Italian Supreme Court orders full market compensation for expropriated land and tenant rent liability after damage

The Italian Supreme Court (Cassazione) issued two rulings that reshape property compensation rules. In an ordinance dated 2 July 2026 (n. 22638), the Court rejected the use of reduced agricultural values for land taken under expropriation, mandating that municipalities calculate indemnities based on the full market (venal) value, including the potential for intermediate uses such as sports facilities and parking. The decision obliges public administrations to assess the commercial potential of the land rather than applying a low agricultural benchmark.

In a separate ruling from 30 December 2025 (ordinance n. 34819), the Court clarified that a tenant who causes damage rendering a rental property uninhabitable must continue paying rent for the entire period required to restore the premises. The judgment interprets articles 1590‑1591 of the Civil Code, holding the landlord entitled to rent equivalent for each month of unavailability without needing to prove specific lost rent, provided the duration of repairs is documented.