2025 Italian Luxury Real Estate Market: Trends about Foreign Buyers

Investment tips

8 March 2025

by Lorenzo

italian luxury real estate market countryside

Foreign Investment and Resilience in Italy’s Luxury Real Estate Market

Italy’s luxury real estate market has long attracted international buyers thanks to the country’s architectural beauty, rich culture, pleasant climate, and lifestyle. In recent years, foreign demand has become a cornerstone of the high-end property sector: around 50-60% of luxury home buyers in Italy are from abroad.

Despite global economic uncertainties, this segment remains robust, partly because wealthy buyers often purchase in cash without needing mortgages. Italy also offers competitive prices compared to other elite markets – for example, prime properties in Milan cost about 15% less than in London and 36% less than in Geneva (Idealista/news).

These factors, combined with tax incentives for new residents, have positioned Italy as an increasingly attractive destination for affluent foreigners. Notably, interest from North America and Europe has surged.

Americans now account for the largest share of foreign inquiries for Italian homes on some platforms (nearly 30% – Corriere.it), and buyers from across Europe (Germany, UK, France, etc.) continue to flock to Italian luxury real estate.

This report provides an in-depth analysis of Italy’s luxury property market with a focus on foreign buyers – particularly from the U.S., Canada, and Europe – addressing what types of properties they purchase, where and why, the features they value, recent market trends (2023–2024), the role of renovations, and investment in properties for hospitality or commercial use. Each section is supported by data from industry reports and market research.

Types of Luxury Properties Favored by Foreigners

International buyers in Italy predominantly seek stand-alone luxury homes, with villas being the top choice. According to market analyses, villas make up over half of foreign luxury property searches (about 53.2%), far outpacing apartments (around 20% – UNINDUSTRIA).

The remaining share consists largely of countryside residences – historic farmhouses, country estates, and similar properties in rural areas. This reflects a strong desire for spacious homes with land, privacy, and often a connection to Italy’s rustic charm.

Table: Breakdown of Foreign Luxury Property Searches by Type (UNINDUSTRIA)

Property TypeShare of Searches by Foreign Buyers
Villas53.2%
Apartments20.0%
Countryside estates (farmhouses, etc.)~26.8%

Foreigners show a notable enthusiasm for historic and unique properties. Many buyers specifically seek renovated farmhouses, medieval mansions, castles, and other heritage properties that capture the romance of Italian history.

For example, there is growing demand from overseas buyers (including Canadians, Australians, and New Zealanders) for luxury homes in medieval villages and countryside locations – they are enchanted by stone farmhouses, castles, towers, and palazzi that date back centuries.

These properties offer a charm and antiquity unavailable in their home countries, along with peace and picturesque landscapes. Even niche property types unique to Italy have seen increased interest: Tuscan casali (farm villas), Apulian trulli, Sicilian dammusi, and Matera’s sassi have all experienced rising foreign buyer inquiries.

What Foreign Buyers Look For: Unique Homes with Character and Prime Locations

This trend underscores that beyond the classic villa, international buyers value one-of-a-kind real estate – whether it’s a countryside vineyard estate or a historic city palazzo – especially when it combines Old World character with modern luxury.

It’s also worth noting that some foreign investors target urban luxury apartments, particularly in cities like Milan and Rome (often as pied-à-terre or investment properties). However, even in cities, high-end apartments sought by foreigners tend to be those with unique features (penthouse units, historic buildings) or prime locations.

Overall, detached homes – whether seaside villas, lakefront mansions, or country houses – remain the quintessential choice for most foreign luxury buyers in Italy (Trend of real estate buying and selling by foreigners in Italy).

Most Sought-After Locations in Italy

Foreign luxury-home buyers are attracted to specific areas of Italy that offer prestige, beauty, and lifestyle – ranging from art cities to coastal resorts and idyllic countryside.

Major cities are always in demand: Milan and Rome consistently top the list of searches by wealthy international house-hunters. Milan, Italy’s financial and fashion capital, accounts for roughly 19% of foreign luxury property searches, and Rome closely follows with about 18.6%.

These cities appeal for their cultural assets, urban amenities, and, in Milan’s case, business opportunities. Florence ranks next (~7.6% of foreign searches), reflecting its appeal to art lovers (Americans in particular are very drawn to Florence’s timeless charm and have been driving its luxury market higher (WSI).

Other notable cities include Venice (~5.6%) and Turin (~2%), as well as Naples (~1.6%), which is gaining interest as it revitalizes.

Iconic Italian destinations

However, Italy’s iconic leisure destinations are just as coveted. Many foreigners specifically seek homes in renowned holiday areas: for instance, Lake Como (in Lombardy) has become a hotspot, and properties around Lake Como comprised roughly 5% of foreign luxury searches (UNINDUSTRIA).

This lake district, with its dramatic scenery, villas (one famously owned by George Clooney), and proximity to Switzerland, has seen prime prices jump nearly 20% in 2023 – the highest rise in Italy – driven largely by international demand.

Beautiful Italian sea destinations

Likewise, the Italian Riviera is prized: in Liguria, towns like Portofino (1.3% of searches) and Santa Margherita Ligure are perennially popular for their exclusive seaside ambiance. On the Tuscan coast, Forte dei Marmi (1.0%) stands out as an elite seaside resort favored by wealthy Europeans and Russians in past years.

In the south, Capri – the famed island in the Bay of Naples – is the top non-city location in searches, at 2.5%. Its combination of natural beauty and glamour (and limited supply of properties) keeps it highly desirable.

The nearby Amalfi Coast (with cliffside towns like Positano and Ravello) and Tuscan Riviera also attract foreign millionaires, especially for villas with sea views. Moving to the islands, Sardinia’s Costa Smeralda is a magnet for international jet-setters; in fact, around 80% of luxury property buyers in the Costa Smeralda are foreign.

Sardinia’s emerald coast and private estates saw prime prices soar +18% in 2023 amid strong overseas demand. Similarly, Sicily has risen on the radar – partly thanks to popular media (films and TV series showcasing its locales) and its relatively affordable prices. Areas like Taormina, the Val di Noto, and even lesser-known countryside spots in Sicily have seen increased interest from both European and American buyers.

Table: Top Italian Locations by Foreign Luxury Buyer Interest (UNINDUSTRIA)

LocationShare of Foreign Luxury Searches¹
Milan (city)19.0%
Rome (city)18.6%
Florence (city)7.6%
Venice (city)5.6%
Lake Como (lake region)5.0%
Capri (island)2.5%
Turin (city)2.0%
Naples (city)1.6%
Portofino (coastal town)1.3%
Forte dei Marmi (seaside town)1.0%

Related articles

Get in touch

We're here to answer your questions and help you take the next step with clarity and confidence.

Contact Us View properties
Right Menu Icon