Ciao, Investors! 👋
In this third edition of Real Estate Insights, we head to Italy, where one of Europe’s most elegant and historically rich real estate markets is making a modern comeback.
From record-breaking commercial investments in Milan and Rome to stronger mortgage access and steady rental growth, Italy’s property market in 2025 is blending stability with renewed investor confidence.
Let’s dive into the numbers and opportunities shaping this year’s Italian boom 🇮🇹
📊 Commercial Real Estate: Confidence Returns to Italy
The commercial property market has entered a strong growth phase.
💶 Investment volume: Up 24% vs. 2024, reaching nearly €8 billion in the first nine months of 2025.
🏙️ Top Markets:
Milan – 27% of total investment (led by office, logistics, and mixed-use developments).
Rome – 12% of total investment, boosted by public sector modernization and tourism.
🌍 International investors contributed 60% of total capital, showing that global funds are once again betting on Italian real estate.
Milan, Italy
🏠 Residential Market: A Tale of Two Segments
The residential market continues to climb, with transactions up 9.5% in the first half of 2025 compared to the same period last year.
However, not all segments are growing equally:
New developments: ⬇️ 4% decline – limited new supply and cautious construction.
Used properties: ⬆️ 10.4% increase – strong demand from domestic buyers and value investors.
Notably, investment property transactions now make up 18% of all deals — evidence of a maturing market where more buyers are entering for rental and capital appreciation opportunities.
💶 Prices and Rent: Moderate, Sustainable Growth
Price and rent trends remain healthy and stable:
Property prices: +2.2% in the last semester
Rents: +3%, supported by tight supply and urban demand
🏘️ Most popular property types:
Two-bedroom apartments – 34% of national transactions
One-bedroom apartments in Milan – a standout at 49%, catering to young professionals and investors seeking high occupancy
🏦 Financing: Easier Access, Lower Rates
Mortgage conditions are improving across Italy.
💡 The Euribor rate now stands at close to 2%, making borrowing more affordable than in previous years.
As a result, mortgage accessibility has increased, encouraging both first-time buyers and small-scale investors to return to the market with renewed optimism.
🌍 Investor Outlook for 2025
Italy’s 2025 property market is a balanced mix of growth, stability, and international confidence:
✅ Strong inflows of foreign capital
✅ Milan and Rome leading commercial recovery
✅ Healthy domestic demand in the residential market
✅ Affordable financing supporting sustainable expansion
Whether you’re targeting rental income or long-term appreciation, Italy now offers one of the most appealing real estate landscapes in Europe.
🏁 Bottom Line
Italy is no longer a “wait-and-see” market — it’s a buy-and-hold opportunity with steady fundamentals.
With robust investment inflows, improving mortgage conditions, and a well-diversified buyer base, 2025 is shaping up as a good year for Italian real estate.
CrowdSquare’s Team
Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.