Market Overview - Italian Real Estate Market Trends 2024-2025
The Italian property market is very active at the moment, with higher levels of activity than last year, especially driven by overseas buyers. In fact, the number of homes sold to international clients doubled in the first half of 2025 compared to the same period of 2024 . Foreign buyers made up about 19.6% of all transactions in early 2025 (up from 11.3% the year prior) – a clear sign that demand from abroad is surging . This uptick reflects Italy’s broad appeal: quality of life, rich culture, and attractive tax incentives for newcomers are drawing buyers from across Europe, the US, and beyond . We’re also seeing foreign interest expand beyond the luxury segment into mid-market properties . In other words, it’s not just $5M Tuscan villas – many buyers are seeking moderately priced homes for relocation or retirement in Italy’s cities and countryside. The market is busier than last year, and quite diverse in terms of what international clients are looking for. Some want historic city apartments (Rome, Milan, etc.), others dream of rustic farmhouses or coastal retreats; overall the demand spans a range of locations and property types rather than one single niche. The common thread is that Italy remains highly sought-after, and 2025 has continued the positive trend with no signs of slowing down in foreign interest .
High-Price Regions vs. Affordable Alternatives
Positano on the Amalfi Coast – an example of an exclusive Italian location with premium property prices. Italy’s real estate prices vary hugely by region, with certain famed areas commanding top dollar. The classic “golden” locations – Tuscany’s hill country, the Italian Riviera in Liguria, the Amalfi Coast, and the northern Lakes (Como, Maggiore, Garda, etc.) – all come with very high price tags due to their beauty and international renown. In hotspots like central Florence or Amalfi, it’s not unusual to see prices exceeding €10,000 per square meter for prime properties . For instance, seafront homes in Positano or Amalfi can reach €10,000–€11,000/m², driven by scarce supply and huge tourist demand . Likewise, parts of Tuscany (e.g. Chianti or around Siena) and Lake Como host many luxury estates with multi-million Euro values. These areas attract wealthy buyers, but they’re far from the whole story of Italy’s market.
Fortunately, buyers on more modest budgets have plenty of other regions to consider. Beyond the famous (and pricey) spots, Italy offers many more affordable areas that still deliver gorgeous scenery, culture, and lifestyle. For example, Umbria – often called Tuscany’s “green heart” and next-door neighbor – offers similar rolling hills and stone villages at lower prices (averaging around €1,166/m², significantly cheaper than Tuscany) . Regions like Le Marche on the Adriatic, or Abruzzo and Molise, combine mountains, sea and countryside with far lower real estate costs than the tourist magnets. As of mid-2025, Marche’s average house price is about €1,600/m² , and even its coastal towns remain relatively good value. Abruzzo’s seaside towns, for instance, have properties from ~€1,400–€3,000/m² – a bargain compared to Liguria or Amalfi. Puglia in the south is another great example: it offers sunny climate, baroque towns and beaches at affordable prices (around €1,100–€1,500/m² in many areas, with hotspots like Polignano a Mare still only ~€3,500/m² at the high end ). Even within Tuscany, if you venture to less discovered provinces (like Lunigiana in the north, or parts of southern Tuscany), prices drop substantially versus Chianti. Umbria, Abruzzo, Le Marche, parts of Piedmont and Sicily are all regions savvy buyers are exploring for better value.
The historic town of Trapani, Sicily – one of the most affordable city markets in Italy. Data shows some of the cheapest property locations are in southern and inland areas. For example, several cities in Sicily and Calabria top the list of lowest average prices: places like Caltanissetta and Ragusa (Sicily) or Reggio Calabria offer homes for well under €800 per square meter on average . Mid-sized northern cities off the tourist trail can be inexpensive too (Biella and Alessandria in Piedmont, for instance, average ~€740–€1,000/m² ). What this means is that buyers shouldn’t assume Italy is all super-expensive – beyond the famous districts there is tremendous value to be found. A budget that might only buy a small flat in London or a modest home in the UK could secure a countryside villa or a spacious apartment in many parts of Italy. So if Tuscany or Lake Como stretch the finances too far, regions like Umbria, Le Marche, Abruzzo, Sicily, or Puglia can be ideal alternatives that still offer the “dolce vita” lifestyle. The key is to research upcoming areas – for instance, Le Marche’s coastal and hill towns have seen price rises but remain affordable – and work with an agent who knows which locales give you more bang for your buck.
