The Italian Real Estate Market in 2026: Growth in Transactions, Prices, and Investments

European real estate market consolidates growth in 2026: Italy is the second fastest growing market in Europe

According to the European Outlook 2027 report, presented at the 34th Scenari Immobiliari forum in Rapallo, the European real estate sector has finally overcome the effects of the pandemic period and is confidently moving towards a total turnover of 1,360 billion euros by 2027.

The study analyzes the dynamics of the five largest countries on the continent, where the total transaction volume will exceed 1,030 billion euros in 2026. Among the key European economies, Italy is demonstrating the most dynamic indicators, second only to Spain in terms of growth rates.

Acceleration was already recorded in the second quarter of the year:

• Transaction volume in the EU: reached €53 billion (+6% compared to last year).
• Investments in the EU: exceeded €100 billion (+3% year-on-year).

Despite international geopolitical tensions, which are slowing down the adoption of individual decisions, the overall recovery of the industry continues.

Growth driver - the Mediterranean

The southern region has become the center of attraction for capital in Europe. Spain is showing the most intensive growth, followed by Italy. While Germany and France retain their leadership in terms of scale and reliability, their growth rates are significantly more moderate.

Mario Breglia, President of Scenari Immobiliari: “The European real estate sector is once again demonstrating that its fundamentals are stronger than external economic turbulence. The symbol of our report is a ‘candle in the wind’. Geopolitical, financial and energy winds are strong, but they cannot extinguish it. On the contrary, real estate is strengthening its status as a reliable instrument for investment, capital protection and urban transformation.”

Italy Records: Turnover Growth and Capital Inflow

Italy has secured its status as the second most attractive major market in Europe. The country's market is projected to grow by 8.7% in 2026 and 9.8% in 2027.

The key to success is a favorable combination of turnover, transaction volume, and property value. However, analysts emphasize that this new stage of development will not be equally profitable for all properties. English: High-quality, energy-efficient assets in good locations that meet demographic, digital and logistical trends will win.

Residential sector: towards the 840,000 transaction mark

Residential sector continues to recover after the 2023 decline:

• Transaction volume: by 2027, the number of residential property purchases and sales in Italy should reach 840,000 (with an annual growth of 4-5%).
• Premium segment: Prime and Superprime classes, concentrated in Milan, Rome and key resort areas, play a special role.
• Price index: is growing both in megacities and in second-tier regional centers. The price index will rise from 110.8 (in 2025) to 121 (in 2027), showing an average growth of over 4% per year.

Historical record for investments in Italy

In the first half of the year, the volume of investments in real estate in Italy exceeded 7 billion euros, recording a new historical record (an increase of over 30% compared to the same period last year). The country entered the top 10 world destinations for international capital.

Dynamics by key sectors:

1. Logistics: a record turnover of 5.3 billion euros was recorded (+6% over the year). At the same time, construction and investment have begun to shift to the south of the country, where analysts see the greatest potential.
2. Hotel sector (Hospitality): rapid recovery thanks to an active influx of institutional investors from Italy and abroad. The main volumes are accounted for by Rome and the main tourist centers.
3. Office real estate (Terziario): moderate growth with a strong focus on demand for environmentally friendly Class A buildings with high energy efficiency.