In a remarkable shift in Italy’s luxury real estate landscape, Florence is cementing its position as the country’s third most attractive market for high-net-worth individuals (HNWIs), trailing only behind the economic powerhouses of Milan and Rome. This insight comes from a comprehensive new study by LuxuryEstate.com, a premier property portal partnered with Immobiliare.it, released just days before the G7 Tourism Summit.
Market Leadership: Milan Maintains Dominance
The data reveals a clear hierarchy in Italy’s luxury property market:
- Milan leads with 17.3% of total luxury property demand
- Rome follows at 13.3%
- Florence captures 5.2% of the market
- Forte dei Marmi, a surprising contender, claims 4th place with 3%
“Italy offers diverse opportunities for luxury real estate investors,” explains Paolo Giabardo, CEO of LuxuryEstate.com. “While economic and political centers like Milan and Rome remain strong, we’re seeing increased interest in locations renowned for their historical significance and natural beauty, with excellent accessibility.”
Regional Powerhouses: Tuscany’s Rising Influence
The regional analysis reveals an interesting dynamic:
- Lombardy maintains its top position, driven by Milan’s strong performance
- Tuscany claims second place with 16% of luxury property searches
- Lazio follows at 10%, despite Rome’s individual market strength
- Sardinia (9%), Liguria (7%), and Veneto and Piedmont (tied at 6%) round out the top spots
Buyer Origins: A Domestic Focus
The study also tracked where these affluent buyers are coming from, revealing:
- Milan (20% of total searches)
- Rome (13.8%)
- Naples (7.5%)
- Turin (4.7%)
- Florence (3.9%)
Emerging markets include unexpected contenders like Jesi (1.8%), Ascoli (1.4%), and Padua (1.36%), suggesting a broadening of Italy’s luxury real estate landscape.
Investment Implications
This shifting landscape presents several key implications for investors:
- Florence’s rise indicates growing confidence in secondary luxury markets
- The strong showing of smaller cities suggests diversification opportunities
- Tuscany’s overall performance demonstrates the enduring appeal of lifestyle-driven property investments
Looking Ahead
As Italy’s luxury real estate market continues to evolve, Florence’s position as a top-tier investment destination appears secure. The city’s blend of cultural heritage, quality of life, and strong property fundamentals makes it an increasingly attractive alternative to traditional prime markets like Milan and Rome.
The emergence of unexpected contenders in the top 10 suggests Italy’s luxury real estate market is becoming more sophisticated and diverse, offering new opportunities for discerning investors seeking both returns and lifestyle benefits.