Rural Italy’s Value (vs the UK) and the €1 House Schemes
When it comes to rural, off-the-beaten-track Italy, the value for money can be remarkable – especially from the perspective of UK buyers. In general, Italy’s property prices are lower than the UK’s, and in many rural areas they’re a fraction of what one would pay for an equivalent home in Britain. To put it in perspective, the average price of a home in Italy in 2024 was around €1,857 per square meter , which is considerably less than in the UK (London averages are far higher, and even UK national averages per m² are above Italy’s). In fact, even prime city property in Italy is cheaper: Milan’s prices are about 15% less on average than London’s . And Italy’s nationwide price growth has been very modest over the past decade , meaning there hasn’t been the kind of explosive increase that the UK saw – good news for buyers seeking value.
For rural and small-town homes, Italy can seem like a bargain paradise. There are picturesque villages where habitable houses sell for the price of a car. It’s not uncommon to find country homes in regions like Abruzzo, Basilicata or Calabria for under €50,000. By contrast, rural property in much of the UK (especially England) is quite costly. So yes – from a cost standpoint, “undiscovered” parts of Italy still offer tremendous value for money. We’ve all heard the enticing stories of Italian towns practically giving away houses for €1 to attract foreign buyers. Those schemes do exist (over 50 municipalities have run such programs by 2025) and have drawn huge publicity . The idea is that in certain depopulated villages – often in Sicily, Sardinia, Calabria, etc. – the local council sells abandoned old houses for a symbolic €1 provided the buyer commits to renovate within a certain timeframe . The goal is to breathe new life into dying communities by bringing in people who will fix up the homes and spend time there .
A typical Italian village that has launched “€1 house” initiatives – buyers pay a token €1 but must invest in renovations (example coin for symbolism). These “€1 home” schemes have indeed made headlines and remain popular going into 2025 . From Sicily to Tuscany to Puglia, many small villages have offered such deals – for example, Sambuca in Sicily, Ollolai in Sardinia, or Fabbriche di Vergemoli in Tuscany . Buyers from abroad (including expats with Italian heritage looking to reconnect) have jumped on these opportunities . It’s important to note, though, that €1 homes are not exactly “free” – you must invest in bringing the property up to code, which can cost tens - if not hundreds - of thousands of euros. They’re best for adventurous buyers who want a project and a slice of authentic village life, rather than someone seeking a move-in-ready home. Nonetheless, the existence of such schemes underscores how inexpensive rural Italian real estate can be compared to the UK. Even outside the €1 promotions, you can routinely find habitable village houses under €40,000 or €50,000 – prices almost unheard of in Britain. For someone selling a property in the UK, the proceeds could potentially fund multiple properties in rural Italy. Of course, buyers should go in with eyes open: these off-track locales may have limited job prospects, require learning Italian, and involve renovating older structures. But if lifestyle (more than retirement) is the goal, rural Italy offers an affordability and charm that make it very attractive. In summary, yes – rural Italy is still regarded as excellent value for money relative to the UK, and creative initiatives like the €1 house schemes highlight just how far your budget can stretch in certain areas of Italy .
Defining Requirements: The Importance of Location vs. Property
One of the first things I impress upon new clients is the paramount importance of choosing the right location. In fact, I’d say pinpointing the area or type of area you want should come before falling in love with a specific property. Often, overseas buyers are tempted by a gorgeous home they see online – but if it’s in an area that doesn’t fit their lifestyle or needs, that can lead to regret. So a big part of our early conversations is helping clients identify the region or location that’s right for them. We discuss climate preferences (north vs south Italy differs a lot), urban vs rural settings, proximity to airports (for those who will travel frequently), and access to amenities. For example, a remote farmhouse looks idyllic, but I’ll ask: Are you comfortable being 30 minutes from the nearest supermarket or hospital? If not, perhaps a town outskirts or village location would be more suitable. Narrowing down the location is crucial because Italy is incredibly diverse – life in a Sicilian seaside town is very different from life in a Tuscan hill village or a Milan city apartment. I often advise clients to make an exploratory trip to a few different regions if they’re unsure. Spend a day or two in each short-listed area before seriously house-hunting, just to get a gut feeling. Once we have a target location, then we can zero in on finding the best property there.
