Real estate market: Italy stands out in Europe for supply and international appeal

In Italy there are 14 properties for sale for every 1,000 inhabitants, compared with just 3 in Germany. Boom in foreign investors: sales to international buyers double (20%).

In 2025, the European real estate market has revealed a two-speed scenario: while supply shortages have continued to push up prices across much of the continent, Italy has stood out as a more balanced market, able to offer greater choice and attract global capital. This is according to the 2025 edition of Housing Insider – European Real Estate Insights, the report by REMAX Europe which analyses the dynamics of the main European real estate markets.

Italy stands out clearly from the main European markets in terms of the availability of properties. In 2025, our country recorded around 850,000 properties for sale, equivalent to 14 homes for every 1,000 inhabitants. This figure contrasts sharply with Germany, where the shortage of supply limits the market to just 3 properties for every 1,000 residents. This wide availability gives the Italian market greater stability and allows buyers to move within a less competitive environment than elsewhere in Europe, with a focus on quality and energy efficiency. "In Italy, buyers are expressing new housing needs, which is driving demand for high-quality properties, particularly renovated and highly energy-efficient ones," comments Dario Castiglia (pictured), CEO & Founder of REMAX Italia.

While Italy records a contained price increase of +2.7% (with apartments up by +3.4%), other European markets are showing much stronger pressure due to supply shortages and the lack of new developments:
- Portugal: prices up 17%, with the apartments segment soaring by +20%.
- Spain: growth of 10%, with peaks of +15% for apartments.
- Germany: a recovery of +4%.
- Turkey: moving against the trend with a drop of -9%, hit by very high interest rates.

2025 marks a record for international interest in Italian real estate assets. One home in five (20%) was bought by foreign buyers, a figure that has almost doubled compared with 11% in 2024. Italy competes with Spain (71,000 homes sold to foreigners in the first half of 2025) as a preferred destination for high-net-worth investments. In Italy, market stability and a competitive tax environment are driving investors not only toward major cities such as Rome and Milan, but increasingly toward prestigious holiday destinations.

According to the data analysed in the REMAX report, housing pressure is also shifting to the rental segment. In 2025, rents have risen significantly: Spain (+9%) and Italy (+7%) lead the increases, followed by Portugal (+6%) and Germany (+2%). The more modest growth in Germany is mainly due to regulatory constraints and to a market that has already reached the highest levels of affordability.