Luxury in Italy: "Foreign investors continue to see Italy as a safe and prestigious destination"

We discuss this with Gianmarco Bizzoni, Managing Director of Zampetti Immobili di Pregio.

Looking at the forecasts for 2025, leading analyses suggest another strong year for Italy’s luxury real estate market. But what’s driving this sustained growth?

Several key factors are at play, one of the most significant being rising international demand. Foreign investors continue to see Italy as a safe and prestigious destination for luxury property, drawn by its iconic locations and favourable tax incentives.

High-end real estate is also regarded as a stable asset, offering protection against inflation and financial market volatility—especially in historic cities and exclusive areas. Italy’s unique blend of history, culture, natural beauty, and top-tier services makes it particularly appealing to affluent buyers seeking prestigious residences.

At the same time, the supply of luxury properties remains limited, particularly in the most sought-after locations, naturally driving up the value of prime real estate. Urban regeneration and redevelopment projects further contribute to this upward trend.

Major cities such as Milan and Rome are experiencing a surge in new luxury residences and high-end renovations, making the market even more attractive.

With international buyers playing such a key role, how does their influence compare to domestic demand?

Foreign investors dominate Italy’s luxury property market, accounting for around 70% of buyers in the high-end segment, while Italian buyers make up just 30%. This highlights the significant impact international demand has on the sector.

Are there specific incentives to attract foreign capital?

Italy offers several tax advantages designed to appeal to high-net-worth individuals (HNWIs), including the non-domiciled tax regime and a flat tax, both of which have been instrumental in attracting entrepreneurs and foreign investors to the luxury property market.

Zampetti

High rental yields, rising value, and protection against inflation: is investing in high-end property always a smart financial choice?

Investing in luxury real estate can be a profitable financial decision, but several factors need to be considered. High rental yields are often found in cities with strong international demand, such as Milan, Rome, and Florence, as well as in exclusive tourist destinations like Lake Como and the Amalfi Coast. However, in less sought-after areas, returns may be lower.

Historically, luxury real estate has shown steady appreciation, particularly in locations with limited supply and high demand. That said, property values can be influenced by macroeconomic factors and fiscal policies. Luxury homes are often seen as a safe-haven asset, as their value tends to increase over time, protecting capital from monetary erosion. However, liquidity can be a challenge if a quick sale is needed.

It is not always a guaranteed profitable investment. Success depends on location, property quality, market trends, and local taxation. Additionally, maintenance and management costs can be significant, impacting overall profitability.

In short, investing in luxury real estate can be a stable and lucrative strategy, but it requires careful evaluation, considering location, market trends, and a long-term approach.

How do you become a leading brand in such a competitive market?

Establishing yourself as a reference brand in the real estate market—especially in a highly competitive sector like luxury real estate—requires a well-structured strategy and a distinct positioning. The key is to build a unique and recognisable identity.

A strong brand stands out through clear values and a well-defined position. It’s not just about selling properties—it’s about delivering an exclusive experience based on professionalism, discretion, and highly personalised service.

Networking is essential. Collaborating with architects, interior designers, family offices, private bankers, and luxury industry professionals provides access to an elite clientele and increases brand visibility. At Zampetti, service quality is everything. From understanding the client’s needs to managing negotiations, offering a tailor-made approach—characterised by discretion, attention to detail, and exclusive solutions—is crucial.

Another key asset is premium marketing and communication. An elegant website and a strong social media presence with high-value content are essential. Our clients are often invited to exclusive events, such as private cocktail receptions and property previews tailored to a select audience.

Last but certainly not least, trust is everything in this industry. Building a solid reputation through referrals, reviews, and a proven track record of high-profile sales is vital for strengthening the brand over time.

Zampetti

Would I be wrong to say that, in this market, Rome still lags behind Milan?

No, you wouldn’t be wrong. Milan is significantly ahead of Rome in the property market, particularly in the luxury real estate segment and international investments. As Italy’s financial and economic hub, it enjoys constant demand from investors, businesses, and foreign professionals. Rome, despite its unique historical charm, has a more fragmented and less dynamic market when it comes to international investment.

In recent years, Milan has undergone a major urban transformation, with the development of high-end districts like CityLife, Porta Nuova, and Bosco Verticale, setting new residential standards. Rome, on the other hand, boasts prestigious real estate but with less modern redevelopment and fewer large-scale property development projects.

Luxury properties in Milan retain stable and appreciating value, benefiting from a highly liquid market and continuous demand.

What does the typical buyer look like in 2025?

The typical property buyer in 2025 is increasingly international, tech-savvy, and selective.

• In the luxury segment: High-net-worth individuals (HNWIs), foreign investors, entrepreneurs, and professionals drawn to exclusive locations, stable returns, and favourable tax policies.
• In the residential market: Young professionals and families focused on sustainability, technology, and quality of life, prioritising properties with outdoor spaces and smart-home features.
• In the investment sector: Real estate funds and institutional investors, increasingly focused on regenerated assets that comply with ESG criteria and offer high energy efficiency.

Putting myself in the buyer’s shoes: are today’s luxury buyers more inclined towards modern, high-tech properties or classic, historic homes?

Luxury buyers today don’t lean entirely one way or the other—they seek a balance between innovation and historical prestige, depending on their lifestyle and investment goals.

