Milan Leads Italy’s Luxury Real Estate Market with Prices Up to €27,000/sqm
Milan, Italy – Milan continues to solidify its position as the undisputed leader in Italy’s luxury real estate sector, with prime properties in central areas commanding prices as high as 27,000 euros per square meter. This is according to the recently released “Market Report Italia 2026” by Engel & Völkers Italia, developed with the scientific support of Nomisma.
The report indicates that the average prices for new and renovated properties in the Lombard capital range between 10,000 and 23,000 euros per square meter. Milan’s appeal extends to both Italian buyers and international investors, who represent 20% of the total market, primarily seeking apartments and penthouses in its prestigious central districts.
Stable Growth and Sustained Demand Expected Through 2026
The premium real estate market is projected to maintain its trajectory of stable price growth and increasing demand throughout 2025 and 2026. This sustained interest is fueled by both high-net-worth domestic buyers and a growing segment of international buyers, who are expected to constitute 35% of the total market. These international investors are particularly drawn to lifestyle and tourist destinations, including scenic rural areas, historic art cities, and picturesque coastal regions.
Muhannad Al Salhi, CEO of Engel & Völkers Italia, highlighted the robust activity in the market, stating, “The continuous interest in high-quality residences leads us to sell an average of 8 properties per day in Italy.”
Key Trends in Property Acquisition
In 2025, the primary home purchase accounted for approximately 50% of premium transactions in Northern Italy (50% in the North-West and 51% in the North-East). Central Italy, however, showed a slight preference for second homes, making up 42% of purchases compared to 41% for primary residences.
The South and Islands recorded the highest proportion of investment purchases, at 23% of the total, while primary home acquisitions stood at 40% and second homes at 37%.
International Buyers Favor Central Italy
International buyers continue to show a strong preference for Central Italy, where they account for 52% of all purchases. A significant portion of these buyers originate from other European countries (59%) and North America. In contrast, other regions of Italy are predominantly favored by domestic buyers, who make up 72% in the North and 59% in the South and Islands.
Italy’s Most Expensive Locations
North-West
Beyond Milan, the Lombardy Lakes region remains a strong draw for the luxury segment. Lake Maggiore and Lake Orta have seen top sales reaching 8,400 euros per square meter, particularly for lakeside villas and penthouses, often attracting international clientele.
In Valle d’Aosta, Courmayeur continues its growth trend in the premium segment, with prices up to 20,000 euros per square meter, valued for its exclusivity, alpine lifestyle, and year-round appeal.
Liguria’s Santa Margherita Ligure and Portofino are established high-end markets, with luxury properties reaching 25,000 euros per square meter in 2025. These properties, primarily second homes (80%), are sought after for their sea views, spacious terraces, and high-quality finishes.
North-East
In Veneto, Venice leads with values of 20,000 euros per square meter for properties in its historic center. The city exhibits a perfect balance between national and international buyers and a high percentage of investment and second home purchases (both 40%).
Cortina d’Ampezzo maintains high valuations, with prices reaching up to 24,000 euros per square meter.
In Trentino-Alto Adige, alpine markets like Brunico, Alta Badia, and Alta Val Pusteria attract premium buyers, with peaks of 15,000 euros per square meter.
Lake Garda, specifically Bardolino and Peschiera del Garda, surpasses the top prices of the North-West lakes, reaching 10,000 euros per square meter.
Central Italy
Rome’s peak prices reach 12,000 euros per square meter, with demand primarily for newly renovated properties featuring terraces, energy efficiency, and parking availability.
Tuscany stands out as particularly attractive for second homes and tourist investments. The Tuscan Hills and Chianti region record top prices up to 15,000 euros per square meter.
The Tuscan coast also impresses, with Elba Island showing prices up to 10,000 euros per square meter. In Florence, demand remains selective but resilient, driven by foreign buyers (65%) seeking modern comforts and central micro-locations, with top prices at 10,000 euros per square meter.
South and Islands
The South and Italian Islands are highly attractive for luxury real estate due to their international tourist appeal, quality of life, and competitive prices compared to other European destinations.
In Sardinia, the Costa Smeralda, including Porto Cervo and Porto Rotondo, continues to represent the pinnacle of the Italian luxury market. Villas, penthouses, and beachfront properties achieve top prices of up to 47,000 euros per square meter, confirming strong international allure.
The Amalfi Coast, with Amalfi and Capri, solidifies its status as a top destination, with prices up to 10,000 euros per square meter and peaks of 12,000 euros per square meter for villas and penthouses offering sea views, privacy, and high-end finishes.
Naples primarily attracts Italian buyers (85%) for primary residences (9 out of 10 buyers), with average prices ranging from 5,800 to 7,000 euros per square meter, and reaching peaks of 10,000 euros per square meter.
Source: https://www.milanofinanza.it/news/immobiliare-di-lusso-milano-in-cima-alla-classifica-con-prezzi-fino-a-27-mila-euro-al-metro-quadro-202604081725284233