Sometimes clients come with a dream that needs a bit of grounding – for example, wanting “a villa in Tuscany with a pool and olive grove for €150,000”. I’ll gently inform them that in the heart of Chianti that budget might not go far, but perhaps in Umbria or Abruzzo it could be feasible. Thus, defining the wish-list clearly and then aligning expectations with market reality is a critical early step. Overall, I do believe that location comes first: figure out where you want to live (or spend time), then we’ll find a property that suits you there. It’s much easier to teach a client what different regions offer than to try to transplant a dream house into a region that might not actually suit their needs. As the saying goes, you can change a house but you can’t change where it is – so we make sure the where is right, and from there, the rest falls into place. I’ve found that clients who choose their area wisely are the happiest in the long run, even if it meant initially compromising on the property features. Conversely, someone who buys a stunning house in an area that’s inconvenient or doesn’t feel like “home” often ends up disappointed. So yes, it’s very fair to say that identifying the right location should precede choosing the property.
Second Home vs. Full-Time Residence – Different Priorities
Clients buying a second home in Italy often have a different mindset and set of requirements compared to those planning a full-time residence. For a start, second-home buyers are usually looking for a place to enjoy vacations and perhaps rent out to travelers, whereas full-time residents need a home that supports day-to-day living year-round. This leads to some distinct priorities:
For a full-time home (permanent relocation): Practical considerations come to the fore. These clients need to ensure the location has all the necessary infrastructure and amenities for daily life. For instance, we’ll discuss accessibility to shops, supermarkets, banks, healthcare, schools (if they have children), and other essentials . A retiree moving full-time might not need schools, but will care about hospitals and maybe an existing expat community or social opportunities nearby. Someone moving and still working (perhaps remotely) will need reliable internet, possibly proximity to an airport or transport for business travel, and maybe want a larger city or town for job opportunities. Size and layout of the house also matter – if it’s a primary home, the client may need more space or a more modern layout for comfortable living, whereas a second home could be charmingly impractical and that might be okay for short stays. Climate is another factor: a permanent resident needs to think about year-round comfort (heating in winter, cooling in summer), while a holiday-home owner might only be there in pleasant seasons . Integration and language are important too – a full-time mover should be prepared to learn Italian if they’re not in a big city, as daily life will require it in most areas outside tourist zones . I often go over things like the local community and whether many people speak English; some permanent relocatees prefer areas with established expat groups for support, others want to dive into authentic Italian life. Finally, full-timers must consider the cost of living and local economy: is the area affordable on their retirement income or remote-work salary? Are there taxes or residency requirements to plan for? All these practical matters are critical for those who will live in Italy 365 days a year . In short, permanent home buyers prioritize convenience, services, and livability – the romance of a secluded hilltop might yield to the reality that they’d prefer a village where they can walk to a cafe every morning.
For a second home or holiday home: These buyers often prioritize leisure and beauty – they’re looking for the idyllic getaway. Proximity to tourist attractions (beaches, historic towns, vineyards, etc.) can be more important than proximity to schools or jobs. In fact, many second-home owners deliberately choose more “picturesque” locations that might be too quiet or seasonal for a full-time life, but perfect for holidays. One practical priority unique to holiday homes is ease of access from their primary country. We always consider how simple it is to get to the home: Is there an airport within an hour or two with regular flights back to the UK/US/wherever? Are those flights year-round or only summer? A client who can only travel during certain months will want to ensure they can actually reach their vacation home conveniently. Another big consideration is security and maintenance in your absence. Second-home owners need to think about who will look after the property when they’re not there – so a house that’s not too isolated (or a development with a manager) can be attractive. Many prefer something in a secure setting or a condo with an on-site caretaker, just for peace of mind. If it’s a standalone house, we discuss hiring a local key-holder or gardener to check on it (more on that soon) . Upkeep and maintenance are also key: I often advise second-home buyers to consider how much garden or land they can realistically maintain if they’re absent most of the year. A huge garden might become a jungle unless you pay for regular gardening; a pool will need cleaning, etc. So sometimes a smaller, more manageable property is actually better for a part-time home.
