Rome’s real estate sector is experiencing a resurgence as more investors shift their focus to the Italian capital, spurred by the city’s relatively lower property prices compared to Milan and favourable changes in urban planning regulations. As Milan’s real estate market cools due to rising prices and a tightening regulatory environment, Rome has positioned itself as an attractive alternative for both domestic and international investors.
For years, Milan dominated Italy’s property market, accounting for over half of the country’s professional real estate investments. However, recent shifts have seen Rome gaining traction. Data from property services firm JLL revealed that Rome now commands 17% of all professional real estate investments in Italy, marking a substantial increase from the average 11% share between 2020 and 2024. In 2024 alone, investors poured 1.7 billion euros into the capital’s property market, more than double the 2023 figure.
The uptick in investment comes at a time when Rome is making significant strides in improving infrastructure and renewing its urban landscape. One of the key factors driving this growth is the ongoing refurbishing efforts spurred by the Holy Year, expected to bring an additional 10 million tourists to the city. With public spending amounting to up to 8 billion euros, Rome is experiencing an unprecedented push for central area renovations and infrastructure upgrades. The city’s administration is also making it easier for investors to navigate its traditionally cumbersome bureaucracy by lifting restrictions on projects and speeding up approval processes.
Among those investing in Rome’s transformation is global real estate investment manager Hines, which is eyeing its first project in the city. Mario Abbadessa, Hines’ country head for Italy, believes Rome is on the cusp of a real estate renaissance similar to what Milan experienced in the past decade. The cost gap between Milan and Rome is seen as a significant opportunity for investors, with the average price per square metre in Rome standing at 8,000 to 9,000 euros, compared to 12,000 to 14,000 euros in Milan.
Despite its history of stagnation, Rome’s property market is increasingly drawing international interest. CPI Property Group, a Czech firm, has shifted much of its focus to the capital, investing 1.5 billion euros in Rome since 2018. Other smaller investors, such as Italian group Hera Holding, are also investing heavily in the city, with projects now representing a growing portion of their portfolios.
Challenges remain, however, particularly with the lingering “bureaucracy risk” that has long plagued real estate investments in Rome. For years, small, family-owned builders struggled, and many projects stalled due to slow decision-making and an inflexible approval system. But recent steps to modernise urban planning procedures and empower the administration to make quicker decisions are a sign of hope for potential investors.
Notably, projects that were previously abandoned are now being revived. One example is the renovation of the long-stalled Ex Fiera di Roma site, which has sat dormant for two decades. Supported by banks UniCredit and illimity, the site is being redeveloped into a mix of residential buildings, including social housing, to ensure the city avoids the gentrification seen in Milan.
Rome’s larger size and its appeal to a broader demographic, including families and students, further protect it from the risks of rapid gentrification. Unlike Milan, which has seen wealthy foreigners flock to its property market, Rome’s real estate remains more accessible to local residents. As investment continues to flow into the capital, experts believe that Rome is poised to become a key player in Italy’s property market, with the potential for long-term growth and transformation.
In conclusion, the renewed attention from investors, combined with strategic urban planning reforms, positions Rome as a prime destination for real estate development. While it may not replicate Milan’s rapid transformation, the capital’s evolving market suggests a promising future, particularly for those willing to navigate its complex landscape and capitalise on the opportunities emerging in the wake of the Holy Year.
