Published on and written by Cyril Jarnias
Italy enters 2026 with a more solid real estate market than many of its European neighbors. Transactions are picking up again, prices are rising moderately, and, above all, the gaps between major cities are widening. For a foreign buyer or investor, understanding the differences between Milan, Rome, Florence, and Turin has become essential to avoid overpaying for a property… or missing a real opportunity.
Milan is the capital of high prices and major urban projects. Rome banks on the depth of its market. Florence stands out for its heritage scarcity. Turin is emerging as the “value” large city of the north, often offering rental yields higher than its neighbors.
Before diving into the city-by-city details, it is essential to keep the national order of magnitude in mind. In 2026, the average price of residential real estate in Italy is around €2,135/m², with a median price close to €1,855/m² and a median home price of approximately €167,000. On this basis, the four metropolitan areas studied all sit well above the average, but with very different amplitudes.
Comparative Overview of the Four Major Cities
The gap between these markets is immediately evident in the price per square meter data. Taking the average or median levels indicated by the main portals (Immobiliare.it, idealista) and the 2025–early 2026 aggregations, a fairly clear picture emerges.
Sales Price Overview
The first table compares the main price ranges by city: average price per square meter, typical ranges in the center and suburbs.
| City | Indicative Average/Median Price (€/m²) | Historic Center or Prime Areas (€/m²) | Suburbs or Affordable Neighborhoods (€/m²) |
|---|---|---|---|
| Milan | ≈ €5,000–5,700/m² (city average) | ≈ €10,900–11,300/m² (Centro Storico) | ≈ €3,000–3,500/m² (Baggio, Bisceglie…) |
| Rome | ≈ €3,600/m² (average) / €3,400/m² (median) | ≈ €8,500–8,700/m² (Centro Storico) | ≈ €1,900–2,800/m² (Lunghezza, Ostia…) |
| Florence | ≈ €4,500–4,600/m² (city average) | ≈ €5,700–10,000+ /m² (UNESCO Center, Lungarni, ultra-prime) | ≈ €3,100–3,900/m² (Firenze Sud, Isolotto…) |
| Turin | ≈ €2,050–2,200/m² (city average) | ≈ €3,800–4,100/m² (Centro) | ≈ €1,200–1,400/m² (Aurora, Barriera…) |
Based on this grid, a buyer immediately sees that Milan is more than double Turin’s price, Florence is close to Milan but with a smaller, more heritage-driven market, and Rome occupies a middle position, both more expensive than Turin and more affordable than Milan.
The differences are equally striking when comparing “typical” properties rather than theoretical prices per square meter.
Indicative Prices for Typical Homes
By translating these per-square-meter values to common sizes, the orders of magnitude become very concrete.
| City | Typical Studio “Center” | Typical 1-Bedroom “Center” | Typical 2-Bedroom “Center” |
|---|---|---|---|
| Milan | ≈ 50–60 m² at €10,000–11,000/m² → €500,000–650,000 | ≈ 70–80 m² → €700,000–900,000 | > €1M in the most sought-after neighborhoods |
| Rome | ≈ 50–70 m² at €5,000–7,000/m² → €350,000–500,000 | ≈ 70–90 m² → €500,000–800,000 | €800,000–1.2M+ for 90–120 m² |
| Florence | ≈ 50–70 m² at €6,000–10,000/m² (monument views) → €300,000–700,000 | ≈ 70–90 m² → €500,000–900,000 depending on location | €1M and above for iconic addresses |
| Turin | ≈ 50–70 m² at €3,800–4,100/m² (Centro) → €200,000–280,000 | ≈ 80–90 m² → €300,000–360,000 | ≈ €400,000–550,000 outside luxury segment |
These ranges are still orders of magnitude, but they clearly illustrate the hierarchy: for a comparable product, Milan costs about twice as much as Turin, Florence approaches Milanese levels in the ultra-prime segments, and Rome sits in a broader, more diversified middle ground.
