Italian Property Market Outlook 2026: Prices Set to Rise, Especially for Renters

The Italian real estate market is entering a phase of consolidation, building on trends established in the latter half of 2025. While rental demand is stabilizing after a period of rapid growth, property sales are gaining momentum thanks to improving credit conditions. But what does the future hold for 2026?

National Trends: A Broad Overview

According to new analysis from Immobiliare.it Insights, a leading Italian property data and analysis firm, both sale prices and rental rates are projected to increase across the nation in 2026. Nationally, sale prices are expected to rise by 3.1% by the end of the year. However, rental costs are predicted to outpace sales, climbing a significant 8.1%.

Cities Leading the Charge

Several cities are poised for more substantial growth than others. Florence is expected to see the largest increase in sale prices (+6.8%), followed closely by Catania (+6.6%) and Verona (+6.4%).

On the rental front, Bari is predicted to lead the way with a remarkable +9.3% increase, with Turin (+8.5%) and Palermo (+6.8%) also experiencing significant growth. This highlights a growing disparity between supply and demand in these key urban centers.

Milan and Rome: A Tale of Two Capitals

Italy’s two largest cities, Milan and Rome, are on different trajectories. Milan is expected to see more substantial price increases than Rome in both the sales and rental markets. Milan will maintain its position as Italy’s most expensive city. Sale prices in Milan are forecast to increase by 2% by the end of 2026, while Rome will see a more modest 1.1% rise.

Rental rates in Milan are projected to climb by 5%, compared to 4.2% in Rome. This difference reflects Milan’s continued economic strength and its attractiveness to both domestic and international renters.

Diving Deeper: City-Specific Price Forecasts

Looking at specific price increases, Florence is expected to see a rise of over €300 per square meter, pushing the average price above €5,000/sqm (from a current €4,738 to €5,061). Bologna will also experience a significant jump, adding €223/sqm (from €3,747 to €3,970).

Venice, surprisingly, is predicted to be the most stable market, with a limited growth of 1.4% in rental costs. This could be attributed to existing high prices and a more regulated tourism market.

Sale Price Increases (Per Square Meter) – Top & Bottom

• Highest: Florence (+€323), Bologna (+€223), Verona (+€179)
• Lowest: Rome (+€39), Genoa (+€24), Turin (+€22)

Rental Rate Increases (Per Square Meter) – Top & Bottom

• Highest: Bari (+€1.2), Florence (+€1.3), Milan (+€1.1)
• Lowest: Venice (+€0.2), (minimal increases in several other smaller cities)

Neighborhood Nuances: Milan and Rome in Focus

The Immobiliare.it Insights study also breaks down forecasts at the neighborhood level. In Milan, areas like Precotto-Turro (+8.7%) and Viale Certosa-Cascina Merlata (+8.3%) are expected to see the largest increases in sale prices. Central areas are driving rental growth, with the city center leading at +9.2%.

Rome presents a more mixed picture. While most neighborhoods will see price increases, some, like Termini-Repubblica (-2.9%) and Aventino-San Saba-Caracalla (-2.4%), are predicted to experience a decline in rental rates. Testaccio-Trastevere (+6.1%) is expected to lead the way in sales price growth.

Expert Commentary

“2026 is shaping up to be a year of continuity, building on the trends we saw in the latter part of 2025,” says Paolo Giabardo, Director General of Immobiliare.it. “Demand for housing will remain strong, impacting both sales and rentals. We anticipate more stable and moderate growth in sales, supported by favorable credit conditions. However, rental rates will likely increase faster than sales prices, reflecting a structural imbalance between supply and demand in major cities.”

Frequently Asked Questions (FAQ)

• Q: What is driving the increase in rental prices?
  A: Primarily, a shortage of available rental properties in major cities combined with sustained demand.
• Q: Is now a good time to buy property in Italy?
  A: It depends on your individual circumstances and investment goals. Improving credit conditions make it a more accessible time to buy, but prices are rising.
• Q: Which cities offer the best investment potential?
  A: Bari, Florence, and Milan are showing strong growth potential, but careful research is essential.
• Q: Will the property market eventually cool down?
  A: While a significant correction isn’t currently predicted, sustained economic growth and increased housing supply are needed to moderate price increases.

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