Italy real estate market — prices, rental yield and trend
- Average price: $2,354 / m²
- Gross rental yield: 8.63%
- 12-month price change (USD): 1.9%
- Net rental yield: 6.82%
- Transaction cost: 14%
- Bubble-risk band: moderate
- Price basis: national average
Residential property in Italy averages $2,354 per square metre. In dollar terms the market has barely moved over the last twelve months (+1.9%). That makes it the 57th most expensive of the 83 markets in the set.
What a buyer pays in Italy
The $2,354 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 14% of the price here. On a 100 m² apartment at the average price that is roughly $32,956 on top of the $235,400 purchase price. That is above the 10.2% median across the set — the entry cost is part of the investment case here.
What it earns
A square metre lets for about $16.9 a month. Against a purchase price of $2,354 per square metre that is 8.6% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 7th of 88 markets by gross yield. Rental income is taxed at 21%, which takes the yield down to 6.8% net. The 1.8-point difference between the gross and net figure is the part most listing sites leave out.
How the tax works. Flat 21% under the cedolare secca (Legislative Decree 23/2011 art. 3), a substitute tax on the full rent that replaces IRPEF, the regional and municipal surcharges, registration duty and stamp duty. The law sets no residence condition, so non-residents can opt in, and it beats the ordinary IRPEF outcome (about 22–23%) at every typical rent level. The 2026 changes affect short-term lets only. Source: fiscoetasse.com.
Where the price sits against its own history
Prices are +13.8% over five years and +24.9% over ten in local terms. Today’s level is within 8% of the country’s own long-run trend, so the price is close to where its own history would put it. Glopra’s bubble-risk score for Italy is 48 out of 100 — moderate risk. Of the 58 markets scored, 44 read higher.
Italy house price index, 2016–2026 (2016 = 100)
| Year | Index |
|---|---|
| 2016 | 100 |
| 2017 | 98.9 |
| 2018 | 98.3 |
| 2019 | 98.2 |
| 2020 | 100.1 |
| 2021 | 102.7 |
| 2022 | 106.6 |
| 2023 | 108 |
| 2024 | 111.4 |
| 2025 | 115.9 |
| 2026 | 118.8 |
Rebased to 100 in 2016, the index stands at 118.8 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.
Who can buy in Italy
Freehold; reciprocity required for non-EU buyers. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Italy is built from asking prices from listings. It was last refreshed on 2026-09-28. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.
Sources: Agenzia delle Entrate OMI Rapporto Immobiliare Residenziale 2026 · agenziaentrate.gov.it · globalpropertyguide.com · ec.europa.eu. Snapshot: 2026-09-28.
Latest Italy market analysis
- Italian Building Costs Rose 2.9% Over the Year While Road and Rail Costs Rose 5.7% — 2026-09-29
- Italian House Prices Rose 4.0% in the Second Quarter, With Turin Up 8.5% and Milan Up 2.4% — 2026-09-18
- Italian Home Sales Held Flat in Q2 2026 While Florence Fell 8.3% — 2026-09-13
- Italian Asking Prices Edged Up 0.1% in August to €2,031 per Square Metre — 2026-09-04
- Italy Opens a 700 Million Euro Tender in September to Reclaim Derelict Public Housing — 2026-08-23
- Italian House Price Momentum Halved in Q2 as New Sale Mandates Dried Up — 2026-08-14
- Italian Asking Prices Fell 1.1% in July, the Sharpest Monthly Drop of 2026 — 2026-08-11
- Italy: A Country Overview for International Property Buyers — 2026-07-03
- Buying Costs and Taxes in Italy: What to Budget in 2026 — 2026-07-03
- Italy's Property Market in 2026: Prices, Yields and What's Driving Demand — 2026-07-03
- Buying Property in Italy as a Foreigner: Your Rights and the Path to the Keys — 2026-07-03
Related markets: Siracusa (Ortigia) · Sassari (province · Palermo (province) · Lecce (Salento) · Venezia (province) · Bolzano-Bozen (province)