What has happened
The Italian luxury real estate market is enjoying a successful year. In Italy's four major cities, luxury home prices rose 1.8% in 2023 compared with the year, and in resort areas by 6.7%, according to a report from London-based property brokerage Savills.
Four of Italy’s major cities saw luxury home values increase by 1.8% in 2023 compared to the previous year, and second-home locations saw an increase of 6.7%, according to a report from London-based real estate brokerage Savills.
Regions
- Milan, a hub of innovation and education, had the highest price per square meter of luxury residential property in Italy: €15,975 per square meter, up 0.9% from a year earlier.
- Italy’s capital holds historical landmarks and cultural institutions making it a hot spot for tourists, helping Rome experience a 2.2% increase in prices and rents in 2023, a trend Savills predicted will continue.
- Meanwhile, Florence also saw an increase in the average price of luxury housing, amounting to €9,600 per square meter, up 3.5% from a year earlier.
- Sicily has seen renewed interest from local and international buyers thanks to the TV and film industry. In 2023, the city recorded an 11.3% growth of transactions in the real estate market compared to 2019. According to Savills, property prices remained stable.
- The Italian lakes have long been a hot spot for holiday home buyers, from Hollywood celebrities to world leaders. Prime prices were led by Lake Como, at €10,300 per square meter, up 19.9% in 2023.
The main trends
- The rise in tourism has helped support demand in Italy's luxury property market. For example, international buyers account for 40% of Florence's luxury market, according to Savills.
- Buyers in Italy are now no longer location-dependent, allowing them to seek out the best properties with features and amenities, according to Savills. Key amenities include waterfront or countryside views and large terraces.
- The resort and out-of-town markets have also attracted international demand, pushing up prices in markets like Lake Como and Portofino, where the supply of properties is limited.
- Luxury home buyers are also interested in historic Italian properties, trophy assets and proximity to major business hubs.
Source: Mansion Global
Photo by Toni Deis on Unsplash
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