Luxury houses, investment boom in the South, the North focuses on residence

Luxury real estate in Italia is running at two speeds, but with a common direction: growth. Driven by an uncertain international and geopolitical context and a system of national incentives, the luxury property market in Italia is undergoing a phase of profound transformation. After London's fiscal turnaround, which reduced the British capital's attractiveness for large estates, Italia (and Milan in particular) has become the new home of paperoni and large foreign investors. But domestic demand is also driving the market. According to the second edition of the Market Report Italia 2026 presented by Engel & Völkers in collaboration with Nomisma, the premium real estate market is confirmed to be extremely dynamic, with demand increasing by 6.3% over the course of 2025.

"Italy's prime real estate is proving resilient and attractive," commented Muhannad Al Salhi, CEO of Engel & Völkers Italia. Despite a slight slowdown in price growth (between +1.3% and +1.9%) compared to the previous two-year period, "the scenario remains positive, sustained by an international demand that on average represents 35% of total exchanges," added the ceo. What emerges strongly is the clear divergence in purchase motivations between the different areas of the country: while the North is driven by the need for a first home, the South and the Islands become the focus of investments and the Centre of the international lifestyle.

In the North, approximately one out of every two sales is for the purchase of a first home (50% in the North-West and 51% in the North-East). Milan is confirmed as the beating heart of this segment: Italian and international buyers are competing for penthouses and flats in central areas, pushing prices up. The average value for a new or renovated property ranges between € 10,000 and € 23,000 per square metre, with peaks of up to € 27,000 per square metre, making the Lombard capital the city with the highest quotations among the large urban centres as far as the prestige market is concerned.

Not only metropolises: Engel & Völkers points out that the elite tourist resorts such as Courmayeur (where the value of real estate touches EUR 20,000 per square metre) and Liguria, with Portofino and Santa Margherita reaching EUR 25,000 per square metre. In the North-East, Venice reaches 20,000 euro per square metre, while Cortina d'Ampezzo reaches 24,000 euro per square metre. In Trentino-Alto Adige, the peaks vary between 13,000 and 19,000 euro per square metre. Lake Garda, with peaks of 10,000 euro per square metre, exceeds the top prices of the lakes in the North-West (Maggiore and Orta), which stand at 8,400 euro per square metre.

The scenario changes radically moving towards the South. In fact, the South and the Islands record the highest share of purchases for investment in the luxury property segment, amounting to 23% of the total. Leading the ranking is Sardinia, the pearl of the national real estate market. On the Emerald Coast, between Porto Cervo and Porto Rotondo, seafront villas and luxury penthouses reach record prices of up to EUR 47,000 per square metre, with an average of between EUR 28,000 and EUR 33,000 per square metre. The Amalfi Coast and Capri also consolidate their status as top destinations, with peaks of €12,000 per sqm for properties with sea views and maximum privacy. Unlike Milan, centres such as Naples maintain a strong domestic footprint: 85% of buyers are Italian and as many as 9 out of 10 are looking for a main residence, with average prices between €5,800 and €7,000 per sqm.