Foreign Demand Shifts Towards Sardinia

Italy’s real estate market is benefiting from strong international demand, with foreign buyers spending €5.5 billion in 2025, the highest level in a decade and 10% above 2024.

Increasingly, that demand is moving beyond Italy’s traditional tourist centres towards villages, rural areas and less-crowded coastlines. Sardinia is one of the clearest beneficiaries of this shift.

Foreign interest is strongest around Olbia, Alghero and Gallura, which account for nearly 7 in 10 international enquiries on the island. Cagliari is also seeing steady growth.

Market fundamentals remain supportive, with transactions up 7.4% in the first half of 2026. Most properties are selling within six months, while limited supply is becoming a bigger constraint than weak demand. 

Buyers Prioritise Authenticity and Lifestyle

International buyers are showing particular interest in country houses with land, especially the traditional Gallura-style stazzo.

The strongest-performing properties typically offer privacy, proximity to the coast, access to Olbia or Alghero airports, and traditional architecture combined with nearby local communities.

This combination is creating a clear premium. In 2025, three out of four homes sold by internationally focused agencies went to foreign buyers, with some paying up to 20% above local market prices for properties matching these preferences.

Germany currently represents the largest share of completed purchases, followed by the United States, Canada and the United Kingdom. Meanwhile, Asian demand remains largely untapped.

Outlook

Sardinia is well positioned as an emerging international property destination, combining an established global reputation with growing transaction activity and relatively limited Asian participation.

For the Juwai IQI network, this creates an early positioning opportunity before Sardinia becomes more widely recognised among Asian buyers.

The strongest prospects are likely to remain in authentic, well-connected lifestyle properties offering privacy, coastal access and long-term residential appeal.

The contents of this article were contributed by Giulia Mattana, Head of IQI Sardinia Italy.

The post Sardinia Property Market 2026: Foreign Buyers Drive Italy’s Next Emerging Hotspot appeared first on IQI Blog.

Residential Momentum Remains Strong

Italy’s housing market entered the second half of 2026 with solid momentum. House prices increased 5.2% year-on-year in Q1 2026, supported by stronger transaction activity and improving demand.

New-build prices rose 6.7%, while existing homes gained 4.8%. Residential sales also increased 4.4% year-on-year, with total transactions forecast to grow by approximately 8.4% across 2026.

Price growth remained concentrated in major cities. Milan led with a 6.3% increase, followed by Rome at 5.0% and Turin at 3.6%. National asking prices averaged €2,188 per square metre in April.

However, the financing environment has become less supportive. The European Central Bank raised its deposit rate to 2.25% in June 2026, weakening the lower-cost mortgage conditions that supported the earlier recovery. 

Quality Assets Continue to Attract Capital

Higher interest rates have not significantly reduced demand for premium assets. Commercial property investment reached €12.5 billion in 2025, up 23% year-on-year, with international investors contributing 58% of total capital.

Luxury property also remained resilient. International buyers now account for around 35% of Italy’s prime market, supported by continued demand for lifestyle properties and high-net-worth relocation.

Residential rental fundamentals remain attractive, with average gross yields of 7.23% nationally. Yields ranged from 9.17% in Catania to 5.26% in Milan.

Competition is strongest for Grade-A offices, energy-efficient buildings and prime coastal properties, where limited supply continues to support values.

Outlook

Italy’s property market is expected to remain positive but more selective.

Higher financing costs may slow leveraged purchases, while cash-rich buyers and international investors should remain active. Well-located, energy-efficient and income-producing assets are likely to outperform as the wider market moves towards more measured growth.

The post Italy Property Market Outlook 2026: Prices Rise as the Rate Cycle Turns appeared first on IQI Blog.

Italy’s Residential Market Gains Momentum

Italy’s residential market entered mid-2026 with stronger pricing and sales activity. House prices rose 1.0% quarter-on-quarter and 5.2% year-on-year in Q1 2026, supported mainly by existing homes, which increased 1.5% over the quarter.

Transaction activity also improved. Residential sales rose 4.4% year-on-year in Q1 2026, a clear acceleration from the previous quarter. This follows 766,756 transactions in 2025, one of the strongest annual performances of the past decade.

Growth remains uneven across major cities. Milan led with 6.3% year-on-year price growth, followed by Rome at 5.0% and Turin at 3.6%. Rental yields also remained attractive, with average gross yields at 7.23% in January 2026. 

Investment Demand Remains Selective

Italy’s investment market also showed strong momentum, with total investment volume reaching €12.5 billion in 2025, up 23% year-on-year. Foreign capital accounted for 58% of total investment, mainly targeting retail, hospitality, industrial and logistics assets.

However, investors are becoming more selective. Demand is strongest for premium, liquid assets, with prime office yields in Milan around 4%. Limited supply of Grade A and energy-efficient stock continues to support competition for quality assets.

Outlook

Italy’s 2026 outlook remains positive but disciplined. Residential demand should stay supported by major cities, rental income and continued interest from international buyers.

At the same time, higher energy risks, inflation pressure and steady ECB rates may keep investors cautious. The strongest opportunities are likely to be in well-located residential assets, student housing, logistics and high-quality buildings that meet modern efficiency standards.

