Italy real estate investments hit decade high amid rising living costs

The Italian real estate and economic landscape is experiencing significant shifts. In the first nine months of 2026, real estate investments reached approximately 10.6 billion euros, the highest result in a decade. This growth is driven by diverse sectors including retail, logistics, hospitality, and living, with retail accounting for 27% of total investments.

However, rising costs are impacting residential accessibility. Housing prices rose by 4% in the second quarter of 2026 compared to the previous year, with new builds increasing by 5%. This trend, coupled with international tensions and energy costs, is eroding the ability of families to afford homes. In specific regions like Salerno, a massive gap exists between luxury coastal areas like Amalfi, where prices reach 4,150 euros per square meter, and inland areas like San Gregorio Magno at 510 euros per square meter.

Simultaneously, the cost-of-living crisis is forcing Italian families to adjust essential spending. Data from Istat and Banca d'Italia indicate that nearly 30% of families have reduced food expenditures. Other areas seeing cuts include clothing, footwear, and even healthcare and personal hygiene services, as households struggle to manage domestic budgets amidst high inflation and reduced purchasing power.