Italy's Property Market: The Rising Phoenix of Europe

Italy's property market is expected to outperform its European counterparts by 2026. Political stability and regulatory improvements following a Milan permit scandal have bolstered investor confidence despite supply issues. An 8.4% growth in real estate transactions is predicted, driven by the robust residential sector.

Italy's real estate sector is poised to outshine its European peers by 2026, thanks to newfound political stability and regulatory clarity after a building permit scandal rocked Milan. This development is expected to attract a significant influx of investors, even as concerns over supply persist.

According to property research group Scenari Immobiliari, Italy's real estate market transactions are projected to grow by 8.4% this year, reaching a staggering 175.8 billion euros. The residential sector remains a dominant force, composing over 80% of this growth, in contrast to slower growth rates in Spain, the UK, Germany, and France.

The scandal, which involved fast-tracking of permits for high-rise developments and led to the freezing of over 100 building projects, initially spurred fears of investor withdrawal. However, stringent due diligence, alongside Prime Minister Giorgia Meloni's stable rule, has allayed such concerns, enhancing Italy's investment appeal.

(With inputs from agencies.)