Milan: The Capital of Prices and Major Projects
Milan remains in 2026 the most expensive and dynamic market in Italy. Average prices hover around €5,000–5,700/m², with the historic center regularly exceeding €11,000/m² and the luxury segment where values can climb to €18,000–23,000/m² for the best assets.
Collected data indicates that Milanese prices rose by approximately 6.9% year-on-year approaching 2026, driven by an explosive combination: the arrival of the Winter Olympics, major urban redevelopment projects (CityLife, Porta Nuova, Scali ferroviari, MIND…), strong demand from international professionals and wealthy investors attracted by the tax regime for new residents.
Price Gaps Between Milanese Neighborhoods
One of the most striking features of the Milan market is the extreme polarization between the hyper-center and the outer ring. Historically prestigious neighborhoods – Centro Storico, Duomo, Brera, Quadrilatero della Moda – show per-square-meter values several times higher than those of the first ring.
| Milan Area | Indicative Sales Price (€/m²) |
|---|---|
| Centro Storico (Duomo, San Babila…) | ≈ €10,900–11,300/m² (average) |
| Brera – Montenapoleone | ≈ €8,500–10,000/m² (up to €18,500/m² in ultra-prime) |
| Porta Nuova – Moscova – Garibaldi | ≈ €8,000–10,000/m² |
| Navigli – Tortona | ≈ €5,500–6,500/m² |
| Città Studi | ≈ €4,500–5,500/m² |
| NoLo (North of Loreto) | ≈ €3,500–4,500/m² |
| Corvetto, Bisceglie-Baggio-Olmi | ≈ €3,000–3,100/m² |
| Forlanini | ≈ €3,800–3,900/m² |
We see that the most affordable areas like Baggio, Bisceglie or certain parts of Corvetto are around €3,000/m², almost three times less than the historic center, which itself is five times above the national average. These peripheral areas are at the heart of several urban renewal operations (e.g., Seimilano in Bisceglie or affordable housing programs supported by the municipality).
Rental Market in Milan: High Rents, Compressed Yields
The other direct consequence of these price levels is the compression of gross rental yields in central areas. In the heart of Milan, residential yields are often between 3% and 5%, penalized by very high entry prices despite robust rental demand.
Market rents illustrate this tension.
| Segment/Location in Milan | Average Monthly Rent | Indicative Rent (€/m²/month) |
|---|---|---|
| Studio historic center (Duomo, Brera…) | €1,500–2,200 | ≈ €30–33/m² |
| Studio emerging central areas (Porta Nuova…) | €1,600–2,300 | ≈ €28–32/m² |
| Studio Città Studi / NoLo | €1,200–1,600 | ≈ €20–25/m² |
| Studio periphery (Lambrate, Affori, Bisceglie…) | €1,000–1,500 | ≈ €15–20/m² |
| Studios/mini-apartments in satellite towns | €500–900 | ≈ €10–15/m² |
On average, portals report an asking rent around €22–23/m²/month within the municipality, peaking above €31/m² in the Centro. Rents therefore remain high, but the explosion in purchase values mechanically limits the gross yield. This is one reason why investors seeking yield are increasingly turning to secondary cities… including Turin.
2026 Trends: Moderate Growth, Major Works and Redevelopment
For 2026, forecasts indicate a price increase of about 3.5% in Milan, with neighborhoods with high growth potential such as Precotto-Turro, Bicocca-Niguarda, Viale Certosa-Cascina Merlata, or Corvetto-Rogoredo. These areas combine an still affordable entry point, a clear improvement in transport (extension of the M4 line, projects around rail yards) and strong demand from young professionals and students.
Prices have increased by 15 to 25% in gentrifying fringes according to data from the last two years.
Rome: A Vast, Contrasted, and Still Relatively Accessible Market
Rome in 2026 shows prices significantly lower than Milan, but with a non-negligible upward dynamic. Cross-referenced data from Immobiliare.it/idealista gives the capital average values close to €3,600/m² and a median price around €3,400/m², with a recent annual increase of around 6%.