• Who opts for modern, high-tech properties?
  International investors and young entrepreneurs prioritising comfort, smart technology, and sustainability. They prefer contemporary residences with ESG compliance, advanced home automation, wellness areas, and exclusive services such as concierge and 24/7 security. Their preferred locations include Milan (CityLife, Porta Nuova), Dubai, London, and New York.
• Who chooses historic, classic homes?
  HNWIs passionate about heritage and uniqueness, seeking period villas, noble palaces, or meticulously restored historic residences. They look for frescoed ceilings, ornate stuccoes, and bespoke interiors that blend timeless elegance with modern comfort. Their top locations include Rome, Florence, Paris, Lake Como, Tuscany, and the Amalfi Coast.

In 2025, the highest demand is for restored historic homes equipped with modern technology, as true luxury today lies in combining the charm of history with the practicality of innovation.

Zampetti

Smart home technology: are there innovations revolutionising the high-end residential experience?

Absolutely. Smart home technology is transforming luxury residences into fully intelligent spaces, enhancing comfort, security, and sustainability. The most groundbreaking innovations include advanced home automation and artificial intelligence, enabling total control over lighting, blinds, temperature, and security—either via voice command or remotely through an app. AI-powered systems learn user habits, automatically adjusting lighting, climate control, and energy consumption for optimal efficiency.

Voice assistants such as Alexa, Google Home, and Siri integrate seamlessly, allowing residents to manage their entire home with simple voice commands. On the ultra high-tech security front, biometric recognition is becoming standard, offering fingerprint access, facial recognition, or iris scanning. AI-powered surveillance systems use predictive analytics to detect suspicious movements and send real-time alerts. Smart reinforced doors feature advanced electronic locks that activate via smartphone or dynamic passcodes.

In terms of sustainability and energy efficiency, the focus is on zero-impact buildings, featuring self-regulating systems that minimise waste and energy consumption. Integrated solar panels and smart batteries store and optimise energy use, while advanced air and water purification systems eliminate pollutants, significantly improving living conditions.

In short, today’s high-end residences go beyond aesthetic luxury—they provide a fully personalised and interactive experience, blending technology, security, and sustainability.

The true added value lies in seamlessly integrating design and innovation without compromising comfort or lifestyle.

What were the standout features of the last dream home you sold?

The last dream home we sold was a prime example of a historic apartment in a period building, fully renovated with premium materials and state-of-the-art home automation. It featured expansive views over one of the city’s most sought-after parks, offering an unparalleled blend of classic elegance and modern convenience.

More broadly, what factors determine the value of a luxury property today?

The value of a luxury property today is shaped by a combination of key factors that go beyond mere size or location. The most significant include:

• Exclusive location – Prime city-centre addresses or prestigious districts, such as historic areas or neighbourhoods with a high quality of life (e.g., Brera and the Quadrilatero in Milan; Parioli and the Historic Centre in Rome).
• Panoramic views – Properties overlooking landmarks, the sea, mountains, or an iconic urban skyline command a premium.
• Proximity to premium services – Luxury boutiques, Michelin-starred restaurants, private clubs, international schools, and excellent transport links all contribute to a property’s value.
• Architectural features and unique design – Historic residences with original frescoes, noble palaces, or architecturally distinctive properties hold immense value, combining rarity with timeless appeal.

Ultimately, luxury real estate today is defined by a balance of location, exclusivity, and bespoke lifestyle experiences.

Zampetti

Beyond the classics: are there emerging Italian destinations gaining popularity among luxury real estate investors?

In addition to traditional luxury hotspots such as Milan, Rome, and Costa Smeralda, several emerging locations in Italy have recently begun attracting high-end property investors. Here are some of these rising destinations and the reasons behind their growing appeal:

• Sicily – Cities like Taormina and Cefalù are experiencing a tourism renaissance, significantly transforming the local property market. The rise of elite international tourism has driven up real estate prices, making these areas increasingly attractive to investors seeking high-end holiday homes or rental properties.

Zampetti

• Puglia – Coastal gems such as Polignano a Mare are becoming highly sought-after thanks to their stunning natural beauty and rich cultural heritage. Growing tourism interest has stimulated the local property market, offering investment opportunities in both private residences and high-end hospitality ventures.
• Mountain Resorts: The New Stars of the Dolomites – Take Arabba, for example. Nestled in the Dolomites, it is positioning itself as the "new Cortina," offering authenticity and a prime location within the Dolomiti Superski area. International investors are increasingly drawn to its tourism potential and expanding infrastructure.
• Charming Towns & Historic Villages – Cities such as Matera, Lecce, and Perugia are gaining popularity for their exceptional quality of life, lower property prices compared to major urban centres, and cultural richness. The rise of remote work and a growing preference for a slower, more refined lifestyle have fueled this trend, making these locations attractive for both residential and hospitality investments.
• Emerging neighbourhoods in major cities: Milan – Beyond traditionally prestigious districts, areas like NoLo (North of Loreto) are catching the eye of investors. With relatively accessible prices and strong appreciation potential, these neighbourhoods offer exciting opportunities in the luxury property market.
• Rome – Neighbourhoods such as San Lorenzo, Pigneto, and Garbatella are undergoing urban regeneration, making them increasingly appealing for investors seeking high-end properties with strong growth potential.