Knight Frank’s newly released “The Wealth Report 2025” provides comprehensive insights into the global property landscape, with particular attention to luxury residential markets. Based on data from over 400 countries, the analysis reveals continued growth in prime property values, with luxury prices rising by an average of 3.6% in 2024, slightly higher than the 3.3% recorded in 2023.
Among the 100 locations tracked in Knight Frank’s Prime International Residential Index (PIRI 100), 77 markets registered positive annual price growth in 2024. Asian and Middle Eastern cities dominated the top rankings, with Seoul showing the strongest performance at 18.4% growth, followed by Manila at 17.9% and Dubai at 16.9%. Saudi Arabian cities also performed remarkably well, with Riyadh and Jeddah posting gains of 16% and 9.6% respectively, both securing positions in the top six markets globally.
Italian Luxury Residential Performance
Italy continues to cement its status as a prime destination for high-net-worth individuals, with the report indicating that 41,080 individuals in the country possess wealth exceeding $10 million. This represents approximately 1.8% of the global ultra-wealthy population, underscoring Italy’s enduring appeal for affluent investors and residents.
The luxury residential sector across Italy demonstrated robust growth throughout 2024, with several prime locations recording notable price increases:
- Portofino led the Italian markets with 7.1% growth, ranking 16th globally
- Lucca followed with 6.2%, securing the 20th position worldwide
- Florence achieved 5.2% growth, placing 30th
- Milan recorded 3.5%, ranking 50th
- Lake Como saw a more modest increase of 1.8%, ranking 58th
- Venice registered 1.5% growth, placing 61st
- Rome showed the most conservative growth at 0.9%, ranking 69th globally
Europe’s Luxury Hubs
Milan maintains its position as Italy’s financial and lifestyle center for luxury real estate. However, purchasing power in the city has slightly declined over the past decade, with $1 million now securing 52 square meters of prime residential space, compared to 54 square meters in 2014—representing a 4% reduction. Despite this marginal decline, Milan remains competitively priced relative to other European capitals, continuing to attract both domestic and international investors.
The European luxury property market grew by an average of 2.5% in 2024, signaling a return to pre-pandemic conditions. Supply has largely normalized to 2019 levels, while market dynamics have gradually shifted from a seller’s to a buyer’s market, influenced by moderating demand, increased borrowing costs, and improved property availability.
Southern European markets outperformed much of the continent, with Italian locations featuring prominently among the top performers. Lucca stood out with its 6.2% annual increase, while other Southern European destinations such as Corfu and Porto also posted strong growth of 8.9% and 6.8% respectively.
Eight of the ten fastest-growing European luxury markets are located in Italy, Spain, Portugal, and Greece—reflecting robust demand for lifestyle destinations characterized by rich history, cultural heritage, and natural beauty.
Contrary to the global pattern where resort destinations typically outperformed urban areas, European cities experienced stronger growth at 2.7%, surpassing both sun destinations (-0.1%) and Alpine resorts (2.2%) for the first time since 2020. This marks a significant shift in buyer preferences following the pandemic years.
The super-prime segment, consisting of properties valued above $10 million, experienced a slowdown in transaction volume, particularly in France and Switzerland, where many potential buyers opted to rent rather than purchase. Geneva proved an exception to this trend, recording 57 super-prime sales by September 2024, exceeding the previous year’s total of 54 transactions.
Outlook for Italy in 2025
Knight Frank projects continued resilience for Italy’s prime markets in 2025, supported by sustained international interest, a robust domestic market, and relatively competitive pricing compared to other European luxury destinations.
Tuscany and Liguria are expected to maintain strong momentum, while demand in Milan and Rome remains stable, driven by their enduring lifestyle appeal. Interest in Lake Como, Venice, and other heritage cities continues to grow, further bolstered by Italy’s favorable tax regime, which remains a key attraction for international buyers seeking both investment potential and quality of life.
Global Market Projections
Looking more broadly at regional performance and prospects:
- Europe is projected to maintain its 2.5% average growth, with cities continuing to regain strength
- The Middle East market remains dominated by Dubai, which is forecast to achieve up to 20% growth in 2025
- Asia-Pacific recorded 3.2% growth, led by Seoul and Tokyo
- The United States shows mixed performance across markets, with New York positioned for recovery in 2025
- Super-prime sales activity remains particularly strong in Dubai and Geneva, while France and Switzerland experience softer market conditions
As global economic conditions gradually stabilize and interest rates adjust, luxury property markets are expected to demonstrate continued resilience, with Italy well-positioned to benefit from its unique combination of lifestyle appeal, cultural richness, and investment potential.
Richard Tayar is the founder of Columbus International, an international real estate firm bridging markets between the United States and Italy, with focus on New York, Milan, Florence, and Miami.