Another aspect: Rental potential. Many second-home buyers are interested in renting the property out to holidaymakers when they’re not using it. This can influence location and type of property – e.g., a villa with a pool in a popular tourist region (Tuscany, coastal Puglia, Lake Como, etc.) will rent well, whereas a remote rural house in a non-touristy area might sit empty. So if rental income is a goal, I help them evaluate which locations have strong demand. Many international buyers do end up offsetting costs by renting their homes on Airbnb or similar for part of the year . That means thinking about features that travelers seek (air conditioning, scenic views, nearby attractions). Additionally, a second home buyer might be more flexible on space – for instance, they might be fine with a 2-bedroom cottage since they’re using it for getaways, while a full-time family would insist on 3-4 bedrooms for all their belongings and possibly a home office, etc. Seasonal usage also comes up: if someone only plans to be at their holiday home in summer, we might not worry if it’s hard to reach in winter (e.g., mountain areas that get snow) – but if it could one day be permanent, we’d consider year-round accessibility. Actually, some holiday-home clients do entertain the idea of eventually making it a retirement spot, so I ask them about that. If there’s a chance the second home could become a primary home later, it’s wise to choose a place that could meet long-term needs too (e.g., maybe not a 4th-floor walk-up if in 10 years you might live there full-time with knee issues!).
In summary, second-home buyers prioritize location charm, leisure amenities, and often rental potential, while full-time buyers prioritize everyday convenience, infrastructure, and community. There is overlap – everyone wants a nice location – but the weight given to practical versus romantic aspects differs. I’ll give a concrete example: A full-timer might choose a less “postcard” town because it has supermarkets, doctor’s offices and a train station, whereas a second-home owner might choose the cutest hilltown and not mind that it’s sleepy in winter. Both choices are valid; it’s about the use-case. I make sure to clarify which camp a client is in (holiday home vs permanent) because that will guide recommendations. In fact, I often run through a checklist with clients: Will you be here in winter? Do you need to integrate into local life or just enjoy vacations? How important are nearby services? Their answers guide us. Ultimately, Italy offers options for every scenario – we just match the property to the purpose. And I’ve noticed second-home buyers and permanent relocators are equally passionate, but in different ways: second-home folks gush about views and relaxation, while relocators talk about community and lifestyle integration. It’s fun to help each realize their dream on their own terms.
Renting Out a Second Home and Property Management
Many of our clients buying second homes do plan to rent them out to holidaymakers when they’re not using the property – it’s a very common scenario, both to generate income and to keep the home occupied. The good news is that renting out your property in Italy (for short-term holiday lets) is generally easy to do and widely practiced. Italy has a thriving vacation rental market – think of all the villas in Tuscany or apartments in Rome on Airbnb. There are no blanket prohibitions on foreign owners renting to tourists; in fact Italy encourages it as it boosts tourism. As one international realtor quipped, “You could easily Airbnb your home when you want – earning income – and there are no particular restrictions on this in Italy” . That said, there are some local regulations and procedures to be aware of. Most cities or regions require you to register the property as a holiday rental (often you get a CIS code or register with the local police portal to report guest details) . And you must collect the tourist tax from guests and remit it, plus, since a 2017 law, if you use platforms like Airbnb they automatically withhold a 21% tax on the rental income on behalf of the government . These are manageable details – I guide clients or connect them with an accountant to sort out the paperwork. Essentially, if you comply with local registration and tax reporting, you are perfectly free to rent out your second home.
