International uncertainty, new opportunities, and evolving scenarios: Italy’s luxury real estate market is transforming, influenced by U.S. President Trump’s tariff announcements. These recent protectionist policies could reshape global economic dynamics, opening up new opportunities for those seeking secure and valuable investments in the heart of Europe.
In Italy, a land of unparalleled history, art, and lifestyle, luxury real estate proves to be a solid, resilient, and highly attractive asset for international capital. We talked in our Dreamer Magazine about how Italy is the Ultimate Destination for American Expats after Trump’s election as president.
How do Trump’s Tariffs Affect the Luxury Real Estate Market in Italy?
Foreign investors, Americans in particular, and real estate operators are trying to understand how US protectionist policies can influence investments and property prices in Italy.
Trade tensions triggered by the Trump administration’s imposition of tariffs on imports are causing a general rise in construction costs.
In the U.S., new homes are estimated to increase by about $9,200 due to rising costs for steel, copper, and aluminum.
However, in Europe, the high-end segment relies on premium local materials and artisanal construction techniques, maintaining its attractiveness. In Italy, the luxury real estate sector may be affected by these price hikes, pushing builders toward more refined and sustainable solutions to maintain the perceived value of luxury properties.
Luxury Real Estate as a Safe-Haven Asset
According to experts, Italian luxury real estate is still a prime safe-haven asset. While the global economy faces tension, assets like historic villas, noble palaces, and prime residences are tangible symbols of wealth and security.
Investing in Italy today means protecting one’s wealth and heritage by embracing an unparalleled cultural legacy. Even in the tariff era, institutional investors privilege trophy assets and prime properties, knowing that scarcity and excellence guarantee value over time.
The Italian residential market has a key external driver: foreign buyers. In recent years, foreign investors have shown growing interest in properties in Italy, attracted primarily by the high quality of life. Americans, in particular, have taken first place among the most active nationalities, representing nearly 30% of all property inquiries in 2024. This preference is driven by factors like the flat tax and tax incentives for wealthy new residents.
The Outflow of UHNWI Capital to Europe
Recent data reveals a significant outflow of capital from U.S. ultra-high-net-worth individuals (UHNWI) to European and Asian real estate markets. The ultra-wealthy are flowing out of the U.S., fueling rising demand for exclusive assets.
The European real estate market – particularly in Italy – continues to attract institutional investors who see prime properties as an essential class for building resilient portfolios.
Demand is focused on trophy assets, historic residences, and properties in exclusive locations, where value is guaranteed by rarity and steady international interest.
A New Luxury Rush? Short-Term Outlook
While the Italian residential market may experience a slight initial slowdown due to global uncertainty, the luxury sector remains resilient and ready to rebound, favored by possible monetary policies and new incentives for purchasing. The long-term outlook remains optimistic: buying now may be a strategic move for those looking to secure unique properties under still-favorable conditions.
In a market that rewards expertise, vision, and the ability to interpret global signals, Dreamer Real Estate presents itself as the ideal partner for those looking to invest with security and foresight. With an exclusive selection of Italy’s best properties, tailored services, and in-depth knowledge of the international market, we guide our clients to the best investment and wealth-building opportunities.
Discover our exclusive listings in Italy and contact us for a private and custom consultancy.
