2 March 2026
Luxury real estate in Italy: wealth, second homes and investment strengthen the market
Download the reportItaly’s luxury real estate market grows between wealth and investment
Italian luxury real estate market remains solid and increasingly selective, supported by the growth of high-income taxpayers, a strong propensity for homeownership and the expansion of luxury second homes.
The report by Patrigest – Gabetti Group, in collaboration with Santandrea Luxury Houses, highlights a market polarized between major cities, elite tourist destinations and high-value clusters.
Second homes, luxury living and premium cities: how the market is evolving
The analysis explores Italy’s luxury real estate geography, the role of Milan and other major cities, the growth of second homes above €1 million and the increasing weight of luxury living investments.
Luxury real estate is concentrated across major cities, elite tourist destinations and high-value clusters
Wealth growth supports the luxury market
Over the past sixteen years, taxpayers earning more than €120.000 per year have increased by 39%, strengthening Italy’s high-spending demand base.
Rome and Milan lead in absolute numbers, while locations such as Basiglio, Forte dei Marmi and prime lake and coastal destinations stand out for their relative concentration of wealth.
Italian luxury real estate is growing, yet remains selective: value, rarity and quality drive demand and investment
Second homes and luxury living drive investment
The luxury second-home segment continues to expand strongly: transactions above €1 million recorded a 22% increase over the last year and have almost doubled over the past decade. Second homes now account for 76% of premium transactions, confirming the central role of elite tourist destinations.
Luxury living is also consolidating its role in the investment market, with more than €300 million invested in 2025 and Milan attracting 79% of capital allocated to luxury residential assets.
Selective demand, new needs and evolving urban markets
The analysis of supply and demand shows a residential luxury segment where needs are still not fully met, especially for smaller units. In the €6.000 to €10.000 per sqm range, one-bedroom units account for 43% of demand compared with 33% of supply, signalling changing expectations among high-spending clients.
Premium rentals are also strengthening in major urban hubs and tourist destinations, driven by professional needs and growing demand for housing flexibility. Milan leads in value intensity, Florence in the share of luxury within supply and Rome in historical and monumental uniqueness.
Overall, a mature and polarized ecosystem is emerging, where property quality, efficiency, location and the ability to meet new housing needs are increasingly central for investors, developers and market operators.