The post Italy Property Market July 2026: Residential Prices Rise as Investment Demand Strengthens appeared first on IQI Blog.

Italy’s property market remains resilient in 2026, supported by steady price growth, healthy rental demand, and continued interest in major urban centres. While buyers are becoming more selective, strong fundamentals in key cities continue to support long-term investment opportunities across the country.

Prime Cities Continue to Outperform

One of the clearest trends in 2026 is the growing gap between Italy’s prime cities and more affordable regional markets. Milan remains the country’s premium property market, with average asking prices exceeding €6,500 per square metre, while Florence, Rome, and Bologna continue attracting demand from both local and international buyers.

These cities benefit from strong tourism activity, established business centres, international demand, and limited housing supply, helping support stable price growth despite a slower economic environment.

Buyers Focus More on Value and Rental Potential

While transaction activity remains healthy, buyers are becoming more cautious and selective. Market participants are placing greater emphasis on location quality, transport accessibility, rental demand, and long-term investment potential rather than simply chasing lower prices.

Rental demand continues to be a major support for the market. Cities such as Milan and Florence benefit from strong tenant demand and premium rental pricing, while more affordable markets including Turin, Genoa, Palermo, and Catania are attracting investors seeking higher yields and lower entry costs.

Stable Market with Long-Term Opportunities

Italy is increasingly being viewed as a market driven by fundamentals rather than speculation. Existing homes continue to outperform new developments, reflecting stronger demand for established properties in mature neighbourhoods. At the same time, a wide range of entry points allows investors to choose between premium capital growth markets and more affordable yield-focused locations.

This diversity remains one of Italy’s key strengths, offering opportunities across multiple buyer profiles and investment strategies.

Outlook

Italy’s property market is expected to remain stable throughout the second half of 2026. While price growth may moderate compared to previous years, strong rental demand, international buyer interest, and limited supply in major cities should continue supporting market fundamentals. For investors, success will increasingly depend on selecting the right city, location, and asset quality rather than relying on broad market growth.

The post Italy Property Market 2026: Prime Cities Lead Growth as Buyers Become More Selective appeared first on IQI Blog.

Version: BM, CN

IQI, the international real estate agency network, has announced today the launch of IQI Sardinia, marking its second office in Italy and a strategic entry into the island’s exclusive luxury property market.  

Located in the heart of Sardinia, the new office will cater to luxury buyers and sellers, with a focus on the prestigious Costa Smeralda and other sought-after high-end residential destinations. 

“Sardinia gives us a direct presence in one of the most exclusive markets in Europe,” said Kashif Ansari, Co-Founder and Group CEO of Juwai IQI.  

“IQI Sardinia strengthens our ability to serve global investors seeking prime properties, especially second homes and investment residences.”  

Kashif Ansari, Co-Founder and Group CEO of Juwai IQI

Ansari also highlighted that Sardinia aligns with the group’s strategy to expand in luxury and cross-border markets.  

“We are excited to support Immobiliare Sarda team with access to our international marketing platform, our AI-powered lead system, and a global network of over 53,000 agents in 35+ countries.” 

“This office is an important step in our European expansion. Sardinia is poised for sustained growth and is increasingly popular with cross-border buyers.” 

“We believe our global network of agents and marketing portals will enable us to introduce Sardinia to wealthy Asian buyers who are increasingly curious about European markets outside of the traditional big destinations,” Ansari concluded.  

Daniel Ho, Co-Founder and Group Managing Director of Juwai IQI, also shared his enthusiasm.  

“Sardinia, and especially Costa Smeralda, is one of the most desirable destinations in Europe for high-end property buyers.” 

Ho highlighted that the average price of prime homes in Sardinia rose by 18% in 2023, while luxury rental rates have now doubled compared to pre-Covid levels.  

In 2024, international demand for Sardinian real estate has increased by more than 60%, with growing interest primarily from buyers in Germany, the United States, and Northern Europe. 

“We expect our presence in the market to bring an increasing number of buyers from China, the Middle East, India, and Southeast Asia, as well.”  

Daniel Ho, Co-Founder and Group Managing Director of Juwai IQI

“This is a second-home market with a strong long-term outlook. We are thrilled to partner with local experts who know the market deeply and provide trusted service to our buyers from other countries,” shared Ho.  

IQI Sardinia will be led by a team that combines long-standing experience in the real estate sector with a forward-thinking and innovative vision.  

“We joined IQI because we wanted to offer our clients a truly global service,” said Giulia Mattana, the appointed COO.  

“Our local expertise combined with IQI’s international network and digital tools will help us reach more buyers, promote properties more effectively, and bring more value to sellers.” 

Giulia Mattana

“The network’s global reach, strong brand, and technology-driven marketing were decisive for us. We want to give our properties access to a wider audience, especially in Asia and the Middle East,” said Mattana.  

With the launch of IQI Sardinia, agents will be fully equipped to support international buyers with legal, tax, and lifestyle-related inquiries.  

IQI Sardinia is positioned to become a leading force in the luxury market, offering comprehensive services that empower buyers and investors to make informed and confident property decisions in Sardinia. 

Excited about investing in Sardinia property? Get expert advice from our professional real estate negotiators, who can provide you with the best market insights!

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