Property prices in Rome have increased by 3% in the last year alone. According to Reuters, the city has attracted €1.7 billion in professional investments. When combined with €8 billion in public investments, these figures are making a significant impact.
Rome’s Real Estate Market Trends – Source: Euromq
Rome appears to be on a rapid growth trajectory, with many experts suggesting it is ready to dethrone Milan as Italy’s real estate capital. But what is really behind this surge? Is Rome’s market truly solid and sustainable, or is it built on shaky foundations?
In this article, we will conduct an in-depth analysis of Rome’s real estate market. By the end, I will share my vision for the future and how you can prepare for it.
Why Make a market analysis About Rome?
I love analyzing the real estate market. Recently, I created videos covering the national market.
More importantly, I have studied Rome’s market in detail because Valente Italian Properties is fully operational in the city. If you are planning to invest in Rome, have property to sell or manage contact us.
Property Prices
Rome has captured the attention of high-level investors. But, in reality, While Milan’s prices surged by 27% on average and 52% in central areas (according to PwC) over the last decade, thanks to the 2015 Expo, Rome’s prices actually declined by 14% (according to Nomisma).
How this could possibly be a good sign for Rome?
Because major investors think differently from the general public. As Warren Buffet says: “The best time to invest is when prices are going down.”
At this moment, Rome represents a lucrative opportunity for real estate investors precisely because its prices remain low compared to most European capitals.
But what is really happening with prices in Rome? We’ve seen a 3% increase over the past year, but Rome is a vast city, and not all areas behave the same way.
Trends and, more importantly, infrastructure investments drive price movements differently across various districts.
South Rome
EUR District
Prices have steadily increased in recent years. (Source: Euromq).
Monteverde
Retraced after an explosive 2023.
West Rome
Casalotti
– One of the fastest-growing districts, with a +6.1% increase in 2023.
Ottavia
Experienced significant declines and remained stable in the past year.
East Rome
Castelverde
After a clear negative trend, it rebounded in 2023 and remained stable in 2024.
Colli Aniene
Has skyrocketed in recent years.
North Rome & Central Areas
Parioli
Prati
Trastevere
Testaccio
Number of Transactions
Rome remains the Italian city with the highest number of home sales, exceeding 34,000 transactions annually (OMI Residential Report 2024).
Milan has approximately 10,000 fewer transactions per year, but thanks to higher prices, it generates greater revenue. With an average price of €2,760/m², Rome is well above the regional average of €2,290/m², while Milan, with 24,832 transactions, boasts a significantly higher price of €4,716/m².
However, compared to the previous year, transaction numbers in Rome have declined by 14.1%, far exceeding the national average decline. That said, 2024 shows early signs of a rebound in sales volume.
Housing Supply
The number of properties available for sale, known as inventory, is crucial for market trends.
Why is housing supply important?
The weighted average number of properties listed online provides insights into market direction. A significant increase in listings gives buyers more choices and better price negotiation power. Conversely, a decline in inventory suggests potential price increases due to supply and demand dynamics.
But what is happening in Rome?
By analyzing the Real Estate Inventory tool from Euromq, we get a clearer picture.
Rome’s transaction volume is high, and investors are drawn to its relatively low prices compared to other European capitals. (Yes, I know that if you are house hunting, these prices may still seem high!)
As a result, the number of properties for sale is shrinking.
What does this mean? Are prices going to rise further? We’ll discuss this shortly.
Real Estate Agencies in Rome
The number of real estate agencies matters for several reasons:
- It serves as a cross-check against inventory levels.
- A decline in listings could result from fewer agencies rather than a true drop in available properties.
Interestingly, in the past year, the number of active agencies on major platforms (Idealista & Immobiliare.it) has increased from 5,388 in 2024 to 5,691 in 2025, marking a 5.6% rise.
This contradicts the declining inventory trend. More agencies should mean more listings, yet inventory is shrinking—indicating a significant supply shortage.
Additionally, more agencies competing for fewer properties may push some out of business if they struggle to secure enough listings to sustain operations.
Clearly, this is a seller’s market.
Buyer’s vs. Seller’s Market
Seller’s Market
🔑 Definition: Occurs when housing demand exceeds supply. Sellers hold the advantage, commanding higher prices and faster sales.
✅ Typical Signs:
- Multiple buyers competing for the same property.
- Homes selling above asking price.
- Shorter time on the market.
💡 Example: In a neighborhood with 5 available homes but 20 interested buyers, competition drives prices higher. Sellers can pick the best offer, often above the asking price.
Buyer’s Market
🔑 Definition: Occurs when housing supply surpasses demand. Buyers hold the advantage, negotiating lower prices and better terms.
✅ Typical Signs:
- Homes sit on the market longer.
- Sellers are willing to lower prices.
- Buyers can demand better conditions (e.g., covering closing costs).
💡 Example: In a neighborhood with 20 available homes but only 5 buyers, sellers may offer discounts or incentives (e.g., free furnishings, reduced fees) to attract buyers.
Future Market Trends
Disclaimer: The following insights are not financial advice. I cannot predict the future, but I am sharing my perspective on Rome’s real estate market. I’d love to hear your thoughts—drop a comment below!
Rome’s prices are likely to rise (exactly how much is uncertain). All fundamental indicators point in that direction:
- Low housing supply
- Falling interest rates
- Upcoming global events (e.g., 2025 Jubilee)
- Increasing interest from international investors
- Large-scale public investments
However, a lingering question remains: Is this growth fueled solely by short-term hype from the Jubilee and short-term rentals, or is it a lasting, sustainable trend?
Sources:
- Euromq Valuation Platform
- Reuters: Move over Milan: Property Investors Set Their Sights on Rome
- Idealista News: Rome’s Real Estate Market, Numbers & Trends in 2024