Best Italian Cities for Real Estate Investment in 2025

Italy has always been a popular destination for tourists and expatriates, but in recent years, it has also emerged as an appealing hub for real estate investors. With a rich history, stunning architecture, and a diverse range of properties, Italy offers unparalleled opportunities for lucrative real estate investments. Whether you’re looking to buy a vacation home, a luxury villa, or a rental property, certain Italian cities offer higher potential for return on investment (ROI) than others.

Why Invest in Italian Real Estate?

Before diving into specific cities, let’s first understand why Italy is a prime destination for real estate investment.

• Diverse Market: Italy offers a variety of real estate options ranging from coastal properties to rural farms and historic villas in major cities. This diversity ensures that there’s something for every type of investor.

• Favorable Market Conditions: The Italian government has introduced several incentives for foreign investors, including favorable property tax rates and residency programs for investors.

• Tourism: Italy is a top travel destination. Cities like Rome, Florence, and Venice attract millions of tourists every year, creating opportunities for rental income.

• Lifestyle: Italy offers a high quality of life, which continues to attract international buyers, especially retirees and people looking to relocate.

Top 5 Italian Cities for Real Estate Investment in 2025

In this section, we will focus on five of the best Italian cities for real estate investment. These cities offer high growth potential, a booming tourism market, and profitable real estate options.

1. Rome

Why Invest in Rome?

Rome, the capital of Italy, is not only a political and cultural hub but also one of the top cities for real estate investment. The city boasts a rich historical legacy, iconic landmarks, and a vibrant property market that attracts both international investors and local buyers.

• High Demand for Short-Term Rentals: With millions of tourists visiting Rome every year, properties, particularly in central locations like Trastevere or near the Vatican, are in high demand for short-term rental investments.

• Luxury Market: Rome’s luxury real estate market is booming, with affluent buyers seeking prime properties such as historic palazzos and modern luxury apartments.

Price Range:

• Average price per square meter: €3,500 – €5,000

• Luxury properties can go beyond €10,000 per square meter.

2. Milan

Why Invest in Milan?

Milan is the financial and business capital of Italy. Known for its fashion, design, and business sectors, Milan attracts investors who are looking for both long-term rental properties and luxury real estate. The city is also home to a large international expat community, making it ideal for investment.

• Business Hub: The constant influx of business professionals ensures that rental properties in Milan remain highly profitable.

• Growing Luxury Sector: Milan’s high-end real estate market continues to grow, with an increasing number of luxury developments attracting international investors.

Price Range:

• Average price per square meter: €5,000 – €7,500

• High-end properties can exceed €15,000 per square meter.

3. Florence

Why Invest in Florence?

Florence is an internationally renowned city famous for its art, architecture, and history. While it may not be as large as Rome or Milan, Florence offers a unique blend of beauty and investment potential.

• Tourism and Short-Term Rentals: As one of Italy’s top tourist destinations, Florence offers great opportunities for short-term rentals, especially in the city center near landmarks such as the Duomo.

• Luxury Villas: The Tuscan countryside, which surrounds Florence, is home to numerous luxury villas, attracting wealthy international buyers.

Price Range:

• Average price per square meter: €3,500 – €4,500

• Luxury villas can start from €10,000 per square meter.

4. Naples

Why Invest in Naples?

Naples, located on the southwestern coast of Italy, is a city in transition. Once considered a less favorable market compared to Milan or Rome, Naples has seen a resurgence in interest from investors looking for lower-priced properties with high rental yield potential.

• Up-and-Coming Market: Naples is an emerging market for real estate investors, with prices still relatively low compared to other Italian cities.

• High Rental Yield: Given its proximity to the Amalfi Coast and Pompeii, Naples has significant rental potential for short-term vacation rentals.

Price Range:

• Average price per square meter: €1,500 – €2,500

• Luxury properties can go up to €5,000 per square meter.

5. Venice

Why Invest in Venice?

Venice is one of the most iconic cities in the world, and despite its relatively small size, it remains one of the top real estate investment destinations in Italy.

• Tourism Hotspot: Venice attracts millions of tourists every year, creating lucrative opportunities for short-term rentals.

• Stable Market: Venice’s real estate market has historically been stable, with a limited number of properties available for purchase due to the city’s unique geography.

Price Range:

• Average price per square meter: €5,500 – €7,000

• Premium properties can cost €10,000 per square meter or more.

Benefits of Investing in Real Estate in These Cities

1. Stable Returns on Investment

Italian real estate has historically provided stable returns, especially in cities with high tourism or business activity like Rome, Milan, and Florence. By focusing on high-demand rental markets, investors can earn consistent rental income.

2. Capital Appreciation

The Italian real estate market has seen significant growth in certain cities. With a growing number of international investors and limited supply in key areas, property values in cities like Milan and Rome are expected to appreciate over time.

3. Tourism Potential

Tourism remains one of Italy’s most profitable sectors. With millions of visitors each year, short-term rentals in cities like Venice, Florence, and Rome can generate substantial income, making these cities ideal for investors focused on high-yield properties.

4. Cultural Appeal

Italian cities offer investors more than just high returns; they provide the opportunity to own a piece of history. Properties in historic locations such as Florence, Venice, and Rome are attractive not only for investment purposes but also for personal enjoyment.

Product Comparisons: Investment Opportunities in Italian Cities

Here, we compare five key types of investment opportunities across different cities in Italy.

How to Buy Real Estate in Italy

If you’re interested in purchasing property in Italy, follow these steps to ensure a smooth process:

1. Find a Real Estate Agent: Engage with a qualified local real estate agent who specializes in international transactions.

2. Verify Legal Requirements: Make sure you understand the legal framework for foreigners buying property in Italy.

3. Sign a Preliminary Contract: This contract will outline the terms and conditions of the sale, including payment schedules.

4. Complete the Final Deed: Once all conditions are met, you’ll sign the final deed of sale at the notary’s office.

5. Pay Taxes and Fees: Be aware of additional costs like notary fees, registration fees, and taxes (which vary depending on the region and type of property).

Where to Buy Real Estate in Italy

• Online Platforms: Websites like Idealista and Immobiliare list a wide range of properties in various Italian cities.

• Local Agents: Contacting a local real estate agent is often the best route for those looking for personalized advice and off-market deals.