Tuscany is outpacing the rest of Italy in residential property sales, though Florence is moving in the opposite direction from nearly every other major Italian city. That is the picture painted by the 2026 Real Estate Report from the Agenzia delle Entrate, produced in collaboration with the ABI banking association, which tracks how the housing market performed throughout 2025.
Property transactions across Tuscany rose 9.4% last year compared to 2024, well above the national growth rate of 6.4%. The total economic value of those transactions also climbed, with regional turnover exceeding 10.1 billion euros, a 9% increase on the previous year. Together with Lazio, Liguria and Lombardy, Tuscany ranks among the regions with the highest average property prices in Italy, at around 196,800 euros per home.
Mortgages are fueling the boom
Much of the growth is being driven by mortgage lending. Purchases backed by a home loan jumped 22.6%, while the total capital lent out grew by 30.2%, the highest figure recorded anywhere in the country. The average mortgage taken out to buy a home in Tuscany reached 148,800 euros, translating to a starting monthly repayment of roughly 668 euros.
The report does flag a growing tension beneath those numbers. Despite some improvement in recent years, Tuscany still sits among the Italian regions with the lowest affordability index, meaning that for many people, actually getting onto the property ladder remains genuinely difficult.
Florence goes against the grain
The most striking finding in the report concerns Florence. While almost every major Italian city saw transaction volumes rise in 2025, the Tuscan capital recorded a 3.8% drop in sales. It stands alone among Italy’s principal cities in posting a decline, while places like Palermo, Turin and Rome all saw activity increase.
That slowdown, however, is specific to the city itself. Municipalities in the wider Florence province that are not the regional capital saw transactions grow by more than 10%, suggesting buyers are looking beyond the city limits. The province also stood out for another reason: homes sold there are the largest among all the major Italian provinces, with an average floor area of 114 square meters.
What it costs to buy or rent in Florence
Despite selling fewer homes, Florence remains one of the most expensive cities in Italy. The average value of a property in the city sits at 283,700 euros, with only Milan recording higher figures, where averages approach 440,000 euros.
Rents tell a similar story. In standard long term rental contracts, Florence commands average annual rents of 167 euros per square meter, placing it second only to Milan and above even Rome. The short term and transitional rental market is particularly active, a segment heavily used by students and temporary workers. On that measure, Florence actually leads the entire country, registering the highest market intensity index for transitional rental contracts of any Italian city.
Source: La Nazione
