🏙️ In 2026, Italy’s real estate market is expected to maintain moderate growth, with national price forecasts in the range of 3–4%. The largest cities remain ahead of the broader market. Prices in Milan are expected to rise by around 7.3%, while Rome may see growth of approximately 6.8%.

📈 Data for 2025 supports this trend. According to Istat, home prices in Italy increased by 4.0% over the year, while in the fourth quarter they rose by 4.1% year-on-year. Existing homes showed the strongest growth, increasing by 4.7%, while new builds rose by only 0.6%.

💡 What is happening in the housing market

— home prices are expected to grow by around 3–4% in 2026;
— Milan and Rome remain the leading major cities;
— existing homes are rising in price faster than new builds;
— rents are growing noticeably faster than sale prices.

🏠 The key signal for investors comes from the rental market. According to Immobiliare.it, by the end of 2026, home sale prices in Italy may increase by around 3.1%, while rents could rise by 8.1%. This makes rental strategies especially relevant in cities with strong demand from students, young professionals, tourists, and foreign buyers.

🏦 The market is also supported by the gradual recovery of mortgage demand. Rates are already below their 2023 peaks, but still remain higher than during the period of cheap lending. As a result, buyers are increasingly assessing not only the property price, but also the future monthly payment, rental income, and maintenance costs.

🌍 For foreign buyers, Italy remains a highly uneven market. Milan and Rome look more liquid, but require a higher entry budget. Tourist cities and university hubs offer stronger rental potential, while in weaker locations, buying solely in expectation of general price growth becomes riskier.

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