Top 10 Cities in Italy to Invest in Real Estate in 2026
Italy 2026 City Scorecard (quick picks)
Italy, The table below uses a single consistent dataset, so you can compare cities apples-to-apples.
| City | Best-fit strategy in 2026 | Forecast Dec 2026 sale (โฌ/mยฒ) | Forecast Dec 2026 rent (โฌ/mยฒ/mo) |
|---|---|---|---|
| Milan | Core + premium rentals + student/young professionals | 5,697 | 23.7 |
| Rome | Core + long-let + โregulatedโ short-stay where compliant | 3,691 | 19.2 |
| Florence | Long-let pivot + boutique/regulated short-stay (watch rules) | 5,061 | 22.9 |
| Bologna | Student housing + long-let near transit/universities | 3,970 | 18.0 |
| Venice | Scarcity + premium long-let; short-stay only with strict compliance | 3,619 | 16.3 |
| Verona | Mid-market rentals + tourism-adjacent long-let | 2,986 | 13.0 |
| Turin | Value + long-let; strong rent-growth setup | 2,175 | 13.7 |
| Naples | Value-add + long-let; selective short-stay | 3,137 | 15.5 |
| Bari | Rent-growth play + affordability + long-let demand | 2,355 | 14.2 |
| Palermo | Value + tourism tailwinds; long-let/managed short-stay | 1,621 | 10.0 |
The Top 10 Italian Cities to Invest in Real Estate in 2026
1) Milan
Why itโs top-tier in 2026: Milan is Italyโs most liquid โinstitutional-feelingโ residential marketโwhere premium rentals, student demand, and professional tenants create durable occupancy.
What to buy (2026 plays)
- Rental apartments for professionals (small-to-mid units tend to rent fastest)
- Student & young-professional housing (where management quality becomes the differentiator)
- Value-add refurb (energy upgrades + layout optimization)
Catalysts & demand
- The Milano Cortina 2026 is a real catalyst for 2026 visibility (hospitality + short-stay demand spikes, plus infrastructure attention).
Neighborhood-style targets (high level)
Porta Nuova, Isola, CityLife, Navigli, NoLo (micro-market diligence required).
Risk to price in
Milan is expensiveโyour returns come from execution (tenant targeting + capex control), not โcheap entry.โ
2) Rome
Why Rome works in 2026: Massive, diversified demand (government, corporate, education, tourism) means you can build multiple strategiesโif you stay compliant.
What to buy (2026 plays)
- Long-term rentals in high-demand residential zones
- Selective โserviced apartmentโ concepts for business travel
- Renovation-led upgrades (historic stock is plentiful, but capex must be real)
Where investors win
You win Rome by choosing the right submarket (walkable demand + transit access) and operating professionally.
Risk to price in
Tourist-demand politics can change fast in European capitalsโmodel short-stay risk conservatively.
3) Florence
Why Florence is on the list: Itโs one of Italyโs most resilient demand centersโbut itโs also one of the most actively regulated.
What to buy (2026 plays)
- Long-term conversions (especially if city policies push housing back to residents)
- High-quality renovated units for professional tenants
- Boutique hospitality only where zoning/permissions clearly allow
Regulatory reality
Florence banned new short-term residential lets in its historic centre (policy intent: increase homes for locals).
It has also taken visible steps against โself check-in keyboxesโ used in holiday rentals as part of its overtourism actions.
SEO translation: Florence content that ranks should include compliance detailโbecause investor search intent includes โis it still legal?โ
4) Bologna
Why Bologna is a 2026 sleeper winner: University demand + strong regional economy + highly livable city fundamentals often support stable rental occupancy.
What to buy (2026 plays)
- Student-oriented rentals (studio/1-bed formats)
- Long-term rentals near transit and employment clusters
- Small multi-unit buildings where you can upgrade energy performance and unit layouts
Risk to price in
Student-heavy markets punish amateur managementโplan for turnover and maintenance.
5) Venice
Why Venice still makes sense (with caveats): Extreme scarcity and global tourism demand create pricing powerโbut regulation and operational friction are real.
