Nearly 800,000 homes sold in 2025, commercial investments above €3 billion in Q1 2026 alone, and a government decree trying to address the rental emergency. Here is what is happening in Italian real estate.
The Italian real estate market continues to grow, even as the global economy slows. In 2025, approximately 770,000 homes were sold — around 50,000 more than in 2024 — and the total residential market turnover approached €135 billion, up 8.25% year-on-year. For 2026, forecasts point to approximately 800,000 transactions, driven by solid demand and a chronic shortage of supply that continues to keep prices high, especially in major cities. Milan remains the most expensive and most active market, but similar dynamics are found in Bologna, Naples and many southern cities, with Puglia and Sicily among the areas of greatest buyer interest.
The commercial real estate segment is also performing well. In the first three months of 2026, €3.05 billion was invested, 13% more than the same period last year. Logistics stands out: warehouses and distribution centres recorded absorption of over 835,000 square metres in Q1 alone, nearly 60% more than a year ago, driven by major third-party logistics companies expanding to support e-commerce growth. In Milan, prime logistics rents reached €72 per square metre per year.
Meanwhile, the government approved Decree-Law No. 66 of 7 May 2026, the so-called Piano Casa. The goal is to increase the supply of affordable housing — a problem felt especially by young people, students and workers struggling to find homes at sustainable prices in major cities. The decree focuses on recovering and refurbishing existing public buildings, transforming them into subsidised rental housing without consuming new land. Resources of up to €500 million annually from 2027, rising to €700 million from 2031, are committed, with private sector involvement through PPP arrangements. Parliament has until 6 July 2026 to amend the text before final conversion into law.