Italy's luxury housing outpaces global trends: How Milan and Rome are coping with economic uncertainty

Italy's Luxury Housing Outperforms Global Trends: How Milan and Rome Are Coping with Economic Uncertainty

In the first half of 2026, the Milan and Rome luxury real estate markets demonstrated high resilience, outpacing the global average for housing price growth. According to the Savills World Cities Prime Residential Index, the international prime housing market grew by an average of 0.6%, while key Italian cities performed significantly better.

Analysis of Milan and Rome indicators

In Milan, the cost of luxury housing increased by 1.5%, reaching an average of 16,500 euros per square meter. This places Italy's economic capital ahead of Lisbon (€14,600/sq.m), Madrid (€11,700/sq.m) and Barcelona (€9,600/sq.m), although it still trails Paris (€19,000/sq.m), London (€18,200/sq.m) and Geneva (€26,300/sq.m). Rental rates in Milan increased by 2.0% to €9.83 per square meter per week.

Rome showed more moderate price dynamics with an increase of 0.2%, setting an average price of €15,100 per square meter. In absolute figures, the Italian capital outpaced such major European centers as Berlin (€11,200/sq. m) and Amsterdam (€10,900/sq. m). Rents in Rome increased by 1.8% to €9.59 per square meter per week.

A particular surge in activity was recorded in the real estate segment over €3 million. In the first quarter, the number of such transactions increased by 15% in Milan and by a record 80% in Rome.

Comparison with European markets

Italian metropolises occupy a stable position in the middle group of leaders in Southern Europe. With prices rising by 1.5% in Milan and 0.2% in Rome, they are ahead of declining markets such as Berlin (-4.4%) or London (-1.9%), but behind regional favourites Lisbon (+3.3%) and Madrid (+2.4%).

In terms of absolute price per premium square metre, Geneva remains the most expensive European market (€26,300), followed by Paris (€19,000) and London (€18,200). Milan (€16,500) and Rome (€15,100) firmly hold their positions at the top of the European ranking, leaving Madrid, Berlin and Barcelona behind.

The Main Driver and Forecast for the Second Half of the Year

Experts note that the main problem of the premium housing sector in Italy has become an acute shortage of supply. Buyer demand from local and foreign investors remains high, but the market is experiencing a shortage of unique, high-quality properties. Under these conditions, not only the prestige of the location, but also the uniqueness of the architectural project plays a key role in the assessment.

In the second half of 2026, moderate positive price growth is predicted for Milan and Rome in the range from 0% to 1.9%. Experts predict a similar range for Paris and Amsterdam, which confirms the stability of the Italian market in the context of global economic uncertainty.