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

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.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Development

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 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 EMR 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.