Italy sees record-high rental prices as rents climb across the country

In the second quarter of 2026 Italy's rental market reached its highest level since Idealista began tracking in 2012. Average rent rose 4.2% from the previous quarter and 5.5% year‑on‑year to €15.4 per square metre, a new national record. Growth was broad‑based, with more than 80% of provinces reporting higher rents; tourist‑focused and low‑density areas saw the biggest jumps, while major cities such as Milan, Rome and Florence showed only modest increases. Milan remains the most expensive city at €23.3 /m², followed by Florence, Venice, Rome and Bologna.

A separate analysis of Milan’s short‑term rental market shows that earnings from tourist‑oriented lettings are comparable to traditional long‑term leases. A typical two‑room flat rents for €850‑€1,200 per month, yielding about €12,000 gross annually. Short‑term rentals generate an average nightly rate of €195 with roughly 76 booked nights per year, producing a similar gross annual income of around €12,150. Tax rates differ, with short‑term rentals facing a higher 26% levy versus 21% on standard leases, and additional management costs apply to the former.