The property market in 2026: trends, growth sectors and new opportunities

In the first quarter of 2026, investment in the Italian property market reached around €2.6 billion, a figure in line with the average of recent years, although slightly down on 2025 (-5%). Despite this, Italy continues to prove an attractive market for both domestic and international investors.

The most dynamic sectors

The retail sector (shops and shopping centres) remains the most active, with over €650 million invested and growth of 22%. The main transactions involve outlet centres, high streets and retail parks.

Next comes the tourism and hospitality sector, with around €510 million, which continues to attract foreign investment, particularly in upmarket locations and major cities such as Milan and Rome.

The logistics sector is seeing a decline in investment, but demand remains very strong, particularly for modern, high-quality properties. This trend is contributing to rising rents in major urban areas.

The office sector has also seen a decline, with around €400 million invested, whilst interest in alternative assets, such as healthcare and student housing, is growing significantly, as these sectors are emerging as new investment opportunities.

The housing market

Following a strong 2025, with a 6.6% increase in property sales, the residential market is now showing signs of stabilising.

A number of significant trends can be observed:

• an increase in new construction, particularly in major urban centres
• Mortgage rates are rising slightly (around 3.5%)
• a decline in purchases made on credit
• The rental market remains broadly stable, with rents falling slightly in major cities
• the rise of flexible housing solutions, such as short-term and student rentals

Challenges and prospects

The current climate is characterised by greater caution due to economic and international uncertainty. Added to this are a number of local challenges, such as planning difficulties in key cities like Milan.

Overall, around €1 billion in investment has been postponed, indicating a more cautious market, though not one in decline.

Conclusions

Conclusions

Source: ‘Property market: €2.6 billion invested in Italy in the first quarter of 2026’ (https://www.monitorimmobiliare.it/)