Italy’s housing market is undergoing a geographic reversal. After years in which Milan, Rome and other major cities dominated residential demand, buyers are increasingly choosing provincial towns and smaller municipalities, where homes generally cost less and offer more space.
A Confedilizia analysis based on Italian Revenue Agency data shows that residential transactions in non-capital municipalities increased 32.7% between 2019 and 2025, more than twice the 15.5% growth recorded in provincial capitals.
