The Italy Office Real Estate Market Report is Segmented by Building Grade (Grade A, Grade B and More), by Transaction Type (Rental and Sales), by End Use (Information Technology (IT & ITES), BFSI (Banking, Financial Services and Insurance), and More) and by City (Milan, Rome and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

In 2023, the Italy Real Estate Market reached a value of USD 241.2 million, and it is projected to surge to USD 494.6 million by 2030.

The Italy real estate market size reached USD 10.2 Trillion in 2024. Looking forward, IMARC Group expects the market to reach USD 11.3 Trillion by 2033, exhibiting a growth rate (CAGR) of 1.1% during 2025-2033. Rapid urbanization, government expenditure on infrastructure development, rising interest by foreign investors, smart city projects, and sustainable development projects represents some of the key factors driving the growth of the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on property, business, and mode.

The Italy Luxury Residential Real Estate Market Report is Segmented by Property Type (Apartments and Condominiums, and Villas and Landed Houses), by Business Model (Sales and Rental), by Mode of Sale (Primary (New-Build) and Secondary (Existing-Home Resale)), and by City (Rome, Milan, Venice, Florence, Naples, Turin, Lake Como and Lombardy Lakes Region and More). The Market Forecasts are Provided in Terms of Value (USD).

As of the final month of 2024, the value of commercial real estate in Italy was estimated at over one trillion U.S. dollars, up from approximately 887 billion U.S. dollars in 2018. In that year, Italy was the fourth-largest commercial real estate market in Europe.

The highest average price for residential property in Italy in September 2024 was registered in the region of Trentino South-Tyrol, followed by Aosta Valley and Liguria. These three regions ranked as the most expensive in the country also because of their strategic position, natural beauty and peculiarity. These characteristics make them economically successful and, from a touristic point of view, appealing to a wealthy public. In Trentino South-Tyrol, the square meter price of residential real estate was over 3,231 euros, nearly 1,400 euros above the country average. Lombardy: the most active market in the sector The region of Lombardy (which includes Milan) might not be as exclusive as the regions mentioned above, but its real estate market is the most active in Italy. In 2022, Lombardy registered over 165,000 transactions in the residential real estate segment. Moreover, the total value of these transactions amounted to almost 30 billion euros. Milan, an attractive destination for investments Thanks to its role as a capital of business and finance as well as an innovation hub, Milan was able to attract human capital and investments, both domestic and foreign. The ability to grow and innovate was also reflected in the city’s real estate market, the most dynamic in the country. The number of transactions in residential real estate in Milan increased steadily since 2012 and so did prices: some areas of the city are among the most expensive in the country to buy a property.

Housing Index in Italy increased to 113.60 points in the fourth quarter of 2024 from 112.80 points in the third quarter of 2024. This dataset provides - Italy House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Italy real estate market reached around USD 10.14 Trillion in 2024. The market is projected to grow at a CAGR of 0.90% between 2025 and 2034 to reach nearly USD 11.09 Trillion by 2034.

The Italian real estate market, valued at approximately €XX million in 2025, exhibits robust growth potential, driven by a compound annual growth rate (CAGR) exceeding 5% through 2033. This expansion is fueled by several key factors. Increased tourism and a growing luxury market, particularly in renowned cities like Rome, Florence, and Venice, significantly contribute to demand. Furthermore, a rising influx of foreign investors seeking high-quality properties and the increasing popularity of Italian lifestyle contribute to the market's dynamism. The market is segmented into villas and landed houses, apartments and condominiums, further differentiated geographically across major Italian cities and other regions. While the luxury segment commands significant attention, the broader market reflects diverse needs and price points, catering to both domestic and international buyers. Potential constraints to growth include economic uncertainties and fluctuating government regulations influencing property investment. However, the overall outlook remains positive, projecting sustained growth driven by the enduring appeal of Italian real estate and increasing global interest. The major players in the Italian real estate market, including Christie's International Real Estate, Sotheby's International Realty, and numerous local agencies, are well-positioned to capitalize on this expansion. The regional distribution of investment reflects global interest, with North America, Europe, and the Asia-Pacific region showing significant participation. Future growth is anticipated to be influenced by broader economic conditions, shifts in investor sentiment, and infrastructural developments. Continuous monitoring of these factors will be crucial for accurate market forecasting. Maintaining a competitive landscape, along with innovative marketing strategies and property management solutions, will likely determine success within this dynamic sector. The overall market shows considerable resilience and potential for substantial expansion over the next decade. Recent developments include: June 2022: The multinational real estate company Hines and Blue Noble, co-investors in the "Future Living" fund run by Savills Investment Administration SGR SpA, confirmed that a leasing deal with Starhotels for the management of a portion of the Corso Italia asset in the center of Florence has been finalized. As part of the new residential rental offer at Il Teatro Luxury Apartments - Starhotels Collezione, more than 150 luxury apartments of different sizes and styles will be available for stays of a few weeks to a few months.So, Corso Italia will start up again, keeping the area's cultural history while offering cutting-edge, in-demand apartments for rent., March 2022: Christie's International Real Estate announced their acquisition of Ansley Real Estate, a leading Atlanta-area luxury brokerage firm. After the acquisition, the company became known as Ansley Christie's International Real Estate. This acquisition will reinforce the brokerage's leadership in Atlanta's luxury market.. Notable trends are: Increase in Residential Properties across the Italy due to Less Mortgage Rates.

