Top Italian Cities to Buy Vacation Homes in 2025: Rome vs Milan vs Florence
Meta Description: Considering a holiday home in Italy? Discover why Rome, Milan, or Florence are great picks in 2025, what to watch out for, and which city works best depending on your investment style.
What’s Hot in the Italian Property Market in 2025
- Nationwide, house prices rose ~4.5 % YoY (2024) and new homes saw ~9.35 % growth. Global Property Guide+1
- In prime cities like Milan and Rome, luxury apartments & second homes are in strong demand, especially from foreign buyers. Investropa+2Engel & Völkers+2
- Florence has shown ~6.1 % annual price growth, partly driven by tourism and historical appeal. Investropa
So yes, 2025 continues to favor holiday-homes in Italy. But choosing the right city matters a lot (yields, costs, regulations all vary).
Rome: Culture, Tourists & Return Potential
Rome is timeless. If you want a vacation home that people will want to rent (or you’ll love visiting), Rome delivers.
Why Rome shines:
- Strong tourist flows + historic landmarks = always in demand.
- Prices ~€3,100-€3,200 per m² for existing homes. Global Property Guide
- Infrastructure improvements and public works ahead of big events push demand & values. Reuters+1
Watch out for:
- High maintenance costs (old buildings, historic zones).
- Regulatory restrictions on converting homes into short-term rentals.
- Price per square meter high in prime central zones; returns better in outer districts.
Best for: People who value lifestyle, want prestige, are okay with premium payments, possibly rent through Airbnb or similar.
Milan: Luxury & Business Appeal
If your vacation home also will serve as a city-pad or upscale place for business/travel, Milan might be your pick.
What makes Milan expensive & in demand:
- Milan has the highest new-home price among these three. ~€4,986/m² average. Global Property Guide+1
- High demand from international buyers, luxury buyers, professionals. Investropa+2Engel & Völkers+2
- Rental growth (especially prime central) expected to increase modestly. Cushman & Wakefield
Watch out for:
- Very high entry cost. You pay for location, prestige.
- Taxes, property costs, and fees in Milan are steep.
- Yield might be lower because cost of purchase is high, rental rates vs purchase price ratio may be less favorable.
Best for: Buyers with higher budget who want luxury, great location, possibly dual-use (vacation + business), or are targeting high-end rental income.
Florence: Beauty, Demand & Balanced Investment
Florence offers a mix of culture, tourism, manageable price (relative to Milan), and strong demand for vacation homes.
Florence strengths:
- ~€4,331/m² average in Florence, recent growth ~6.1 % YoY. Investropa+1
- Historic charm + tourist magnet + less ultra-premium pricing compared to Milan in many areas.
- High demand for short-term rentals in historic centre (though stricter rules around short-lets are being introduced). Reuters+1
Watch out for:
- Overtourism regulations (Florence is clamping down on short-stay restrictions). Reuters
- Maintenance and restoration costs in old buildings.
- Location matters: historic centre is expensive, outskirts cheaper but you lose some charm or rental demand.
Best for: Buyers seeking classic Italian beauty, steady vacation rental income, lifestyle investment, possibly lower maintenance cost vs Milan.
ROM vs MIL vs FLO: Which Fits You
Here’s a quick comparison to help match your priorities:
| Priority | Choose Rome if… | Choose Milan if… | Choose Florence if… |
|---|---|---|---|
| Strong tourist rent & culture vibe | ✔️ | ✔️ but mostly prime areas | ✔️ very strong in historic center |
| Luxury amenities & urban business use | Some luxury in Rome, yes | ✔️ top choice | Moderate, more charm than glitz |
| Lower purchase price vs prestige | Outer Rome suburbs | Hard—Milan is costly | Florence outskirts or smaller flats |
| Less regulatory risk around short-lets | Some risk in central Rome too | High cost + stricter rules in prime Milan | Some rules, but less over the top than Milan in many cases |
What to Check Before Buying
- Official regulations for short-term rentals in that city (Airbnb etc.).
- Taxes, maintenance, cost to renovate (historic buildings = costly).
- Whether energy efficiency / sustainable building certifications are in demand—these fetch premiums. Investropa
- Travel accessibility (airports, transport) since vacation homes rely on being easy to get to.
- Local demand and seasonal fluctuations for rentals.
Final Thoughts
If I were buying a vacation home in Italy in 2025:
- For prestige + potential rent + lifestyle, I’d pick a smaller, well-located flat in Florence.
- If I had more budget and wanted premium value + business usefulness, Milan still wins in luxury bracket.
- If I wanted more for less and strong tourist rental returns, outer Rome or central Florence might give best balance.
👉 Don’t just go with what sounds most beautiful. Match your budget, your rental strategy (long stays vs vacation rentals), and local regulations. The right city for you is one that gives you joy and return.