The luxury residential market will resume activity in 2026, with prices expected to grow faster than rents.

According to research by Savills, the global luxury residential market could experience stronger growth in 2026, with premium home values expected to increase faster than rents. After several years of slowdown, the sector is gradually recovering thanks to robust demand, limited supply, and renewed investor interest. In Italy, the situation continues to develop differently depending on the city, with Milan and Rome showing different trends, where local factors play a key role - the volume of new construction, the availability of quality properties and the attractiveness of the urban environment.

The global luxury housing market is returning to growth

After a relatively subdued 2025, when the average growth in prices for prime real estate in the world's largest cities was about 1.8%, a revival was observed in the second half of the year. For the first time since 2021, the rate of growth in housing prices exceeded the increase in rental rates. Experts attribute this to the gradual recovery of buyer and investor confidence, despite ongoing economic and geopolitical instability.

Leading cities: Asia and Southern Europe

The most noticeable growth is expected in a number of international metropolitan areas. Among the leaders are Seoul and Tokyo, where high international demand combines with a shortage of luxury properties. In Europe, Madrid and Lisbon retain their appeal thanks to more affordable prices and the interest of foreign investors. Cape Town also stands out, attracting buyers with a comfortable lifestyle and relatively moderate real estate costs.

According to forecasts, it is in these cities that premium housing prices may grow by more than 4% in 2026, which is significantly higher than the global average.

Europe and the USA: Cautious Scenario

In most European capitals, growth is expected to be moderate - less than 2% per year. A gradual recovery is observed in Paris and Athens, where limited supply supports the market. At the same time, London and Berlin are likely to maintain stable indicators without drastic changes.

In the USA, the situation is mixed. New York City is showing moderate growth, while Miami, Los Angeles, and San Francisco may see a price correction due to high property prices and more cautious buyer behavior. Chinese cities included in the index, on the contrary, continue to show price declines.

Italy: Cautious Stability

The Italian luxury housing market is also expected to show subdued growth in 2026. In Milan and Rome, prices are likely to increase by no more than 1.9%.

Milan: Slowdown in the Premium Segment

The luxury real estate market in Milan is experiencing a cooling period. A shortage of quality properties and a decrease in buyer activity have led to stabilization of prices. Part of the demand has shifted to the rental segment, especially from students and young professionals. However, the limited supply of housing continues to restrain the development of the market. A recovery in activity in 2026 is possible mainly due to the emergence of new, albeit small, residential projects.

Rome: a more active market thanks to the Jubilee

The situation in Rome looks more positive. Demand for housing in the central areas is supported, among other things, by the Jubilee 2025, which is contributing to active purchase and sale transactions. Properties priced at up to one million euros are selling quite quickly, and in the more expensive segment, demand still exceeds supply.

Rents are also rising, although the rental market is also limited by the lack of new housing. In the future, additional impetus to the premium segment may be given by new development projects and the growing interest of institutional investors, especially in the build-to-rent format.