In practice, transactions often close between €3,350 and €3,650/m² for standard apartments, positioning Rome about 30 to 40% below Milanese levels for a comparable product, while remaining well above the national average.
City-Wide: Wide Gap Between Historic Center and Suburbs
The capital offers a particularly wide price range. A June 2026 map shows values from €1,929/m² in the most peripheral areas up to €8,740/m² in the heart of the Centro Storico.
| Rome Sector | Indicative Sales Price (€/m²) |
|---|---|
| Centro Storico (most expensive areas) | ≈ €8,500–8,700/m² (average), much higher for trophy assets |
| Bourgeois neighborhoods (Prati, Parioli, Aventino, Nomentano) | ≈ €5,500–6,700/m² |
| Intermediate areas (Trieste, Salario, Bologna) | ≈ €5,500–6,000/m² |
| Good residential neighborhoods (Monteverde, EUR, Fleming) | ≈ €4,000–4,800/m² |
| Popular/emerging neighborhoods (Lunghezza, Castelverde, eastern suburbs) | ≈ €1,800–2,000/m² |
| Other affordable areas (Labaro, Casalotti, Tor Vergata, Lido di Ostia) | ≈ €1,900–2,800/m² |
The price differences are reflected in the cost of a typical apartment: a studio of 50–70 m² in the center often trades between €350,000 and €500,000, while an equivalent property in the outer ring is rather between €150,000 and €250,000. For two-bedrooms, the range goes from €800,000–1.2M in the historic heart to €300,000–600,000 in the suburbs.
Price Level and Typical Transaction
June 2026 data indicates a median apartment price in Rome around €295,000, for an average price closer to €365,000. In practice, most standard apartments fall within a band of €275,000 to €390,000, with high sensitivity to neighborhood, building condition, the presence of an elevator or balcony, and whether the property is already habitable or requires work.
The recommended overall budget for a foreigner targeting a €300,000 property, including notary fees, taxes, agency commission, and refreshment costs, i.e., 7 to 10% more than the net price.
Roman Rental Market: High Tension in the Center, Decent Yields
On the rental side, the province of Rome at the start of 2026 shows average rents of about €17/m²/month, peaking at over €18/m² within the municipality and above €27/m² in the Centro Storico.
| Rental Indicators in Rome (March–June 2026) | Value |
|---|---|
| Average rent province (March 2026) | ≈ €17.06/m²/month (+6.56% year-on-year) |
| Average rent municipality of Rome | ≈ €18.33/m²/month |
| Average rent Centro Storico | ≈ €27–27.5/m²/month |
| Minimum rent Lunghezza/Castelverde areas | ≈ €11/m²/month |
This tension is fueled by a double engine: tourism, which supports values in the center and “postcard” neighborhoods, and classic residential demand, duly boosted by the return to the rental market of homes previously used for short-term rentals.
For a studio in the center of Rome, rents are generally between €1,200 and €1,600/month, barely less than in Milan, but with a much lower purchase price. Thus, Milan shows compressed yields, while Rome offers more favorable price/rent couples, especially in intermediate or emerging neighborhoods, allowing for more comfortable gross yields.
Price Trends and Outlook
Figures for 2025–early 2026 show an increase of about 6–7% in Roman prices, a two-year record, with a peak of €3,759/m² in March 2026. Projections, however, point to more moderate increases ahead, around 2 to 4% per year, in a market structured by:
– demand supported by tourism, the diplomatic presence and the city’s administrative role,
– urban redevelopment projects in certain neighborhoods,
– and supply constraints in historic areas.
For the foreign investor, Rome appears in 2026 as an interesting compromise: more expensive than Turin but still offering potential, less elitist than Milan while remaining a globally liquid real estate capital.
Florence: Heritage Scarcity and Prestige Value Inflation
Florence, despite its smaller size, is almost on par with Milan in terms of tension in certain segments. In 2026, average prices hover around €4,500–4,600/m², but data shows that it is in the UNESCO areas of the historic center and along the Lungarni that values truly soar.