The Italian real estate market, valued at approximately €XX million in 2025, exhibits robust growth potential, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% through 2033. This expansion is driven by several key factors. Firstly, a resurgence in tourism and a growing influx of foreign investors, particularly from North America and other European countries, are significantly boosting demand. Secondly, Italy's appealing lifestyle, rich history, and cultural heritage continue to attract buyers seeking both primary residences and vacation homes. The market is segmented by property type (villas and landed houses, apartments and condominiums) and by city (Rome, Venice, Milan, Naples, Florence, and other cities). Rome, Milan and Venice consistently command premium pricing reflecting their high desirability. The luxury segment, catered to by firms like Christie's International Real Estate and Sotheby's International Realty, is experiencing particularly strong growth. While challenges such as bureaucratic complexities and fluctuating economic conditions exist, the long-term outlook for the Italian real estate market remains positive, fueled by sustained demand and strategic investments in infrastructure and tourism. Despite these positive trends, the market faces some headwinds. Rising interest rates and inflation pose a risk to affordability, potentially dampening demand in certain segments. Furthermore, regulatory hurdles and lengthy bureaucratic processes can create delays and complexities for both buyers and developers. However, the inherent attractiveness of Italian real estate, coupled with ongoing government initiatives to streamline processes and boost investment, is expected to mitigate these challenges and sustain the market's overall upward trajectory. The continued strength of the luxury segment indicates a resilience to broader economic fluctuations, suggesting the market’s underlying strength and future potential for growth. Regional variations exist, with Northern Italy generally commanding higher prices than the South, reflecting variations in economic activity and property desirability. Recent developments include: June 2022: The multinational real estate company Hines and Blue Noble, co-investors in the "Future Living" fund run by Savills Investment Administration SGR SpA, confirmed that a leasing deal with Starhotels for the management of a portion of the Corso Italia asset in the center of Florence has been finalized. As part of the new residential rental offer at Il Teatro Luxury Apartments - Starhotels Collezione, more than 150 luxury apartments of different sizes and styles will be available for stays of a few weeks to a few months.So, Corso Italia will start up again, keeping the area's cultural history while offering cutting-edge, in-demand apartments for rent., March 2022: Christie's International Real Estate announced their acquisition of Ansley Real Estate, a leading Atlanta-area luxury brokerage firm. After the acquisition, the company became known as Ansley Christie's International Real Estate. This acquisition will reinforce the brokerage's leadership in Atlanta's luxury market.. Key drivers for this market are: Rapid urbanization, Government initiatives. Potential restraints include: High property prices, Regulatory challenges. Notable trends are: Increase in Residential Properties across the Italy due to Less Mortgage Rates.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, ranging from rising interest rates, spiralling inflation and muted economic growth. Typically, estate agents can earn income via fees and commissions charged to clients, which allows them to protect their operating profit margin from property price fluctuations. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated rise of 1.2% in 2025 to €207.6billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing in the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated, being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this have started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, Proptech, which has been heavily invested in, will force estate agents to adapt, shaking up the traditional real estate industry. A notable application of Proptech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

Italy Office Real Estate Market size was valued at USD 21.4 Billion in 2024 and is expected to reach USD 26.9 Billion by 2032, growing at a CAGR of 2.9% from 2026 to 2032.

Key Market Drivers

Rising Demand for Sustainable and Green Office Spaces: The need for environmentally efficient office buildings in Italy is driven by the growing emphasis on sustainability. The number of LEED-certified office buildings in Italy increased by 35% between 2020 and 2023, according to the Italian Green Building Council (GBC Italia), indicating a trend toward more energy-efficient offices.

Growth of Flexible Workspaces and Co-Working Demand: Co-working and flexible office spaces are becoming more and more necessary as a result of the move to hybrid work styles.

The number of transactions in the residential real estate market in Italy decreased in 2023, after a slight surge the year before. With ******* property sales, 2023 saw one of the highest transaction activity during the observation period. When looking at regional figures, Lombardy accounted for almost one in four transactions in the residential real estate sector. Impact of the coronavirus pandemic on the market During the coronavirus pandemic, the market contracted, with the number of transactions falling by *** percent. That was followed by home sales surging in 2021, by more than one third. The market slowed down in 2022, but all regions, except for Emilia Romagna, recorded an increase in terms of transactions value. When looking at absolute numbers, Lombardy performed the best: the transactions’ value in the residential real estate sector in the region amounted to approximately ** billion euros. Lazio, Liguria, and Tuscany: the most expensive regions Lombardy might be leading in terms of total transactions value, but it is not the region with the most valuable residential properties. In fact, calculations about the average price of transactions in the sector reveal that Tuscany, Lazio and Aosta Valley have the most expensive properties in Italy. In 2023, all three regions registered an average transaction value of about ******* euros.

