Italy's luxury home prices in 2020: rising despite economic weakness

Italy's luxury real estate market continues to show growth, thanks to its lifestyle and appeal to remote workers. According to London-based real estate agency Savills, in 2023, prices for luxury residential homes in four major Italian cities increased by 1.8% year-on-year, while prices for vacation homes increased by 6.7%.

Milan, a center of innovation and education, has the highest housing cost in Italy at $17,371 per square meter, up 0.9% from 2022.

Rome, the capital of Italy, is very popular among tourists due to its historical attractions and cultural institutions, leading to a 2.2% increase in prices and rents in 2023.

Florence also recorded an increase, reaching 9600 euros per square meter, 3.5% higher than last year.

Interest in Sicily has also increased due to the TV and film industry, leading to an 11.3% increase in real estate transactions from 2019. Real estate prices in Rome also remain stable.

Italian lakes have long been a popular place to buy second homes, from Hollywood stars to world leaders. Property prices on Lake Como rose by 19.9% to 10,300 euros per square meter.

The growth in tourism has also increased demand for premium real estate in Italy.

Second home buyers are also interested in historic properties, trophy assets and proximity to business centers.

Current demand in the market is expected to expand into other attractive areas of Italy and Savills predicts that property prices in the secondary market will continue to rise.