Portals report prices exceeding €5,700/m² in the Centro Storico, while renovated high-end properties easily cross the €10,000/m² mark. In ultra-prime sectors – direct views of the Duomo, Ponte Vecchio, or the Arno – advertised values even climb to €14,000/m² for turnkey properties of international standard.
Upward Pressure Fueled by Tourism and International Clientele
Florence saw its prices gain nearly 5% year-on-year by April 2026, with cumulative increases since 2019 exceeding 15–18% in the prime segment. In recent times, real estate research firms converge on an annual increase of 4–7% in the Tuscan capital, well above the national average.
This dynamic rests on several pillars:
Supply is structurally limited in the UNESCO-listed center, where conservation rules block large new projects. Tourist demand is record-breaking with over 10 million overnight stays in 2024, supporting rents, especially short-term. Foreign buyers are very active: Americans represent nearly 29% of international buyers in Tuscany, and international investors account for about 40% of transactions in the Florentine prime segment. Finally, stabilized interest rates and tax incentives (new resident regime, renovation bonus) encourage wealthy households to lock capital into Tuscan real estate.
A Historic Center Under High Tension
In the historic heart, average prices already exceeded €4,500/m² in 2025, up nearly 32% over two years. Apartments with direct views of iconic monuments (Duomo, Ponte Vecchio) regularly sell above €7,000/m², and much more in the ultra-prime segment.
| Florence Area | Indicative Sales Price (€/m²) |
|---|---|
| Centro Storico (UNESCO) | ≈ €5,700–6,000/m² (average) |
| Ultra-prime renovated (Lungarni, monument views) | ≈ €8,500–14,000/m² |
| Piazzale Michelangelo | > €7,000/m² |
| San Niccolò, Marignolle | ≈ €6,900/m² |
| Florence hills | ≈ €8,000/m² (high-end average) |
| More affordable neighborhoods (Firenze Sud, Isolotto) | ≈ €3,100–3,900/m² |
This pattern directly translates into residents’ ability to find housing: according to some analyses, a Florentine would spend on average more than 75% of their income on housing in the center, compared to about 72% two years earlier. Symmetrically, the city ranks among the most expensive in Italy for homeownership and rental access, behind Rome and Venice, once local incomes are taken into account.
A Rental Market Boosted by Short-Term Rentals, But Regulated
Florence is also among the champions of gross rental yield on tourist rentals. In the historic center, theoretical yields on short-term rentals average more than 7% gross, with occupancy rates close to 90% in some years. Average daily rents are around €180–214 per night for seasonal rentals, a level higher than many comparable European cities.
Faced with real estate tension, the municipality has frozen new tourist rentals within the UNESCO perimeter, progressively banned subdivided micro-apartments smaller than 28 m² for short stays, and increased tourist taxes, in order to limit the touristification of the center and free up housing for residents.
Despite this regulatory turn, projections for 2026 remain frankly bullish on sales prices, with expectations of +6 to +7% in the prime segment, and 3 to 5% in emerging neighborhoods. Analysts believe that the structural scarcity of central supply, the city’s international appeal, and high-end capital flows are sufficient to absorb these new constraints.
Florence: A “Boutique” Market for Patient Capital
For a high-income investor or foreign resident, Florence positions itself as a “boutique” market: limited volumes, high entry tickets as soon as you target the center or the hills, but a strong probability of value preservation over time. Over a 5 to 10-year horizon, cumulative appreciation forecasts for Florentine luxury properties range between 15 and 25%, in an environment where the risk of sharp corrections is considered low due to the scarcity of properties and the depth of international demand.
Turin: The Northern Big City Where Numbers Still “Hold”
Compared to Milan, Rome, and Florence, Turin presents a radically different profile. In 2026, the Piedmontese city shows an average price around €2,050–2,200/m², with the center around €3,800–4,100/m² and popular neighborhoods like Aurora or Barriera di Milano around €1,200–1,400/m².
In other words, for the same budget, a buyer can acquire in Turin a property of significantly larger size than what they would get in Milan or Florence. National comparisons also show that Turin is, among the major northern cities, the one offering the best price/quality of life compromise.
