After two years of growth, investment purchases cool slightly while maintaining historically strong levels

The Italian real estate market is showing signs of a subtle directional change in 2024-2025.

Following increases during 2022 and 2023, investment purchases now represent 19% of total transactions, a marginal decrease from 19.5% last year, according to analysis from the Research Department of Gruppo Tecnocasa based on transactions completed by agencies throughout Italy.

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Though minimal, this decline represents a cooling signal after two consecutive years of growth. From 2012 to 2022, investment purchases consistently ranged between 16% and 18%, making the current level—despite its decrease—still among the highest recorded between 2012-2024. Historical lows were reached during 2014-2015 and again between 2020-2021, largely due to pandemic effects.

Major Cities Continue Driving Investment Activity

Major metropolitan areas maintain their position as investment hotspots, with investment purchases reaching 28.1% of transactions—slightly down from 28.6% in 2023 but significantly above the national average. Naples leads the 2024 rankings with an impressive 38.9% of purchases made for investment purposes, followed by Palermo (36.0%), Verona (32.2%), Bari (30.5%), and Florence (30.3%). Milan and Bologna both exceed the 28% threshold, while Rome (21.5%) and Turin (21%) complete the rankings.

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Property Preferences Evolve as Investors Seek Larger Spaces

Two-room apartments remain investors’ preferred choice, accounting for 32.5% of investment purchases, followed by three-room units at 27.4%. Notably, 2024 has seen increased interest in larger properties (four rooms and above) and independent housing solutions, which grew from 13.2% to 13.8% of investment purchases—signaling renewed interest in more spacious and versatile properties.

Investor Profile: Mid-Career Professionals and Families Lead the Market

The typical investor age remains stable, with the 45-54 bracket being most active (27.7%), followed by 35-44 year-olds (22.6%) and 55-64 year-olds (21.8%). Couples and families dominate the investment market, representing 72.2% of investment buyers. Single investors have declined from 30.6% in 2023 to 27.8% in 2024, reversing the growth trend observed in previous years.

Foreign Investors and Financing Options Gain Ground

Foreign investment in Italian real estate continues to strengthen. While international investors represented only 4.1% of transactions in 2019, they now account for 9.5% in 2024, making a significant contribution to the investment segment.

Cash purchases remain dominant at 85.9% of investment transactions. However, mortgage financing has increased to 14.1%, showing recovery after the 2023 slowdown caused by rising interest rates.

Source: Analysis by Gruppo Tecnocasa, as reported by Idealista