When looking for a house, you should know all the costs involved. Knowing the price helps you know whether living in Italy is a good choice, especially if you want to invest in the country.
The average cost of purchasing a house in Italy is between 1,929 EUR and 2,520 EUR per square meter. Prices highly depend on the location. Real estate prices start from 18,670 EUR. When it comes to renting in 2022, a 900 square foot apartment costs 1,007 EUR and smaller flat costs around 683 EUR monthly.
People haven’t considered Italy a top priority when it comes to purchasing a house. However, the Italian real estate market has tons of options at affordable prices. Yet, the country’s housing demand is gradually growing – so hurry up. Read through this article to learn more about housing prices in Italy.
Also read: Easiest places in Europe to buy a house.
Average house price in Italy in 2022
In Italy, the average house price is about 208,332 EUR when taking 108 m² as the average size of an Italian single-family home. An average house in the Italian capital costs between 3,993 EUR and 7,278 EUR per square meter, or 431,244 EUR to 786,024 EUR in total.
Prices for homes start from 21,356 EUR in a village in the South to multi-million dollar residences in Tuscany or next to Lake Como. There is a wide range of prices, with comfortable apartments ranging from 69,408 EUR to 133,478 EUR in desirable medium-sized towns.
The average house prices in Italy are higher in the largest cities, especially in Milan and Rome. There is an influx of people moving to the North from the South, causing the demand and real estate prices to rise.
In Milan, the average price for residential houses was 3,994 EUR per square meter in March 2022. In contrast, the Italian average is 1,929 EUR/m².
At the same time, houses in the Southern cities are much more affordable, with prices per square meter ranging from 1,300 EUR to 1,700 EUR.
Even towns within an hour’s drive of the city areas will have some houses in this price range. Villas usually are more expensive due to their size and location. Expect to pay at least 213,565 EUR for those—and you’ll need to save some money for renovations.
The southern regions have the most affordable options. Also, when it comes to rents, South is the cheapest. A furnished apartment in a provincial city will cost between 427 EUR and 747 EUR per month. Rentals in small towns start at 320 EUR and go up from there.
However, you will get less for your investment when renting out a place in Southern Italy.
Moreover, in March 2022, Italy’s average price for residential houses was 1,929 EUR/m², down 0.77% from March 2021 (1,944 EUR/m²). Italy’s average house purchase cost has risen steadily over the last two years.
In May 2020, the Italian real estate market saw the lowest purchasing rates, with an average of 1,884 EUR per square meter across all property types.
House prices in Italy
The average cost of a house in Italy has risen steadily over the last two years, peaking in March 2022 at 1,140 EUR per square meter. The month with the least asking price was May 2020, with an average of 1,060 EUR monthly per square meter.
Rental prices in Italy
In August 2021, the average rental price for residential properties was between 5,7 EUR and 15,2 EUR per square meter per month across various regions. Therefore, the rent for an average apartment of 80 m² is between 456 EUR in affordable Molise and 1,216 EUR in pricey Lombardy.
Average house price in Italy by region
House prices in Italy vary by region, giving you many options to consider. The cost varies on the location, proximity to the large cities, availability of resources, and tourist attractions within the area.
Statistical data shows that Northern regions in Italy are in times more expensive than Southern to buy a house:
|Friuli Venezia Giulia
|Trentino Alto Adige
Besides, you can see the average house prices per m² in various regions in the graphic below.
Trentino South Tyrol ranked 2nd with 2,533 EUR per square meter, followed by Liguria with an average of 2,440-2,504 EUR per square meter. Because of their prime location, natural beauty, and uniqueness, these areas ranked as the top expensive in the country.
These characteristics make them economically successful and appealing to a wealthy public from a touristic approach.
Venice has ranked among the cities with the most expensive houses in Italy. As of February 2021, the city had an average of 4,467 EUR per square meter. However, this was a decrease of 0.7% from the previous year.
Rome, the country’s capital, the largest city, had an average house price of 2,848 EUR as of 2021, an increase of 0.6% from the previous year.
