With Services at 73% of GDP, Italy's Property Market Faces a Strategic Split

Servitization is changing real estate Italy — fast

Real estate Italy is no longer only about buildings and transactions. More than 73% of Italy’s GDP is now service-based, while the product economy makes up only 20–23%. That shift, explained by Enzo Baglieri, PhD of SDA Bocconi, at the Real Estate Awards 2026 (supported by idealista), forces a rethinking of how property market players operate. For buyers and investors this matters because it alters who adds value in a deal, how services are delivered, and where fees and risks migrate.

This article explains what servitization is, how it applies to Italian real estate, and what buyers, investors and expats should expect. We combine the panel’s arguments with practical advice: how to evaluate brokers, property managers and proptech platforms; what questions to ask; and where risks and opportunities lie.

What is servitization — and why it matters for property

Servitization is the economic shift from selling products to selling relationships and services. Baglieri described it as the move from a transactional economy to a relationship economy: producers and intermediaries no longer just sell a thing and walk away. They provide ongoing services that create value through proximity, communication, and tailored support.

Key facts from the panel brought into the property context:

• Italy’s economy is more than 73% services, so consumer expectations for service quality apply to real estate as well as to finance, retail and health care.
• Companies must choose between two operational models: service factories and service theaters.

A service factory is standardized, process-driven and scale-oriented. It is predictable and efficient; it reduces uncertainty for customers by delivering uniform outcomes. A service theater is relationship-driven, where flexibility, customization and the quality of client interaction matter. Both models can be improved by technology: digital tools and artificial intelligence can make factories more personal and theaters more efficient.

For the property sector this choice is not abstract. It influences commission models, marketing approaches, property management, after-sales service, and the emergence of specialist providers along the value chain.

Two service models: what buyers and investors should look for

Baglieri’s factory/theater distinction gives us a practical lens to assess agents, platforms and managers. We break down what each model means in practice and how that affects transaction experience and investment performance.

Service factory (scale and standardization)

A service factory is built around repeatable processes, automation and a tight set of service-level agreements. In real estate, the characteristics include:

• Automated listing distribution and standardised property marketing
• Fixed-fee or volume-based commission structures
• High use of proptech for lead management and virtual viewing workflows
• Emphasis on turnaround times and consistent documentation

Why some buyers prefer this: predictability, lower transaction friction, and often lower fees. Why some investors favour it: operational cost control, easier replication across portfolios, and simplified reporting.

Service theater (customisation and relationships)

A service theater prizes expertise and personal relationships. Characteristics include:

• Bespoke marketing, concierge-style buyer services and tailored negotiation strategies
• Deep local market knowledge and high-touch client management
• Flexible fee arrangements tied to specific outcomes or bespoke tasks
• Strong after-sale services such as renovation oversight and tenant placement

Why buyers choose this: complex purchases, luxury homes, cross-border transactions or those needing legal/tax navigation. Why some investors value it: protection of asset value through hands-on management and premium positioning.

The hybrid effect: technology reshuffles roles

Baglieri emphasised that technology, including AI and digitalisation, makes hybrid approaches possible. A mass-market brokerage can use AI to personalise communications and make a factory behave more like a theatre for specific clients. Conversely, high-end advisors can adopt workflow automation to scale certain routine tasks and improve margins.

For market participants this leads toward specialisation and collaboration along the value chain. Expect to see firms that focus on one role and outsource others: one operator handles transactional volume, another provides bespoke legal support, while a third manages post-sale services.

How this shift plays out across Italian property segments

The servitization trend does not affect all segments equally. We outline likely winners and losers and what this means for pricing and service quality.

• Mass-market residential: Firms operating as service factories will grow by offering consistent, low-cost transactions. Buyers in this bracket will value transparent fees and quick closings.
• Luxury and complex deals: Service theaters will retain value. Wealthy buyers and cross-border investors want advisors who handle tax, permits and renovation with a white-glove approach.
• Rentals and lettings: Property management will split between industrialised platforms that run portfolios and local managers offering tenant relations and maintenance as bespoke services.
• Short-term rentals: Operational scalability matters; service factories that manage turnover, cleaning and dynamic pricing will dominate city markets.

For investors, the implication is clear: asset returns will increasingly depend on the quality of services layered on top of physical property. Operating models, not just location, will affect net yields and exit values.

Practical implications for buyers, investors and expats

We give concrete advice. These are the operational indicators and questions you should use when choosing partners in Italy’s evolving real estate market.

What to ask a broker or agent:

• Do you operate as a service factory or a service theater? Ask them to explain systems, scale and personal touch.
• What tech do you use for valuation, lead tracking and due diligence?