Gabetti’s analysis shows that the luxury real estate market in Italy is experiencing a phase of solid yet selective growth, driven by rising wealth and a growing preference for homeownership among the wealthiest segments of the population.
Taxpayers with incomes exceeding €120,000 have increased by 39% compared to 2008, while the share of homeowners among the wealthiest segment reached 95% in 2024. The geography of luxury is highly polarized: major cities such as Milan and Rome concentrate the largest absolute number of wealthy individuals, while in areas of relatively higher density, certain recurring patterns emerge, such as high-end tourist towns (e.g., Forte dei Marmi) or exclusive residential centers in the metropolitan hinterland (such as Basiglio, in the Milan area). Prices exceeding €6,000 per square meter are in fact concentrated in well-defined clusters—major urban centers, coastal, lakeside, and alpine resorts—outlining a market that is not widespread but aggregated into a few high-value hubs.
At the urban level, distinct patterns emerge among Italy’s major cities. Milan remains the most dynamic and mature market, with prices exceeding €12,600 per square meter in the city center and peaks above €14,500 per square meter in areas such as Brera and Porta Nuova, while also serving as the primary investment hub, accounting for 79% of capital allocated to luxury residential properties. Rome is characterized by values tied to historical and monumental rarity (approximately €10,300 per square meter in the city center), while Florence has the highest proportion of luxury properties in the overall supply (approximately 30%) and strong international demand. Bologna, Turin, and Genoa, on the other hand, have more specific market positions, based respectively on a balance of quality, affordability, and strong location-based factors, such as ocean views. On the rental front, rents exceeding €20/sqm/month are concentrated in major cities and economically dynamic regions, but tourist destinations—especially coastal and mountain resorts—dominate in terms of the concentration of luxury properties.
There has been strong growth in the luxury second-home segment, which grew by 22% over the past year and 95% over the past decade, now accounting for 76% of transactions exceeding one million euros. However, a mismatch between supply and demand persists, particularly in the mid-range segment between €6,000 and €10,000 per square meter, where two-bedroom units account for 43% of demand compared to a supply of 33%. On the investment front, in 2025 the Italian real estate market reached €12.3 billion (+20%), of which €841 million was in the residential segment and over €300 million in the luxury segment, driven primarily by institutional investors, with a significant share of foreign capital (37%).
