European Real Estate Market 2025: Italy stands out for supply and international appeal

From the 2025 edition of Housing Insider – European Real Estate Insights — the annual report by REMAX Europe analyzing the dynamics of the main European real estate markets — Italy emerges as one of the most balanced markets. While limited supply continued to drive prices upward across much of Europe in 2025, Italy stands out for offering greater choice and attracting global capital.

The 2025 edition covers Austria, Bulgaria, the Czech Republic, Germany, Italy, Portugal, Romania, Slovakia, Slovenia, Spain and Turkey. The report combines proprietary insights from the REMAX network with market data from specialised external sources, including Casafari, VALUO, TÜİK and Endeksa, providing a comprehensive overview of key real estate dynamics across Europe.

Italy against the trend: greater supply and wider choice

Italy clearly differentiates itself from other major European markets in terms of property availability. In 2025, the country recorded approximately 850,000 properties on the market, equivalent to 14 homes per 1,000 inhabitants. This sharply contrasts with Germany, where limited supply constrains the market to just 3 properties per 1,000 residents. This broader availability contributes to greater market stability and allows buyers to operate in a less competitive environment compared to the rest of Europe, with increasing focus on quality and energy efficiency. “In Italy, buyers are expressing new housing needs, resulting in growing demand for high-quality properties, particularly renovated and energy-efficient homes,” comments Dario Castiglia, CEO & Founder of REMAX Italia.

Price trends: Italy’s moderate growth in a European comparison

While Italy records a contained price increase of +2.7% (with apartments at +3.4%), other European markets show significantly stronger pressure due to limited supply and a lack of new developments. In Portugal, prices rose by 17%, with the apartment segment surging by +20%; Spain saw a 10% increase, with peaks of +15% for apartments; Germany recorded a recovery of +4%, while Turkey moved against the trend with a decline of -9%, impacted by very high interest rates.

Foreign investors: Italy doubles its appeal

In 2025, international interest in Italian real estate reached record levels. One in five homes (20%) was purchased by foreign buyers, nearly doubling from 11% in 2024. Italy competes with Spain—where 71,000 homes were sold to international buyers in the first half of 2025—as a preferred destination for high-value real estate investment. In Italy, market stability and a competitive fiscal framework are driving investors not only towards major cities such as Rome and Milan, but increasingly towards prestigious leisure destinations.

Rental market: sustained upward pressure on rents

According to REMAX data, housing pressure is also reflected in the rental segment. In 2025, rents increased significantly across Europe: Spain (+9%) and Italy (+7%) lead the ranking, followed by Portugal (+6%) and Germany (+2%). The more moderate growth in Germany is largely due to regulatory constraints and a market that has already reached its affordability ceiling.