Milan attracts domestic & foreign workers and investments thanks to its role as a business and finance capital and an innovation hub. However, this also drives the real estate prices to the roof. Milan has become one of the most expensive cities in Europe.
Hence, the city’s real estate market, which is among the most dynamic in the country, makes housing in the area a high cost. Its average home prices in Milan are 3,994 EUR per square meter.
In Turin, the average house price is 1,606 EUR per square meter. Bologna home prices average 3,060 per square meter. In 2021, house prices in Florence dropped by 0.4% to make an average of 3,947 EUR per square meter.
The third most populous city, Naples, averages 2,221 EUR per square meter. In Palermo, the average house price dropped to 1,190 EUR per square meter in 2021. The average house price also fell in Genio and Catania to 1,394 EUR and 1,190 EUR.
In March 2022, the Aosta Valley region registered the highest average house price of 2,562 EUR per square meter.
Furthermore, Italy’s housing demand is slowly shifting to the south, making the house prices in the area increase with time. Smart and remote working is one reason why the southern region house prices may continue to increase.
How much does it cost to buy a house in Italy?
Purchasing a house in Italy will cost more than the actual house price. Some additional costs may total around 9-12% of the house price, depending on the location:
- Housing Agents
There’s a price to pay when you purchase a house through a housing agency. However, you may avoid this when dealing with the owner directly.
Depending on the agency, you may pay up to 9% of the actual cost of the house. Most agencies add their commission on the house price, which they’ll later receive when you purchase the home.
- Notary Fees
You’ll pay notary fees to facilitate a smooth transfer of the property. Notary charges favor all parties involved, and it may take around 3% of the cost. You pay the notary fee after signing the final contract.
- Registration Tax
Italian registration tax varies depending on the house you’re purchasing. Old houses attract a registration fee of 3% when you’re buying them as your main home. For second homes and non-residential citizens, the registration tax rises to 7%.
The residential tax is calculated from the actual house price, not the purchase price. When planning to become a residential citizen in Italy, come 18 months before purchasing your first house.
- Land Registry Tax
Land registry tax applies to all property transactions. Residents pay a standard fee of 168 EUR regardless of the property type. Non-residents and second homes attract 1% of the declared house price.
If you’re buying a new property, you do not have to pay registration tax; instead, you pay VAT which ranges from 4% to 22%. A home is classified as new if built or restored within five years.
VAT is charged at 4% for first-time residents, 10% for second-time and non-resident buyers, and 22% for luxury properties.
- Legal Fees
A lawyer conducts house transactions. The legal fees are 1-2% of the actual house price. However, there are some conditions where you may not pay the legal fees.
You should not pay legal fees if you go through the property documents and purchase terms and find them not 100% correct.
- Home Insurance
If a house you purchase has insurance cover, it’ll be best for you to continue paying the insurance. Insurance will add to the operational costs but secure your property.
It’s often recommended to have a home and property insurance for your house in Italy, as it is for any other country. Italian insurance providers usually charge between 180 and 380 EUR annually, based on the options of your home.
- Maintenance Expenses
Any home you purchase requires to run, and here’s where the maintenance cost comes in. It includes regular utility bills for water, electricity & gas, which depend on the consumption and are paid either monthly or annually.
In Italy, tenants pay utility bills separately from the rent. So if you rent out the house, the bills are covered.
How much you pay for water depends on the region you buy a home. Italian residents spend from 163 EUR all way up to 688 EUR per year on water services.
In many parts of Italy, public and private companies control the water supply. Some houses have private wells that supply their water.
In most cases, individual households are metered and billed every two months. When renting out a home, you can include the water bill in the monthly rent or charge it separately in apartments.
Electricity is expensive in Italy – you pay 0.214 EUR per kilowatt. The electricity bill is usually charged once every two months. The charges depend on the amount and capacity of electrical appliances you use in your home.
A single-person household consumes about 2,000 – 3,000 kilowatts per year. That comes to about 434 – 642 EUR in electric bills every year.
Gas is cheaper than electricity – 0,1 EUR per kWh on average. Once you buy a house, you’ll find a centralized system and may have a monthly payment measure.