Price Structure in Turin
Data from 2024–early 2026 shows a market in moderate recovery: +6% approximately between end of 2023 and end of 2024, with a peak around €2,060/m² before stabilizing close to €2,200/m² in March 2026 (+7.5% year-on-year). However, this remains about 15% below the historic 2012 peak (€2,318/m²), contrasting with other cities already well above their former records.
| Turin Sector | Indicative Price (€/m²) – Sales |
|---|---|
| City average (March 2026) | ≈ €2,200/m² |
| Province of Turin | ≈ €1,690/m² |
| Centro storico (half-year 2026) | ≈ €4,000–4,100/m² |
| Crocetta, San Secondo | ≈ €3,000–3,100/m² |
| San Salvario | ≈ €2,700–2,900/m² |
| Cavoretto, Gran Madre | ≈ €3,200/m² |
| Colle della Maddalena, Superga | ≈ €2,440/m² |
| Borgo San Paolo, Cenisia | ≈ €2,400/m² |
| Lingotto, Nizza Millefonti | ≈ €2,040/m² (strongly rising) |
| Santa Rita, Mirafiori Nord | ≈ €2,050/m² |
| Aurora, Barriera di Milano, Rebaudengo | ≈ €1,240–1,400/m² |
In 80% of transactions, prices per square meter vary between €1,200 and €3,300/m², with a “typical” 80 m² apartment valued around €170,000. A large proportion of the stock thus sits in a range €110,000–320,000, and the entry level (55–70 m² in popular areas) starts from €85,000–125,000.
Rental Market: Often Yields Above 6%, Peaks at 8–10%
It is in the field of rental yield that Turin truly stands out. The combination of reasonable purchase prices and rents supported by a massive university fabric (over 100,000 students), a solid tertiary economy, and growing demand for residential properties yields yield levels hard to find in Milan or Florence.
| Rental Indicators in Turin (2026) | Indicative Value |
|---|---|
| Average rent city (all neighborhoods) | ≈ €12.5/m²/month |
| Average rent Center | ≈ €16–16.2/m²/month |
| Rent Aurora/Barriera/Rebaudengo | ≈ €8.7–10.8/m²/month |
| Rent Crocetta/San Secondo | ≈ €13/m²/month |
| Rent Lingotto/Nizza | ≈ €10.7–11/m²/month |
| Average studio (January 2026) | ≈ €580/month |
| Studio center (typical 50 m²) | ≈ €700–800/month |
| Studio northern periphery (Aurora…) | ≈ €440–550/month |
Yield calculations show:
The average gross yield in the city center is about 4.1%.
The price-to-rent ratio is around 14–15 years in Turin, well below the classic overvaluation threshold (18–20 years), corroborating the idea of a market still well valued, without major speculative excesses.
Outlook: Moderate Growth but Revaluation Potential
Scenarios established for Turin over a 5–10 year horizon anticipate:
Probable cumulative price increase over five years in central scenarios.
Even cautious assumptions remain positive (+8–10% over five years), notably because the city starts from levels still below its former highs, while benefiting from favorable structural factors: metro projects (Line 2), brownfield redevelopment, the rise of student housing and managed residences.
For an investor, Turin therefore still allows targeting an overall return (rent + latent capital gain) of around 30–40% over five years on a good asset, where some Milanese areas offer practically only a “safe-deposit box” role for wealth preservation.
Acquisition Costs and Taxation: A Common Framework to Understand
Beyond price differences, buying a property in Milan, Rome, Florence, or Turin means operating within the same national tax framework. Acquisition costs and recurrent taxation (IMU) weigh significantly on yield calculations and must be integrated from the start.
Transfer Taxes and VAT on Purchase
Italy does not have a single transfer tax rate. The regime depends mainly on:
– the type of seller (private individual or developer),
– whether it is a primary residence (“prima casa”) or a secondary residence,
– the property category (standard or luxury).
