Italy Luxury Residential Real Estate Market Size (2024 - 2029)

The luxury residential real estate market in Italy is experiencing a recovery and growth trajectory, with an increasing market size driven by a resurgence in demand for high-end homes. Despite the initial impact of COVID-19, which led to a temporary decline in house prices, the market has rebounded, with sales returning to pre-pandemic levels. The shift in consumer preferences towards luxury living spaces has been notable, and residential real estate remains a significant component of Italy's overall real estate market. Additionally, major urban regeneration projects and renewed investment interest in cities like Rome are expected to further enhance the market's expansion.

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Market Size of Italy Luxury Residential Real Estate Industry

Italy Luxury Residential Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.00 %
Market Concentration Medium

Major Players

Italy Luxury Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Italy Luxury Residential Real Estate Market Analysis

During the time frame of the forecast, the luxury residential real estate market in Italy is expected to register a CAGR of more than 5%.

  • COVID-19's impact was severe on the market. The house prices in the Mediterranean country decreased by 2.6 percent, with a potential decrease of up to 4 percent. Despite the pandemic crisis, luxury residential real estate in the country currently, is in the recovery phase, as sales in the country quickly bounced back to pre-pandemic levels.
  • Italian magazines did a study that shows the demand for high-end homes has gone up by almost 50% since 2019. One of COVID-19's numerous legacies appeared to be upscale housing that fulfilled contemporary living requirements. In the last couple of years, the public's buying interests and choices have changed, and there has been a trend toward putting more emphasis on luxury living spaces.
  • Residential is the biggest part of Italy's real estate market, making up more than half of all sales in 2020. Most Italians live in homes they own, and houses or apartments are seen as important and safe investments, so it shouldn't be a surprise that the luxury residential market is quite active.

Q1 2022 marked the start of the biggest urban regeneration project in Italy. It will host over 50,000 people every day, including residents, city users, and visitors, which will boost the luxury residential real estate market in the region. Also, Rome is back in the arena, and quarterly investment stood at 13% of the total, higher than 8% of the whole of 2021.

Italy Luxury Residential Real Estate Industry Segmentation

Luxury residential real estate is an area developed for people to live on and cannot be used for commercial or industrial purposes. It happens when someone buys land that is approved for residential use. This land then becomes real property and can be used to build many different kinds of homes, from houses to houseboats, and many different kinds of neighborhoods, from the poorest slum to the wealthiest suburban subdivision.

The Italian luxury residential real estate market is segmented by type (villas and landed houses, apartments, and condominiums) and by city (Rome, Venice, Milan, Florence, Naples, and other cities). The report offers market size and forecasts for the Italy Luxury Residential Real Estate Market in value (USD billion) for all the above segments.

By Type
Villas and Landed Houses
Apartments and Condominiums
By Cities
Rome
Venice
Milan
Naples
Florence
Other Cities
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Italy Luxury Residential Real Estate Market Size Summary

The luxury residential real estate market in Italy is poised for significant growth, driven by a combination of factors including low interest rates, high demand, and limited supply. Despite the initial setbacks caused by the COVID-19 pandemic, which led to a temporary decline in property prices, the market has shown resilience and is now in a recovery phase, with sales rebounding to pre-pandemic levels. The demand for high-end homes has surged, reflecting a shift in consumer preferences towards luxury living spaces that cater to modern lifestyle requirements. This sector is a major component of Italy's real estate landscape, with residential properties accounting for a substantial portion of sales. The market's activity is further bolstered by urban regeneration projects and the appeal of cities like Milan and Rome, which attract both domestic and international investors.

The Italian luxury residential real estate market is characterized by its competitive nature, with both local and international players vying for market share. Key industry participants include prominent real estate firms such as Christie's International Real Estate, Immobilinvest Real Estate, and Sotheby's International Realty, among others. The market is semi-consolidated, with increasing collaboration between domestic developers and international funds to enhance financial strength and management expertise. The high homeownership rate in Italy, coupled with a robust demand for condominiums and apartments, underscores the sector's vitality. Recent developments, such as the leasing deal for luxury apartments in Florence, highlight the ongoing investment and interest in high-end residential properties, ensuring the market's continued growth and dynamism.

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Italy Luxury Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Market Opportunities

    3. 1.3 Insights into Technological Innovation in the Luxary Residential Real Estate Sector

    4. 1.4 Government Regulations and Initiatives

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers/Consumers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Villas and Landed Houses

      2. 2.1.2 Apartments and Condominiums

    2. 2.2 By Cities

      1. 2.2.1 Rome

      2. 2.2.2 Venice

      3. 2.2.3 Milan

      4. 2.2.4 Naples

      5. 2.2.5 Florence

      6. 2.2.6 Other Cities

Italy Luxury Residential Real Estate Market Size FAQs

The Italy Luxury Residential Real Estate Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Christie's International Real Estate, Immobilinvest Real Estate, Sotheby's International Realty, Chianti Estates SRL and Carratelli Real Estate are the major companies operating in the Italy Luxury Residential Real Estate Market.

Italy Luxury Residential Real Estate Market Report Snapshots

Italy Luxury Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)