In 2025 a single estate on Sardinia’s Costa Smeralda changed hands for €185 million, the largest residential transaction ever recorded in Italy. The buyer was foreign, and the sale highlights a broader shift: while foreign buyers now account for only about 5 % of total residential transactions (≈ 39 000 homes), they dominate the luxury segment, where spending per purchase is soaring.
Concentration of wealth, not volume
- International buyers represent roughly 70 % of top‑end market transactions according to Italy Sotheby’s International Realty, which closed 2025 with nearly €1 billion in deals and a 68 % revenue increase.
- Engel & Völkers reports that 35 % of the luxury residential market is owned by foreign buyers, many of whom purchase without financing.
- When financing is used, loan sizes are rising sharply: Luxforsale Finance recorded a 63 % jump in foreign applications in the first five months of 2026, with average financed values climbing from €14.59 million to €21.4 million within a year.
Ultra‑prime demand
- Gate‑away data show demand for properties above €3 million in Versilia grew 94.74 % in a single year.
- Dreamer Real Estate notes that 38 % of 2025 inquiries in Tuscany and similar locales targeted assets over €5 million.
Regional price leaders
| Region | Typical price (per sqm) | Notable sales / trends |
|---|---|---|
| Costa Smeralda | Up to €32,000 | Record €185 million estate; 80 % of buyers are foreign. |
| Lake Como | Waterfront homes ≈ €2.5 million; historic villas up to €30 million | Ranked among the world’s top 5 luxury second‑home markets. |
| Versilia (Tuscany) | Forte dei Marmi ≈ €16,100 (↑ 17 % since 2019); plots in Roma Imperiale ≈ €20,000 | High‑end stock valued over €4 billion. |
| Milan | Prime duplex sold for $28 million in Brera; price per sqm fell from ~60 m²/$1 m in 2020 to 45.8 m²/$1 m late 2025; 7 % annual growth mid‑2025 (fastest in Europe). |
Who is buying and why they stay
- Americans generate about 25 % of foreign inquiries and 20 % of Sotheby’s international clientele, ranking Italy as their second‑favorite property destination after the United States.
- British interest rose 23 % in 2025, linked to the UK’s non‑dom tax changes.
- Germans and Swiss dominate purchases around the northern lakes; buyers from India, Brazil and the UAE are the fastest‑growing cohorts, favoring standalone villas and high privacy.
Many purchasers are seeking residence, not just a holiday home. Italy’s flat‑tax regime—€300 000 per year on all foreign income for up to 15 years—has attracted roughly 4 000 participants since 2017, extending demand beyond traditional tourist zones to Milan, Rome, Tuscany and Como.
For non‑EU nationals, the Investor Visa offers a pathway with a minimum €250 000 investment in an innovative startup and no minimum stay requirement; applications reached a record 209 in 2025. Retirees in southern towns can combine property purchase with the 7 % flat tax on foreign income, though property ownership alone does not confer residence—both purchase and residency routes must be coordinated.
Outlook
Forecasts suggest national luxury‑price growth of ~1.5 % in 2026, with 3 %–7 % gains in Milan and Rome. Three Italian destinations now rank among the world’s top 30 for ultra‑high‑net‑worth individuals (UHNWIs). Prospective buyers should align residence status, tax elections, and purchase structure early, as each element influences the overall economics of an Italian luxury acquisition.
Source article: www.imidaily.com
