A growing trend in wealth that is reflected in the luxury property market, which in Italy sees no crisis despite geopolitical scenarios and economic uncertainties. This is demonstrated by the constant interest of investors, not only Italians but above all foreigners, who not only still see real estate as the refuge asset par excellence, but also find in our cities of art and in the most prestigious tourist resorts, residences that are no longer just for holidays, but also places to live in for long periods of the year.

The key trends that are driving purchase decisions and industry dynamics among buyers and investors of luxury residences are seeing a strong increase in demand for those properties considered Trophy Assets, i.e. true ‘trophy purchases’ because they consist of exclusive properties located in unique and often historic locations.

However, artistic value must also be combined with comfort and security, i.e. the presence of technology, making homes ‘smart’, and advanced security systems combined with soundproofing and landscaping to create an exclusive and safe environment for residents.

Another important trend for luxury home buyers is the growing concern for environmental sustainability, and we see that the presence of sustainable practices not only reduces the carbon footprint, but also increases the overall value and attractiveness of the property, while amenities such as swimming pools, or wellness areas, aim to promote a healthy and balanced lifestyle. This is all part of a vision of ‘circular luxury’, a sustainable and responsible approach in the luxury industry that aims to reduce the use of natural resources, minimise environmental impacts and promote durability.

Having archived the Pandemic, buyers of luxury residences find themselves evaluating their investments by confronting high interest rates and construction costs, yet we have seen the sector show concrete and stable signs of growth.

Rome is becoming the ideal destination for the super-rich, also thanks to the presence of two international airports and the redevelopment of the city for the Jubilee in 2025. But it is also chosen for the quality of life and the opportunities it offers to combine one’s professional activity with cultural, sporting and gastronomic experiences.

And precisely because those looking for luxury residences also have experience as an objective, turnkey properties, or properties where third parties take complete care of the renovation and maintenance, are preferred. This is because luxury is also understood as time management and therefore fully renovated properties are perceived and sought after because they allow buyers to save time and effort, i.e. make it easier to live in a house abroad for shorter or longer periods during the year.

But among the many attractions of Italy, one should also consider the tax advantages of the flat tax, aimed at foreign buyers intending to purchase a luxury property on Italian territory.

The Italian tax system, through the flat tax, allows those with very high incomes from abroad to pay a flat tax of 100,000 euros per year, plus an additional 25,000 euros for each family member. The results of this tax policy seem to be remarkable, when the flat tax was introduced in Italy in 2017, only 98 people took advantage of this tax regime, however, the number has steadily grown to 549 individuals in 2020 and 1,339 in 2021, according to official data from The Guardian.

These benefits have attracted many residents from countries that have a higher tax burden than ours, such as Great Britain, but it does not only attract wealthy individuals, it also helps to stimulate investment from luxury brands that are interested in specific areas of each city.