In 2024, the Tuscan real estate market recorded a +1.5% increase in property investment and a +7.6% growth in the last quarter alone. Demand for primary residences is increasing, driven by lower interest rates. In Lucca and Versilia, prices remain high, with strong interest in tourist-oriented properties. Short-term rentals are still a profitable option, while the scarcity of properties for sale affects the availability of long-term rental solutions.
2025 is shaping up to be a year of consolidation, with positive prospects if European monetary policy continues on its path of interest rate reductions.
These insights come from the “FIAP Monitora” report, presented by the regional FIAIP board at the Presidency of the Tuscany Region at Palazzo Guadagni Strozzi Sacrati in Florence, during a press conference attended by the President of the Region, Eugenio Giani, and the national FIAIP President, Gian Battista Baccarini.
Rising Sales and Mortgages
The main boost is coming from mortgages, which grew by 10% in 2024 thanks to repeated interest rate cuts by the European Central Bank. This has made it easier to buy a first home, encouraging both residents and investors to invest in real estate. The renewed confidence has significantly shortened the average sale time, now between 3 and 6 months—a trend expected to continue in 2025.
Growing Demand, Limited Supply
Despite a dynamic market, a structural issue remains: the shortage of quality housing. Demand for modern, functional homes far exceeds supply, putting upward pressure on prices. Urban planning policies in recent years, aimed at protecting the landscape, have limited new construction and made it difficult to meet housing needs—especially in cities and high-demand areas.
Many large properties, often outdated and in need of major renovations, remain outside the buying and selling circuit. A reform focused on upgrading the existing building stock could be a strategic solution, balancing supply and demand while offering new opportunities for buyers and boosting the construction sector.
Short-Term Rentals vs Long-Term Leases
The rental market remains a hot topic, particularly in tourist cities. The growing popularity of short-term rentals has further reduced the availability of properties for long-term leases, making it harder for many families to find affordable housing. However, new regulations aimed at curbing tourist rentals risk favoring large real estate operators at the expense of small property owners.
Meanwhile, top tourist destinations such as Versilia and the Pisa coastline saw an extremely high booking rate during the summer season. Even in the outskirts of Pisa and Lucca, short-term rentals yielded returns of over 10–15% of the property’s value, confirming their profitability for property owners.
Prices and Outlook for 2025
In the province of Lucca, average prices range between €1,500 and €1,600 per square meter, with Versilia holding the highest prices (around €2,700/sqm) and Garfagnana the lowest (about €850/sqm). The upward trend in prices could continue into 2025, particularly if no structural measures are taken to increase the supply of available properties.
In this context of overall growth, 2025 is expected to be a year of consolidation, pending confirmation of European monetary policy on interest rates. For those considering an investment, the market still offers good opportunities—but it remains essential to rely on industry professionals to identify the best solutions and keep pace with current trends.
Real estate in Tuscany confirms itself as a solid choice, both for those purchasing a first home and for those investing in long-term property opportunities.
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