The Italian economy in 2026 is offering a stable, low‑inflation environment encouraging opportunities for international investors in the property market.
The Office of National Statistics (ISTAT) projects Italian GDP growth of 0.8% in 2026 (previously this was 0.7% in 2024 of 0.5% in 2025) which is driven entirely by domestic consumption and investment rather than exports.
Employment is expected to grow even faster than the GDP (+0.9% predicted for 2026) with unemployment edging downwards. Both ISTAT and the European Commission also foresee a slowing down of inflation to 1.3–1.4% in 2026 (from around 1.7% in 2025).
The PNRR and its impact on the property market in Italy
Public investment linked to the PNRR (Piano Nazionale di Ripresa e Resilienza) is expected to encourage new construction and improvement of the infrastructure. The PNRR is Italy’s national investment and reform programme financed through the European Union’s Recovery and Resilience Facility (RRF), the central pillar of the EU’s NextGenerationEU strategy. Italy is the largest beneficiary of this in Europe, receiving €191.5 billion in grants and loans. Link to the government Portal: PNRR
2025 was in fact a record year for real estate in Italy, with investment of 12,5 billion Euro, said to be the second highest ever, and of this 58% was from foreign investment. Market overview 2025 – Cushman & Wakefield
Overseas investment in Italian real estate comes primarily from the United States, Germany, France, the United Kingdom, and other Northern European countries, with additional flows increasing from the Middle East and Asia.