What to buy (2026 plays)
- Premium long-let in high-demand residential micro-areas
- โLow-volume, high-qualityโ short-stay only if fully compliant (and resilient to rule changes)
Overtourism backdrop
Venice has expanded its policies, such as a day-tripper fee, to manage visitor pressureโsignaling that regulation can continue to tighten.
Risk to price in
Treat Venice as a compliance-first market.
6) Verona
Why Verona is investable in 2026: It combines tourism demand with a strong Northern Italy lifestyle/rental baseโoften at a lower entry cost than Milan/Venice.
What to buy (2026 plays)
- Mid-market rentals in proven residential zones
- Renovation plays (improve efficiency + comfort, then re-tenant at better rents)
- Small โcorporate rentalโ units for long-stay professionals (where demand exists)
Risk to price in
Tourism-driven yield can be seasonalโunderwrite using conservative occupancy assumptions.
7) Turin
Why Turin is a value + income play in 2026: It often offers a lower cost base, and forecasts show rent growth is one of the strongest setups among major cities.
What to buy (2026 plays)
- Long-term rentals near employment and university nodes
- Value-add refurbishments in improving districts
- โRent-readyโ units: modern kitchens/baths + energy upgrades + fast leasing
Risk to price in
Exit liquidity is typically lower than Milan/Romeโplan to hold for income.
8) Naples
Why Naples deserves attention: Itโs a classic value-add + demand growth storyโtourism, culture, and affordability dynamics can work in your favor with the right asset selection.
Momentum signal
Recent market reports indicate stronger short-term pricing momentum in Naples than in some other major cities.
What to buy (2026 plays)
- Renovation-led rentals targeting quality-seeking tenants
- Selective short-stay (only with full compliance systems)
- Small multi-units where capex unlocks a better tenant profile
Risk to price in
Neighborhood-level divergence is bigโdo not underwrite โNaples average.โ
9) Bari
Why Bari is a 2026 standout: In the same 2026 outlook dataset used above, Bari shows one of the strongest rent-growth forecasts among major cities.
On-the-ground affordability context
Local portal data also shows Bariโs sale prices are far below Milan/Rome levelsโan entry-price advantage for income-focused investors.
What to buy (2026 plays)
- Long-term rentals for local professionals + relocating households
- โGood value, good managementโ apartments (stable, repeatable strategy)
- Light value-add refurb (modernize + improve energy performance)
Risk to price in
Market depth is improving, but exits can be slower than in Tierโ1 hubs.
10) Palermo
Why Palermo rounds out the list: Lower entry pricing + tourism and lifestyle demand can create strong value propositionsโespecially when you professionalize operations.
What to buy (2026 plays)
- Value-add apartments for long-let tenants
- Managed short-stay where allowed (compliance + quality standards are non-negotiable)
- Small buildings with renovation upside down
Risk to price in
Capex surprises are common in older Mediterranean building stockโconduct a thorough inspection.
Compliance corner: short-term rentals in Italy (what 2026 investors must model)
If any part of your plan involves tourist rentals, you need to underwrite regulatory compliance as a core costโnot an afterthought.
Key items to know:
- National identification code (CIN): Italyโs tourism ministry operates the BDSR system for assigning the Codice Identificativo Nazionale (CIN) for tourist rentals/short lets.
- Legal basis: The CIN framework is set out in Italyโs Decree Law framework (Art. 13-ter, DL 145/2023).
- Guest reporting: Italian police guidance states guest details must be communicated via the Alloggiati Web process within 24 hours of arrival (and immediately for stays under 24 hours).
Platforms like Airbnb also publish country guidance for hosts, but your safest reference points are the official ministry + police sources above.
โIf I only pick one strategy for 2026โฆโ
Because the 2026 cycle is pointing toward rentals (income) more than pure price appreciation, a simple playbook looks like this:
Value-add + income entry: Naples, Bari, Palermo
Core + liquidity: Milan, Rome
Student/renter demand: Bologna, Turin
Tourism with strict compliance: Venice, Florence, Verona
