Italy Real Estate Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Italy real estate market reached around USD 10.14 Trillion in 2024. The market is projected to grow at a CAGR of 0.90% between 2025 and 2034 to reach nearly USD 11.09 Trillion by 2034.

Italy Real Estate Market Growth

The average time for hunting a rental home in Italy is nearly 1.5 months. In 2022, the value of residential rents surged by 3.6%, while the gross rental yields were estimated at 5.5%. This can be attributed to the recovery in demand from tourist and student rentals post-2020.

There is an increasing preference for new or renovated houses among young people (working professionals, young couples, singles, and single-parent families) that are located close to public facilities, including schools, hospitals, and transportation services. Most of the Italian homebuyers (nearly 25%) reside in provincial capital municipalities and seek to move to another area within the same municipality. Most homebuyers purchase a home for residential purposes (45%), followed by replacement (29%), and investment (14%).

In Q1 2024, Italy’s commercial real estate sector attracted an investment of EUR 1.9 billion. Around 90% of deals were valued below EUR 50 million and the top 3 deals constituted a share of nearly 50% in the total value of transactions. Nearly 50% of the investments were aimed at various development and redevelopment projects.

There is a substantial gap between the demand and supply of residential and rental homes in Italy. While the demand for purchasing residential houses increased by 20%, its supply weakened by 30%. Rental housing properties witnessed a similar trend, with demand increasing by 80% and supply falling by 60%. As the European Central Bank eases its monetary policy, investments in the Italy market for retail are expected to gain momentum in the forecast period.

Key Trends and Development

Booming luxury real estate landscape; rising investments in multi-purpose student accommodations; growing focus on sustainability; and increasing integration of AI in real estate are aiding the Italy real estate market expansion.

July 2024

Proprium Capital Partners announced its decision to invest USD 100 million in the Italian flourishing student accommodation sector. The company aims to acquire and develop two purpose-built student accommodation (PBSA) projects to provide accommodation for over 1,600 students in the northern cities of Padua and Milan.

August 2023

PGIM Real Estate entered into a new joint venture with Cittamoderna for delivering and investing in residential properties in prominent Italian cities, including Milan. The joint venture aims to target developed and to-be-developed residential sites to develop, manage, refurbish, and sell properties via fractionated sale.

July 2023

Piece, an Italian real estate fintech, secured a funding of EUR 650,000 in the pre-seeding finance round. Through the funding, the company aims to strengthen its technological infrastructure and real estate investor community and streamline operations for managing, securing, and offering properties in Italy.

March 2021

GARBE Industrial Real Estate GmbH, a prominent European specialist in industrial and logistics properties, announced that it was expanding its real estate activities in Italy and France.

Booming Luxury Real Estate Landscape

Cities like Milan in the country are witnessing a rise in the demand for luxury real estate due to their renowned design and architecture, economic vitality, and exclusive neighbourhoods. The high quality of life, strategic location, and convenience of prestigious residential locations in such cities are surging the appeal of luxury real estate among international investors.

Rising Investments in Purpose-Built Student Accommodation

The purpose-built student accommodation sector is witnessing a rise in investments due to the increasing student population in the country, especially in cities like Rome and Milan. In the forecast period, the rising demand for student housing is expected to boost real estate investments in purpose-built student accommodation.

Growing Focus on Sustainability

With growing environmental threats and rising concerns about climate change, the focus on increasing the sustainability of real estate assets is increasing. Real estate agents are incorporating sustainability strategies to lower the environmental impact of buildings, increase the competitiveness and value of buildings, and attract environmentally conscious consumers.

Integration of AI in Real Estate

Real estate investors are integrating artificial intelligence and data analytics to optimise portfolio performance, facilitate predictive maintenance, and make informed decisions regarding property pricing and investments.

Italy Real Estate Market Trends

Technological advancements and innovations are revolutionising the real estate landscape to enhance customer experience and streamline operations. There is a growing adoption of IoT-enabled devices and sensors in real estate to provide real-time data regarding maintenance needs, energy consumption, and occupancy sensors.

The deployment of machine learning and artificial intelligence in real estate is personalising customer experiences, recommending properties, and providing tailored results based on customer preferences. Besides, real estate professionals are adopting blockchain technology to enable transparent, secure, and tamper-proof property transactions, eliminate intermediaries, and automate documentation.

Italy Real Estate Industry Segmentation

Italy Real Estate Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Sales
• Rental
• Lease

Market Breakup by Property

• Residential
• Commercial
• Industrial
• Land

Market Breakup by Mode

• Online
• Offline

Market Breakup by Region

• North-West Region
• North-East Region
• Central Region
• South Region

Italy Real Estate Market Share

Based on property, the market is segmented into residential, commercial, industrial, and land. In the forecast period of 2025-2034, the commercial sector is estimated to grow at a CAGR of 1.0% amid rapid economic growth in the country.

Leading Companies in the Italy Real Estate Market

In Q1 2024, offices remained the first asset class for real estate investors with Milan recording a take-up of nearly 93,000 square meters. Logistics emerged as another important asset class among investors and constituted a share of 17% of total investment. This is expected to drive the development of commercial and logistical facilities in the country.

• Casa & Country Italian Property Srl
• Christie’s International Real Estate
• Abode Srl,
• Lionard S.p.A.
• Sotheby's International Realty Affiliates LLC
• Radovix Immobiliare SAS
• San Niccolò Srl
• Madeinitaly Real Estate
• Carratelli Real Estate srl
• Italy Fudosan Real Estate
• Others

The comprehensive report looks into the macro and micro aspects of the market. The report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.