Sustainability fuels Italian real estate recovery and growth

RE/MAX Italia’s latest Real Estate Data Hub report indicates a robust recovery and a positive future for the Italian real estate market, propelled by a new emphasis on sustainability.

Real Estate Data Hub - REMAX Italia

Specifically, the residential sector, bolstered by accessible credit, is projected to experience a boost in demand and sales during the first half of 2025, building on its strong performance in 2024.
While less energy-efficient properties (Class E, F, G) still make up the majority of sales (72–75%), their dominance is waning. Conversely, the market share of more efficient homes (Class C, D) is rising, and even Class A, B properties are seeing gradual increases.
This trend underscores the growing appeal of energy-efficient homes, which sell faster—around 147 days for Class A, B properties compared to 160 days for E, F, G properties.
Further boosting this shift is the increasing popularity of Green Loans. These specialised mortgages for highly energy-efficient homes offer attractive terms, such as a fixed APR of 2.19% and often no application or appraisal fees. With average monthly payments about 15% lower than traditional mortgages, Green Loans are significantly encouraging the purchase of Class A and B homes.
The Italian residential real estate market proved robust in H1 2025, with transaction growth exceeding 9% compared to the previous year. Average property prices rose by 2.4% year-over-year, with major cities seeing more significant jumps. Milan experienced a 9% increase in both property values and sales volume, while Rome's market saw prices rise by 3%.
Italy's commercial real estate sector saw a 50% surge in investments compared to the previous year, with foreign investors contributing nearly two-thirds of the total. Retail (28%) and hospitality (25%) attracted the largest shares of these investments, followed by logistics (14%) and offices (13%).
Retail rental rates nationwide are varied, depending on location and property type. The hospitality sector, especially luxury accommodations (over 90% of its volume), remains a key investment area.
Logistics drew 14% of investments, with strong demand for top-tier facilities. There is a continued emphasis on urban regeneration, as over 30% of new logistics projects are being built on former industrial sites. Rents for prime logistics properties are expected to remain stable or grow modestly.
In contrast, the office market saw cautious investor activity, with a preference for smaller spaces leading to a decrease in average transaction size.
Dario Castiglia, CEO & founder of RE/MAX Italia, commented: "The outlook for the second half of 2026 is cautiously optimistic. Demand appears solid, with a growing focus on energy-efficient and well-connected properties. Major cities remain the main drivers of growth. Despite some uncertainties related to the international economic scenario, the Italian real estate market now appears more resilient and offers room for selective development."