The more practical challenge is managing the rentals from afar. Handling bookings and payments can be done remotely thanks to platforms and the internet – owners can be anywhere and use Airbnb, Booking.com, etc. to market the property . The tricky part is the on-the-ground tasks: greeting guests, cleaning between rentals, maintenance issues, and being on call if something goes wrong (like a boiler breaking while a guest is there). Since most second-home owners live in another country, they typically need to hire local help for these tasks . Fortunately, in most popular areas there are property management agencies and individuals who specialize in holiday home services. You can arrange a “key-holder” service, where someone holds the keys, welcomes guests or at least arranges key handover, and keeps an eye on the place . They can also coordinate cleaners and tradespeople as needed. We often help our clients find a reliable local contact – sometimes it’s as informal as a trusted neighbor who earns a side income, or it could be a professional agency for larger villas.
In tourist-heavy locations (like Chianti, Lake Como, coastal towns), it’s quite easy to find a property manager or rental agency – many companies offer full-service: marketing the rental, managing bookings, guest check-in/out, cleaning, and emergency maintenance. They charge a fee (often 20%–30% of rental income for full management, or a flat fee per changeover for simpler arrangements). In more rural or less touristic areas, it can be a bit more challenging to find someone. There are anecdotes of folks in very small villages struggling to find a cleaner or key-holder willing to drive out for occasional guests . Generally, though, if an area sees any holiday rentals, there will be at least someone around doing that job. When we realize a client intends to rent out a remote property, we make sure to research ahead of time if such services exist nearby (and I advise clients accordingly). One tip is to ask other foreigners or locals in the area – if there are other holiday homes, often one person is already servicing them. As a precaution, some insurance companies actually require having a local key-holder for second homes (for instance, to check the property every few weeks for water leaks etc.) . So, finding a trustworthy local partner is part and parcel of second-home ownership.
From an owner’s perspective, renting out can be very rewarding: it can cover your running costs and even turn a profit. For example, on the coast in high-demand spots, a small apartment can fetch quite high weekly rents in summer. A case in point: in Sardinia, a simple two-bedroom apartment (~€200,000 purchase price) can generate up to €12,000 in rental income in just the May–October season . Many of our clients love that idea – the home “pays for itself” when they’re not using it. I do remind them to temper expectations (there will be off-season months with little income, especially if not in a year-round destination ). But Italy’s popularity with tourists means decent occupancy is attainable in the right location. We discuss factors like: do they want to rent only to friends/family (some do, to keep wear-and-tear low) or open it to the public market? Are there any condo rules (if it’s an apartment) about short lets? Generally, Italy is not like some US cities with strict Airbnb bans – it’s quite permissive, though big cities like Florence and Venice are starting to discuss limits to protect long-term housing. Currently, for typical villa and rural properties, it’s straightforward.
On the work involved: using an online platform means handling inquiries, managing your listing, and perhaps some language issues with guests. Some owners hand all this to an agency – they essentially do nothing except receive a check minus the agency fee. Others manage bookings themselves to save money, but pay a local person per rental for cleaning and keys. There’s flexibility. Important is to ensure guest satisfaction: having someone local to contact if, say, the hot water stops working is crucial to avoid bad reviews. We sometimes facilitate introductions to English-speaking handymen or handle communications with service people.
Do most second homeowners rent out their property? I’d say a large number do, yes, at least for part of the year. Especially UK buyers – many explicitly tell me they want rental income when they’re not using it. American buyers too, though some Americans plan to use it more for themselves/family. Is it easy to do? Yes, administratively it’s quite easy, and practically it’s made easier by the many management services available. One should be prepared to incur some management costs, but those are factored into the profitability. Finding a key-holder or agency is usually not hard in popular areas; in fact, at closing, one of the after-sales services we often provide is introducing the new owner to trustworthy local contacts for property management. So yes, with a bit of networking, you can absolutely find someone to hold the keys and keep an eye on maintenance. Just remember to budget for those services in your calculations. But overall, Italy is very friendly to holiday-home rentals, and many second-home owners successfully offset their costs by sharing their little slice of Italy with vacationers.
All Sources
