Residential Real Estate News
Tuscany's Property Boom Driven by Wealthy Foreign Buyers
France, the United States and United Kingdom are top feeder markets
The Italian city of Lucca has emerged as a top performer in Tuscany's luxury real estate market, with property prices soaring 27% over the past five years, according to a new report from global property consultancy Knight Frank. The surge, attributed to Lucca's relative affordability and growing international demand, outpaces other Tuscan hotspots and highlights a broader trend of rising interest in Italy's prestigious property markets.
Tuscany remains a magnet for wealthy international buyers, particularly from France, the United States, the United Kingdom, Benelux countries, and Germany. These high-net-worth individuals (HNWIs) are drawn by the region's superior quality of life, educational offerings, and ease of access to global transport hubs.
Government incentives are also playing a pivotal role. Italy's flat tax regime, reduced registration fees for primary residences, and the "Return of the Brains" program--which encourages expatriate professionals to relocate--are helping to fuel investment and relocation decisions among ultra-high-net-worth individuals (UHNWIs). As of 2025, Italy is home to 40,010 individuals with net assets exceeding $10 million, and 573 billionaires, according to The Wealth Report 2025.
Increasingly, buyers are favoring turnkey, move-in-ready homes over renovation projects, a shift influenced by global economic uncertainty and rising construction costs. High-value areas such as Siena and Val d'Orcia are also gaining popularity as buyers seek out secure, long-term lifestyle investments.
Florence continues to be a central hub, recording a 4.3% increase in property prices in the 12 months leading up to January 2025--the strongest annual growth rate in Tuscany. Meanwhile, the number of foreign residents living in Tuscany has risen by 11.2% over the past decade, according to Italy's national statistics agency, Istat.
Despite the appeal of Italy's flat tax--which has attracted around 5,000 applicants since its inception--take-up remains modest when compared to other jurisdictions. By contrast, the UK had approximately 70,000 non-domiciled residents before abolishing its non-dom tax regime in April 2025, prompting many to reassess their residency status.
As global trade tensions, tax reforms, and geopolitical uncertainty continue to shape wealth migration patterns, Tuscany's real estate market remains a sanctuary of stability, culture, and opportunity for the world's elite.
