Italy Property Revival Draws Investors Beyond Milan Scandal
Investors now focus on Italy property revival instead of past controversies. Confidence is returning after reforms followed a major Milan permits scandal. As a result, Italy’s real estate outlook for 2026 looks increasingly strong.
Property research firm Scenari Immobiliari predicts steady expansion. It expects total transactions to reach €175.8 billion this year. Residential assets will account for more than 80 percent of activity.
Growth Outpaces Other European Markets
Italy’s property revival could outperform other European nations. For example, analysts forecast 8.4 percent annual growth. This pace beats Spain, the UK, Germany, and France. Spain may see seven percent growth this year.
Meanwhile, the UK could reach 6.6 percent. Germany and France are expected to trail even further.
Milan Scandal Shakes, Then Reshapes Confidence
The Milan building scandal emerged publicly in 2024. It involved fast tracked permits for high rise developments. Initially, investors feared a rapid withdrawal of foreign capital. Authorities froze more than 100 projects across Milan. This pause raised concerns about long term losses. Scenari Immobiliari warned Milan could lose €38 billion over ten years.
However, the feared investor exit never fully happened. Instead, buyers adapted with stricter checks. Therefore, due diligence standards now exceed past levels.
Political Stability Supports Investor Trust
Italian property revival also benefits from rare political continuity. Prime Minister Giorgia Meloni has led the country for three years. This stability reassures both domestic and global investors. Market data shows transactions rose nearly seven percent in 2025.
Italy ranked as Europe’s second most active property market. Only Spain recorded higher momentum during that period. Industry leaders confirm confidence remains intact. Savills Italy CEO Davide Dalmiglio notes deeper scrutiny before deals. However, he says capital flight never materialized.
