate market.
With its unique blend of history, culture, and tourism, Venice continues to be a magnet for those seeking exceptional real estate opportunities. The city's charm and potential for investment make it a top choice for international buyers.
Sources: Statista, PropertyPistol, Idealista
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.
9) Asian investors will invest more in Venice real estate to diversify their portfolios
Asian investors are increasingly eyeing Venice properties as they seek to diversify their portfolios.
Back in 2023, there was a significant uptick in Asian investments in European real estate, with a 26% surge in cross-border capital investment. This shows a growing interest in European properties among Asian investors, who are keen on exploring new opportunities.
Ultra High Net Worth Individuals (UHNWIs) in Asia are seeing their wealth grow, and many are planning to invest in real estate. They're looking for investments that offer capital growth, preservation, and income generation. Venice, with its luxurious and historic properties, aligns perfectly with these investment goals.
Asian investors have already been exploring Italian cities like Rome and Milan, and it's likely that their interest will extend to Venice. The favorable exchange rates for Asian currencies against the Euro make European real estate even more appealing, potentially boosting interest in Venice properties.
Venice offers a unique blend of culture and history, making it an attractive option for those looking to invest in properties with character. The city's rich heritage and luxury appeal are key factors that draw investors seeking to diversify their portfolios.
As Asian investors continue to diversify, Venice stands out as a prime location for real estate investment, offering both cultural allure and financial potential.
Sources: Asia Real Estate Summit, Hospitality Investor, Statista
10) More young people will move to Venice as remote work becomes more common
Remote work is booming in Italy, and it's changing where people want to live.
Venice is catching the eye of younger remote workers. The city has boosted its digital infrastructure, with broadband speeds jumping by 81% in the last five years. Thanks to providers like FIBERING, staying connected is a breeze.
Venice isn't just about fast internet; it's a cultural gem. Young professionals love places with rich experiences, and Venice offers just that. Plus, living costs have become more manageable, with property prices stabilizing, making it a more affordable choice.
Programs like Venywhere are rolling out the welcome mat for remote workers, helping them settle in. The Italian government is also keen on bringing young folks back to Venice's historic center. Co-working spaces and remote-friendly cafes are popping up, adding to the city's appeal.
These efforts are making Venice a hotspot for younger remote workers. The city's unique charm, combined with modern conveniences, is hard to resist. Venice is becoming a top choice for those who can work from anywhere.
Sources: Adecco Group, Newsendip, Fair Internet Report, Statista
11) Venice’s rental yields will rise as tourist demand for short-term rentals stays strong
Venice's rental yields are set to rise as tourists continue to flock to the city, boosting demand for short-term rentals.
In 2023, Venice welcomed around 5.7 million visitors, a clear sign of its enduring appeal. This influx of tourists is a major driver for short-term rental demand, as many travelers prefer the flexibility and charm of these accommodations over traditional hotels.
The Airbnb scene in Venice is thriving, with 8,025 listings available as of August 2018. This represents a significant 55.34% increase from just two years prior, highlighting the growing popularity of short-term rentals among visitors.
Tourists today are on the hunt for unique and authentic experiences, and staying in local neighborhoods offers just that. This trend is pushing up demand for short-term rentals, as visitors seek to immerse themselves in the local culture and lifestyle.
Venice's neighborhoods offer a taste of authentic Italian life, which is a big draw for tourists. This preference for local experiences is not just a passing trend; it's a key factor in the rising rental yields.
With the continued strong demand from tourists, rental yields in Venice are expected to keep climbing, making it an attractive prospect for property investors.
Sources: Statista, Campaign for a Living Venice
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12) Mid-range property yields in Venice will stay steady due to ongoing demand from local renters
In Venice, mid-range property yields are expected to stay stable as demand from local renters continues.
Venice's rental market is thriving, thanks to tourism and short-term rentals that keep investors interested. This trend is likely to persist, ensuring that mid-range property yields remain steady.
Even with environmental challenges, the city's luxury property market is holding strong, which points to economic stability. This stability, along with government efforts to improve infrastructure, supports both the rental market and property values.
Venice's charm is attracting remote workers and digital nomads, who are drawn to its unique lifestyle. This growing interest is expected to increase demand for residential properties, contributing to stable mid-range property yields.
Low vacancy rates in the city further suggest that property yields will not fluctuate significantly. This is good news for potential buyers looking for reliable investment opportunities.
With these factors in play, Venice remains a promising location for property investment, especially in the mid-range market. Local renters continue to drive demand, ensuring a steady rental income for property owners.
Sources: HVS, Statista, Global Property Guide
13) Long-term rental yields in Venice will drop slightly as more homes become short-term rentals
Venice's rental market is shifting as more properties are turning into short-term rentals.
By 2024, the city had 7,664 active listings on platforms like Airbnb, showing a clear preference among property owners for short-term over long-term leases. This trend is largely driven by the higher profitability of short-term rentals. For example, the average daily rate for these rentals in Venice is €146, with a median occupancy rate of 76%, making them a lucrative choice.
Local government policies also nudge this shift. The Cedolare Secca tax regime, which taxes short-term rental income at a flat rate of 21%, doesn't allow for expense deductions. This makes short-term rentals more financially appealing compared to long-term options, encouraging more property owners to make the switch.
As a result, the availability of long-term rental properties is decreasing. This shift is impacting the rental yields for long-term leases, which are expected to see a slight decline. The conversion of properties to short-term rentals is reshaping the market landscape, making it more challenging for those seeking long-term housing options.
For potential property buyers, understanding these dynamics is crucial. The trend towards short-term rentals is not just a passing phase but a significant change in the market. This shift could influence your decision if you're considering investing in Venice's real estate.
Keep in mind that while short-term rentals offer higher returns, they also come with their own set of challenges, such as fluctuating demand and regulatory changes. It's essential to weigh these factors carefully when deciding on your investment strategy in Venice.
Sources: Airbtics, Campaign for a Living Venice, BNB Calc
14) Entry-level property prices in Venice will drop slightly as younger buyers look for cheaper options elsewhere
Younger buyers are increasingly looking for affordable homes outside Venice.
In Venice, property prices in areas like San Marco and Rialto can soar to nearly 5,910 euros per square meter, making it tough for young buyers. Meanwhile, just a short distance away in Mestre, prices drop significantly to around 1,830 euros per square meter, offering a more budget-friendly option.
The rise of remote work is a game-changer, giving people the freedom to live further from their jobs. This flexibility means that young buyers can choose homes outside Venice without the hassle of long commutes. Plus, the allure of 1 euro homes in rural European towns is hard to resist for those eager to renovate and enjoy a cheaper lifestyle.
Venice's unique architecture and environmental challenges make property maintenance costly, which can be a big financial strain. The city's high living costs and frequent flooding issues add to the appeal of more affordable areas nearby. For many, these factors make the idea of living outside Venice much more attractive.
Sources: Statista, Dispatches Europe, Business Insider
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.