Foreign buyers now account for roughly 20% of Rome's prime residential market, up from 7% in 2019. The Italian capital is attracting wealthy purchasers through urban upgrades, renovated historic residences and a lower overall entry point than Milan. The 20% share refers to prime property, not the whole housing market.

The Financial Times links the shift to roughly €3.7 billion in improvements tied to the 2025 Catholic Jubilee and a new generation of high-end residences designed for international buyers.

Foreign demand has nearly tripled as a share of prime buyers

The foreign share of prime purchases rose from about 7% in 2019 to approximately 20% in 2026, with interest from the UK, France and the US. That does not prove the number of foreign transactions tripled; a change in share is different from a change in sales volume.

Developments such as House of Minerva and Palazzo Raggi illustrate a shift in product. Buyers increasingly expect modern services and infrastructure alongside Rome's historic architecture.

What €3.7 billion in upgrades has changed

Improvements associated with the 2025 Jubilee included transport, streets and public spaces. The €3.7 billion figure describes a broad urban programme, not investment solely in residential property.

Rome still faces bureaucratic and infrastructure challenges, but improvements in the daily urban environment have made the city more compelling to international residents.

Rome and Milan offer different investment profiles

Milan remains Italy's leading business and finance hub. Rome competes through history, culture, differentiated neighbourhoods and a relatively more accessible average housing market.

Rome's average asking price reached €3,759 per square metre in March 2026. That figure concealed major differences: peripheral locations could sit near €1,875, while the historic centre exceeded €8,700 per square metre.

Rome's property market by location

Where prime buyers look

Centro Storico offers scarce historic homes and landmark views. Parioli attracts buyers seeking a prestigious residential district, Prati provides central access and services, Aventino offers privacy, and Trastevere combines historic character with international recognition.

Building quality, lifts, parking, energy performance and renovation permissions can have a major impact on the value of individual properties.

International hotels add to the city's appeal

Global hotel investment and redevelopment strengthen Rome's position among wealthy visitors and long-stay guests. Hotel demand, however, is not a direct proxy for residential prices.

More high-quality hospitality and public space can improve the experience of living in Rome as well as visiting it.

Italy's flat tax has become more expensive

From January 1, 2026, the fixed annual levy on qualifying foreign-source income rose to €300,000 for new entrants, plus €50,000 for each eligible family member.

Eligibility requires a genuine transfer of Italian tax residence and at least nine years of non-residence in the prior ten. Purchasing real estate does not automatically grant tax status or residency rights, and Italian-source income remains subject to ordinary taxation.

What investors must verify

Historic preservation rules, building conditions, lawful alterations, renovation costs and ownership records can materially affect a property's economics. Buyers should assess completed comparable transactions and ongoing costs, not just city-wide price averages.

Rome competes for global wealth on different terms

The rise in the foreign share of prime buyers shows a change in Rome's international standing. It does not mean every district or property type will appreciate at the same pace.

Rome is not simply a cheaper Milan. It offers a distinct lifestyle and a property market where asset-level diligence can matter more than the broader trend.

FAQ

Are one in five Rome homebuyers foreign?

No. The figure refers specifically to the prime market in 2026, not all home transactions.

Why are foreign buyers returning to Rome?

Urban investment, renovated prime residences, cultural appeal and comparative pricing are among the factors.

How much does Rome property cost?

The average asking price was €3,759 per square metre in March 2026, while the historic centre exceeded €8,700.

How does Rome compare with Milan?

Milan is more business-driven; Rome offers distinctive historic districts, institutional demand, culture and tourism. The better choice depends on the buyer's goals.

What is Italy's 2026 flat tax for new residents?

The annual fixed amount is €300,000 on qualifying foreign-source income for new entrants, with €50,000 per eligible family member.

Does buying a home in Rome grant residency?

No. Real estate ownership alone does not provide residency permission or access to the special tax regime.