The Italian office real estate market, currently experiencing robust growth, is projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is driven by several key factors. Firstly, a strengthening Italian economy, fueled by increasing tourism and a resurgence in manufacturing, is boosting demand for office space, particularly in major cities like Milan and Rome. Secondly, the ongoing trend towards flexible workspaces and hybrid work models is reshaping the office market, with a growing need for modern, adaptable office environments. Furthermore, increasing foreign investment in Italy's thriving technology and financial sectors is contributing to higher occupancy rates and rental prices. While constraints such as limited supply of prime office space in key locations and rising construction costs exist, the overall market outlook remains positive. The major players in this dynamic market, including Impresa Pizzarotti, Webuild, CBRE Italy, and others, are actively responding to these trends by developing new projects and adapting their services to meet evolving market demands. This competition fosters innovation and ensures the ongoing improvement of office spaces across Italy. The segmentation of the Italian office market reveals strong performance in key cities such as Rome, Milan, and Naples, mirroring economic activity and population density. Turin's market also shows promise. However, while "Other Cities" comprise a significant portion of the market, their growth trajectory might lag behind major metropolitan areas due to lower economic activity and a less concentrated workforce. The historical period (2019-2024) likely saw fluctuations reflecting global economic events and, potentially, a period of slower growth before the current expansion. Assuming a 2025 market size of €10 billion (a reasonable estimate given the stated CAGR and market dynamics), a 5% annual growth rate projects the market to approximately €13.4 billion by 2028 (€10 billion * 1.05^3). This growth will be unevenly distributed across regions, with major cities likely exhibiting higher growth rates than smaller urban centers. This in-depth report provides a comprehensive analysis of the Italy office real estate market, covering the historical period (2019-2024), base year (2025), and forecast period (2025-2033). It delves into market size, trends, key players, and future growth prospects, offering valuable insights for investors, developers, and industry professionals seeking to navigate this dynamic sector. The study period encompasses significant market shifts, enabling informed strategic decision-making. Recent developments include: November 2022 - A major Milan office building was purchased by Macquarie Asset Management through an Italian real estate fund for roughly EUR 119 million (USD 126 Million). It has been an active participant in the Italian real estate market for a number of years, and it has now added this historic house to its portfolio of properties in the region. One of the most desirable gateway cities in Europe is Milan, with many opportunities to find higher-quality apartments with strong demand., Feb 2022 - The acquisition of an office building in Milan's Piazza Trento, in the Porta Romana neighborhood, from Europ Assistance Italy was finalized by BC Partners European Real Estate I (BCPERE I) and Kervis Group. This investment demonstrates even more clearly how confident it is in the stable foundations of the Milanese office and residential markets.. Key drivers for this market are: Increasing geriatric population, Growing cases of chronic disease among senior citizens. Potential restraints include: High cost of elderly care services, Lack of skilled staff. Notable trends are: Occupier and Investment Focus in Milan.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

Italy Office Real Estate comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

Key information about House Prices Growth

• Italy house prices grew 3.9% YoY in Sep 2024, following an increase of 2.9% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2011 to Sep 2024, with an average growth rate of 0.2%.
• House price data reached an all-time high of 5.2% in Jun 2022 and a record low of -7.1% in Mar 2013.

Technological advancements in the Italy Luxury Residential Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

The Italian mortgage market has grown substantially since 2014, with the value of mortgages outstanding increasing by about 62 billion euros until 2024. In the first quarter of 2014, the value of mortgages outstanding amounted to 359 billion euros and in the second quarter of 2024, it exceeded 421 billion euros. Mortgage interest rates in Italy The mortgage interest rates in Italy decreased significantly, falling to record lows, before rising dramatically in 2022. The period of decline in mortgage interest rates probably helped revive the residential real estate market in the country, which suffered after the financial crisis of 2008. In fact, the number of transactions in the sector increased steadily since 2013. A regional overview In some areas of the country, the residential real estate market appears to be more dynamic than in others. In fact, in 2022, the North-West of Italy accounted for more than one third of all transactions in the sector. When looking closely at the single regions, Lombardy was the most active, with more than 165,000 transactions registered. The second most prolific market was found in the region of Lazio, which recorded approximately 77 thousand transactions.

Investments in the Italian commercial real estate market amounted to 9.4 billion euros in 2024, which was a sharp increase from the previous year, when it reached its lowest record. Commercial real estate includes different types of properties used for business purposes, such as office, industrial and logistics, and retail buildings. In Italy, offices have traditionally been the most popular asset class among real estate investors.