After years of uncertainty driven by factors like the pandemic, global economic shifts, and political ambiguity, the real estate market is poised for a notably positive phase in 2025. This trend is supported by lower interest rates following the ECB’s cuts, which will boost property transactions by improving credit access.
Italy Leads the Way
Italy is set to be a leading player in this European recovery, according to the latest report from Scenari Immobiliari, an independent research institute. Its European Outlook 2025 predicts that Italy’s real estate revenue, after an estimated growth of 3.4% in 2024, will see a 5.7% increase next year—the highest in Europe.
Top Sectors: Residential, Tourism, and Logistics
Residential real estate will drive business, with a 6.6% growth in 2025 compared to the previous year. The strongest surge—8.1%—will occur in the second-home market in tourist areas.
Prices are also expected to rise. According to an analysis by Century 21 Italy, the Italian branch of the U.S. real estate giant, residential prices in major cities and tourist destinations will increase by 3% to 5%. An exception is Milan, where the market will stabilize or see slight declines after recent years of rapid growth.
The warehouse and logistics sector offers lucrative investment opportunities, driven by the expansion of e-commerce.
Tourism-related real estate is also expected to be highly dynamic, with luxury and eco-friendly properties gaining the most traction.
Tuscany Tops Italian Luxury Markets
In Italy, discussions of luxury often lead to Tuscany, where 32.8% of properties are valued at over one million euros, according to a report by idealista, a leading real estate tech platform.
Lucca province leads the way, with 9.7% of properties exceeding one million euros and 17% priced above three million.
Florence follows closely, with 7.8% and 12% in these respective categories.
Milan ranks third, with 7.7% of properties above one million euros and 6.9% over three million.
Cross-Functionality and Innovation
The keyword for 2025 in real estate is “cross-functionality.” Marco Tilesi, CEO of Century 21, explains, “The focus will be on mixed-use buildings that blend residential, commercial, and public spaces.
Urban regeneration projects and co-living solutions will gain momentum, driven by the growing emphasis on sustainability.” Innovation will continue to shape smart homes, featuring advanced connectivity and integrated technologies
that enhance quality of life and energy efficiency. Environmental regulations will become stricter, encouraging developers to design ecocertified buildings and prompting consumers to favor green solutions such as solar panels, energy efficiency, and sustainable materials.
Three Exclusive Properties in Tuscany
The Dream Real Estate highlights three prestigious listings that exemplify Tuscany’s unparalleled luxury real estate offerings.
Terrazza Michela is a magnificent apartment in a historic building overlooking Siena’s iconic Piazza del Campo, with views of the Duomo and Torre del Mangia. It features a panoramic living room, three spacious bedrooms, and a large terrace with breathtaking vistas of the city and surrounding hills.
In the heart of the Tuscan Maremma, between Manciano and Capalbio, Villa Petra offers a serene oasis on 16 hectares of land, including an organic olive grove and 13 hectares of woodland. The property boasts a pool, Mediterranean gardens, and outdoor living areas.
A loft complements the three-level villa, which houses a gym, wellness zone, billiard room, and technical areas in the basement; an open-plan living space, fully equipped kitchen, and winter garden on the ground floor; and master suites with additional living spaces on the top floor.
In Florence, Villa Da Vinci is a historic residence built in 1910 near Piazzale Michelangelo, featuring an exclusive 700-square-meter garden. Spanning four floors, it offers expansive common areas and numerous en-suite bedrooms.