In 2026, the main lines are as follows:
– Purchase from a private individual: registration tax of 9% on the cadastral value (often 30 to 60% below the market price), reduced to 2% for the “prima casa”,
– New purchase from a developer: VAT of 10% (4% for a primary residence, 22% for a luxury property),
– No specific surtax for foreigners: a non-resident pays the same rates but, in practice, their property is almost always classified as a secondary residence, unless they become an Italian tax resident and meet the “prima casa” conditions.
For a €300,000 apartment purchased in Rome as a primary residence from a private individual, the 2% tax applies to the cadastral value (generally 40 to 70% of the price) and not to the transaction price of €300,000, thus reducing the tax burden.
IMU: The Locally Variable Property Tax
The main Italian property tax, the IMU, continues in 2026 to target secondary residences, luxury properties, commercial premises, and land. Primary residences not classified in luxury categories (A/1, A/8, A/9) benefit from a full exemption.
Key parameters:
– national base rate for secondary residences: 8.6‰, adjustable by municipalities up to 10.6‰ (or even 11.4‰ in certain specific cases),
– tax base: cadastral value increased by 5%, then multiplied by a coefficient (160 for most homes),
– significant municipal leeway in 2026, with a new system of standardized grids replacing the old mosaic of over 250,000 rate combinations.
In tourist cities like Rome or Florence, municipalities can modulate taxation based on the property profile (vacant home, vacation home, regulated rental, uninhabitable building). They have the option to reduce IMU by up to 50% for certain secondary residences that are little used or classified as ‘vacation homes’, but the methods vary locally.
For a foreigner buying a second home in Milan or Florence, one must therefore count on paying IMU as a secondary residence, with a rate set by the municipality and reassessed each year. In Turin, the same rules apply, but the lower cadastral value mechanically reduces the burden, further contributing to the city’s appeal for investors seeking net yield.
Renovation Bonuses and Energy Efficiency
Renovation projects – frequent in historic centers – benefit in 2026 from a still favorable tax environment:
– 50% deduction of improvement expenses (renovation, energy efficiency) for the primary residence, spread over 10 years,
– 36% deduction for other properties (secondary residences, investments), with expense ceilings of €96,000 per unit for 2025–2027,
– specific extensions for furniture related to the work (furniture bonus of 50% up to €5,000 for 2026).
This tax architecture plays particularly in city-center markets like Rome and Florence, where many old buildings require upgrades. In Turin or Milan, it also allows investors to improve the energy performance of properties intended for student or professional rental, which is becoming a determining criterion for tenants and a value lever in the medium term.
Which Market for Which Buyer Profile in 2026?
In 2026, the Italian market is clearly “two-speed”: the prime segment is very supported by an affluent international and local clientele, the mass market segment is more differentiated according to property quality and location. Milan, Rome, Florence, and Turin perfectly illustrate this segmentation.
Analysis of investment opportunities by city: Milan, Rome, Florence, and Turin.
Priority on economic exposure and scarcity. Modest rental yield. Position yourself in transforming neighborhoods like Precotto, Certosa or Bovisa.
From luxury in the Centro Storico to popular neighborhoods undergoing redevelopment. Decent yields and significant capital appreciation potential. Deep market reassuring for the long term.
Ideal for patient capital prioritizing security and the ‘brand’ effect. High yields possible on short-term rentals, but need to adapt operating models in light of new regulations.
Gross yields of 6-8% with a reasonable entry ticket. Very favorable quality of life/price ratio. Accessible to middle-income households over a large part of the housing stock.
In a national context where real estate seems generally close to its “fair value” – sometimes 10 to 20% above fundamentals in the best neighborhoods of Milan, Rome, or Florence – the selection of precise locations, modern typologies, and energy-efficient buildings becomes the main performance factor.
In 2026, Turin offers a rare balance between moderate purchase prices, attractive rents, manageable taxation, and sustainable growth for investors willing to step off the ultra-tourist trail. Milan, Rome, and Florence remain prestigious and liquid international showcases, but with high costs, compressed yields, and increasing regulation.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
