According to Il Sole 24 Ore on April 8, 2026, based on the Market Report Italia 2026, Italy’s luxury real estate market shows clear differences across the North, Center, and South of the country.
In Southern Italy and the islands, investors primarily drive high-end property purchases. However, in major cities such as Naples, the market remains predominantly domestic, with a clear majority of Italian buyers.
Central Italy stands out as the most attractive area for international investors, who account for approximately 52% of total demand. In this region, purchases of luxury second homes slightly exceed those of primary residences.
In Northern Italy, both Italian and foreign buyers show a stronger preference for primary residences, creating a market more focused on direct residential use rather than investment.
This scenario highlights how Italy’s 2026 luxury real estate market is highly segmented, with significantly different dynamics and buyer preferences across geographical areas.
A Growing Sector
These results reflect a broader growth trend in the market. As already anticipated at the end of 2025 by Scenari Immobiliari, the Italian real estate market entered 2026 on a positive trajectory.
Il Sole 24 Ore highlights this trend with a focus on the luxury segment, noting that growth has also been supported by international factors. Among these, a recent tax shift in the United Kingdom has encouraged an increasing number of foreign investors to turn their attention to the Italian market.
In this context, cities such as Milan stand out as particularly attractive hubs, confirming their status among the top destinations for high-end real estate investment. Furthermore, as reported by Il Sole 24 Ore on January 16, 2026, Milan has established itself as one of the preferred destinations for so-called “super-rich” individuals, recording numbers that are nearly comparable to those of cities such as Los Angeles and Paris.
What Happened in the United Kingdom?
Over the past year, the United Kingdom abolished the so-called Res Non-Dom tax regime, a system that for years attracted international investors and HNWIs (High Net Worth Individuals). This regime allowed foreign residents who were not domiciled in the UK to pay tax only on income brought into the country, rather than on their worldwide earnings. Its removal has had a significant impact. Many foreign investors have gradually reduced their interest in the UK market, which has consequently lost part of its appeal as a preferred destination.
As a result, these investor profiles have started exploring more tax-efficient alternatives, shifting toward more competitive jurisdictions. Among them, Italy stands out thanks to its Flat Tax regime, which has strengthened international interest in the country, particularly in the high-end real estate segment.
Northern Italy Driving Luxury Real Estate Between Cities and Exclusive Destinations
As highlighted by Il Sole 24 Ore, in Northern Italy around one out of every two property transactions involves the purchase of a primary residence, with very similar shares between North-West (50%) and North-East (51%).
In this context, Milan remains the leading reference point for the high-end residential segment. Demand, driven by both Italian and international buyers, focuses mainly on penthouses and apartments located in the city’s central districts.
This strong attractiveness continues to support steady price growth. For renovated properties, average values range between €10,000 and €23,000 per square meter, confirming Milan’s position as one of the most dynamic and competitive luxury real estate markets in Italy.
Milan is the city with the highest prices among major urban centers in the luxury real estate market, with peaks reaching €27,000 per square meter, particularly in prestigious areas such as the Quadrilatero and Brera.
A Snapshot of Luxury Real Estate in Northern Italy
Beyond Milan, there are several other areas in Italy that are highly attractive to luxury real estate investors, particularly international buyers.
Luxury real estate in Northern Italy shows strong price performance across several prime destinations. In Aosta Valley, Courmayeur leads the high-end alpine market with values up to €20,000/sqm, while the northern lakes in Lombardy, including Lake Maggiore and Lake Orta, reach around €8,400/sqm for premium lakeside properties. Even higher prices can be found around Lake Garda (Veneto), particularly in sought-after locations like Bardolino and Peschiera del Garda, where values climb to €10,000 per square meter.
In Liguria, iconic locations such as Portofino and Santa Margherita Ligure can reach up to €25,000/sqm. Venice confirms its international appeal with values around €20,000/sqm. The Dolomites, notably Cortina d’Ampezzo, explored in more detail in a separate blog post, peaks at €24,000/sqm. In Trentino-Alto Adige, key markets also show strong demand.
A Smooth Buying Process Even for Non-Residents: Why Mortgage Brokerage Matters
Buyers earning income abroad who wish to purchase property in Northern Italy, across dynamic cities, scenic lakes, and prestigious alpine destinations, can rely on Top Italian Mortgage, a specialist in mortgage services for non-residents, foreign citizens, or Italians living abroad (AIRE).
Through a tailored approach, Top Italian Mortgage provides dedicated financial consultancy for individuals living or working outside Italy, simplifying access to mortgage financing and making the entire purchasing process faster, clearer, and stress-free.