The Covid-19 pandemic marked a turning point for the global real estate sector. Between lockdowns, remote working and profound social changes, the home has shifted from a simple living space to the center of everyday life.
A few years on, the real estate market has not only recovered but has undergone a structural transformation. And the numbers clearly prove it.
From slowdown to recovery: key data
During 2020, the market experienced a sharp decline, but as early as 2021 a recovery phase began—one that can now be considered well established.
In 2025, the Italian real estate sector reached:
- €12.6 billion in investments,
- with a +28% increase compared to 2024,
- marking the highest value of the past 6 years.
The residential sector has also shown strong resilience:
- around 770,000 transactions in 2025 (+6.9% year-on-year),
- forecast of 800,000 in 2026,
- average prices rising by approximately +3.1% in 2025.
These figures describe a market that has not only overcome the crisis, but has evolved.
How demand has changed: the “post-pandemic” home
Covid has profoundly reshaped buyers’ preferences.
- More space and quality of life
Today, homes must meet new needs:
- larger living spaces,
- outdoor areas (balconies, gardens),
- dedicated rooms for remote working.
This has driven demand toward:
- urban suburbs,
- second homes,
- tourist and rural destinations.
In 2024, for example, there was a notable increase in interest in second homes and investments from international buyers.
- The smart working boom and its impact on offices
Hybrid working has reduced demand for traditional office spaces, especially outdated ones.
In 2025:
- the office sector recorded around €2 billion in investments,
- with a -6% decline compared to the previous year.
At the same time, conversions are increasing:
offices → residential
offices → student housing or hospitality
- New asset classes: logistics, hospitality and student housing
The post-Covid era has accelerated several existing trends:
- Logistics: +29% in 2025, driven by e-commerce
- Hospitality: approximately €2.4 billion (+20%), thanks to the return of tourism
- Student housing and living: +51%, with volumes doubling
These are now considered among the most dynamic and resilient segments.
The role of investors: more international and more selective
Another key post-pandemic effect is the return of foreign capital.
In 2025:
- around 60% of real estate investments in Italy came from international investors.
Today’s investors are looking for:
- high-quality (“prime”) assets,
- strong and attractive cities,
- sustainable (ESG) projects.
It is no coincidence that Milan ranks among the top European cities in terms of real estate attractiveness.
Prices and market: more balanced growth
Unlike in the past, price growth is now more moderate but stable:
- +3.1% in 2025,
- forecast above +4% in 2026.
This reflects:
- a better balance between supply and demand,
- the impact of interest rates,
- greater selectivity among buyers.
What Covid has really left behind
Covid has not only influenced the real estate market—it has redefined it.
The 5 main legacies:
- The central role of the home as a multifunctional space
- Urban decentralization toward suburbs and smaller cities
- New real estate asset classes (student housing, logistics, hospitality)
- Greater focus on quality and sustainability
- A more global and competitive market
Conclusion: a stronger (and different) market
Today, the post-Covid real estate sector appears more dynamic, diversified and resilient.
After an unprecedented crisis, Italian real estate:
- has returned to growth,
- has attracted new capital,
- has evolved its offering.
And above all, it has learned to adapt quickly to social changes.
The result?
A less predictable market, but one that is far richer in opportunities.