The luxury real estate market in Italy remains an extremely active sector thanks to buyer demand, which has evolved with the pandemic. The luxury real estate market is strengthening in several countries across the world in particular, including the UK, Germany, Italy, Spain, Portugal, Greece and Dubai, according to the latest Berkshire Hathaway HomeServices MAGGI Properties survey and report. Let's have a closer look at how foreign property investment will continue to drive the luxury sector in Italy in 2022, according to the report.
The demand for luxury real estate in Italy
In Italy, the COVID-19 pandemic has radically impacted the real estate market, causing a shift in buyer demand with the luxury real estate sector coming out on top. Unlike other European countries, the real estate market in Italy is moving relatively slowly: although 45% of respondents noted a more dynamic momentum in the last twelve months, this figure remains well below the 57% average recorded in other countries.
Similarly, only a third (33%) of respondents in Italy said that residential property purchases had increased since the start of the pandemic - by far the lowest figure, compared to 55% across EMEA countries and 62% in Germany. The Italian real estate sector is not expected to accelerate, with 25 per cent of operators predicting a slowdown over the next year. According to respondents, the residential sector is particularly susceptible to external trends and forces, with nine out of ten, around 89% of the sample, believing that regulations and taxes will have a strong impact on trends in the coming months.
Overall, 69% of respondents felt that the Italian market has become more competitive over the course of 2021. This suggests that there is not a lack of demand, especially when it comes to luxury properties in Italy, rather the problem lies in the difficulty for potential buyers to find properties that meet their needs. Italian professionals also reported that the sector is driven more by supply, which could also indicate a lack of truly attractive properties for potential buyers.
Italy, a tax haven for rich foreigners
Marcus Benussi, Managing Partner & General Counsel of Berkshire Hathaway HomeServices MAGGI Properties adds: "Italy is a tax haven for high net worth individuals. The flat tax regime, in fact, is reserved for new residents who will be able to opt between an annual flat tax of 100,000 euros and an amount of 25,000 euros for each family member. This regime has a duration of 15 years, can be revoked at any time and is independent of the income produced abroad. In this case, gift and inheritance taxes are also excluded for all assets abroad. The Italian Revenue Agency has recently clarified that newly-resident HNWIs (high net worth individuals) may entrust Italian intermediaries with the administration and custody of their financial investments, including income from such deposits in the annual flat-rate tax. In addition, there are bonuses and benefits for renovation, thermal insulation and earthquake retrofitting."
The range of residential properties on offer, combined with the ease of obtaining an Investor Visa or Golden Visa - a visa, and related residence permit, valid for two years and renewable for a further three, designed for non-EU citizens who choose to invest in our country - make Italy an even more attractive destination for wealthy international operators.
Foreign investment in Italian luxury properties
As far as the luxury real estate sector in Italy is concerned, it mainly benefits from foreign investments, first and foremost from Russia and the United States, a trend that, according to the Real Estate Report, was initially expected to drive the sector during 2022. These data are also supported by the Mise1 study updated to 2021, which shows that those applying for the Investor Visa in Italy come from 20 different countries: the United States and Russia lead the list, representing 21.9% of the total, followed by the United Kingdom at 10.9%.
External events such as the current geopolitical events," comments Benussi, "can reshuffle the cards on the table, also impacting the real estate sector, which is strongly driven by foreign investment. In addition, monetary policies launched to counteract the effects of inflation - in particular interest rate increases - are bound to affect the sector and put some pressure on demand. However, the Italian luxury real estate market should be robust enough to overcome these challenges.
Luxury property for sale in Italy
On idealista, you can find a wide range of luxury villas and apartments for sale in Italy. Get ready to find the house of your dreams!
Where does Kyle Walker live? Discover his €12,000-a-week apartment in Milan
Kyle Walker, the well-known English defender, has recently moved to Milan to join AC Milan, leaving Manchester City after eight successful years. His new adventure in Italy has sparked the interest of the English tabloids and Italian fans, who are eager to find out how Walker is settling into life in the Italian city. But where does Kyle Walker live in Milan? According to the English press, the footballer is residing in the beautiful district of City Life. Let's find out more.
Castello Thomson: a rare opportunity to own a historic Lake Como castle for €9,995,000
Situated in the prestigious Carate Urio, Castello Thomson is a one-of-a-kind property that perfectly blends history with luxury. Originally built atop a 9th-century tower, this extraordinary estate has been transformed into a magnificent residence by the renowned Venetian architect Tobia Scarpa. For those seeking the ultimate in exclusivity, the property on the market for €9,995,000 and listed on idealista offers an unparalleled opportunity to own a historic castle overlooking the stunning Lak
Big spenders from abroad favour villas in Italy (especially on Lake Como or in Tuscany)
In some of Italy’s most exclusive areas, the majority of demand for luxury villas or apartments (with average prices exceeding one and a half million euros) comes from foreign buyers. This is revealed by a report from idealista/data, which also highlights that the top 10 most sought-after locations among wealthy buyers worldwide for single-family homes consist solely of towns in Tuscany or on Lake Como.
Luxury in Italy: "Foreign investors continue to see Italy as a safe and prestigious destination"
On the other side of the property market—closely linked to credit and its uncertainties—the luxury real estate sector continues to thrive, showing no signs of slowing down even this year. But why? What drives the dynamics of such a complex segment?
The buying process for luxury properties in Italy
Italy is renowned for its captivating landscapes, rich cultural heritage, and luxurious lifestyle. If you’re considering purchasing a luxury property in this stunning country, the process may seem daunting, but with the right knowledge and guidance, it can be a smooth and exciting journey. In this article, we will walk you through the essential steps of the buying process for luxury properties in Italy, from understanding the market to finalising the deal.
The most sought-after ski resorts in Italy for luxury real estate
The charm of the mountains and luxury ski resorts continues to attract the attention of international investors. According to the Ski Report 2025 by Berkshire Hathaway HomeServices, the stunning landscapes of Northern Italy are once again in the spotlight, having seen a significant rise in the value of luxury real estate in mountain resorts and lakeside areas, driven by steadily growing demand.
Exclusive modern villa with Lake Garda views in Torri del Benaco
Nestled in the scenic hills of Torri del Benaco, this extraordinary modern villa offers an unparalleled blend of luxury, comfort, and breathtaking views of Lake Garda. Priced at €3,000,000, this property stands out as a true masterpiece for those seeking refined living in one of Italy’s most enchanting regions.