Old properties vs. new-builds in Italy: What’s worth it when buying property?

Italy doesn’t just sell square metres. It sells atmosphere, location, history, light – and that is precisely the crux of the matter. Anyone buying a property in Italy is often not just choosing between two types of building, but between two ways of life: the old building with vaulted ceilings, patina and character, or the new build with a lift, heat pump and predictable service charges.

Both can be an excellent purchase. But both can also prove costly if you buy with your heart rather than with proper due diligence. This consideration is particularly important in Italy, where the existing housing stock dominates according to Istat, there are more than 35.6 million homes, and a large proportion of the stock is older; 3.3 million homes are even over 100 years old, whilst more than half were built between 1961 and 2000. At the same time, the latest Istat data shows that existing properties clearly dominate the market: in the residential property price index, existing homes accounted for 82.4 per cent in 2025, compared to just 17.6 per cent for new builds.

So, anyone buying in Italy is highly likely to be buying an existing property rather than a new build. And that is precisely why the question ‘old or new?’ is not a matter of style, but a fundamental economic decision.

Why older properties in Italy are so sought-after 

Older properties in Italy have an advantage that new builds can hardly ever fully replicate location and character. Whether it’s a city flat in the historic centre, a stone house in Liguria or a country house in Apulia – many existing properties are located where new builds are now virtually non-existent: in established neighbourhoods, in centres attractive to tourists or on plots of land that are genuinely rare. Added to this is the architectural substance: high ceilings, original floors, thick walls, courtyards, loggias, and sightlines. For buyers who want not just a place to live but also a property they can connect with emotionally, this is a huge plus.

Existing properties can also be attractive from an economic perspective. Because the market in Italy is heavily dominated by existing stock, the choice is much wider, and in many micro-locations, buyers simply find more advantageous opportunities in existing properties than in the scarce new-build segment. Furthermore, according to Istat, prices for existing flats rose more sharply year-on-year in 2025 than those for new-builds. In the third quarter of 2025, existing properties rose by 4.5 per cent year-on-year, whilst new-builds rose by only 1.3 per cent. This does not automatically mean that one is a better buy – but it does show where the market momentum currently lies.

The strengths of existing properties

A good older property can appear more attractive in terms of price per square metre than a comparable new build in the same region. What’s more, with existing properties, you can usually see exactly what you’re buying. The neighbourhood has developed over time, the view is real, the community is already established, and the charm doesn’t have to be promised in a property brochure. This can also be appealing to investors. In regions popular with tourists, existing properties with character can often be marketed on an emotional level more effectively than generic new builds. When it comes to letting or resale, this is precisely what can make the difference: not every property sells space – some sell a way of life.

Where buying older properties in Italy can be risky

And now for the truth: older properties in Italy are often only cheap if you ignore the follow-up costs.

The biggest risk is rarely what you can see. It is not the attractive flooring that is the problem, but what lies beneath it: outdated wiring, damp walls, structural issues, unauthorised alterations, unclear or restricted use of certain areas, poor insulation, old windows, inefficient heating systems. Added to this are the legal and technical checks. The notary’s office expressly points out that, in cases of doubt regarding compliance with town planning or building regulations, a technical certificate of urban planning conformity may be advisable. The property’s documentation should also be thoroughly checked before purchase.

This is particularly essential in older buildings, as historic properties have often been renovated multiple times over the decades – and these alterations are not always fully documented. A supposed bargain can therefore quickly become expensive if regularisations, technical improvements or extensive renovations become necessary after the purchase.

Another key factor is energy performance. In Italy, the APE – the energy performance certificate – plays a central role in sales and lettings. ENEA describes the APE as a document that certifies a property’s energy performance and class, whilst also identifying potential improvements. Poor energy efficiency in older buildings is therefore not just a matter of comfort but also affects the property’s value and marketability.

Why new-build properties convey such a sense of security 

New-build properties strike a chord with many buyers who want one thing above all else: predictability. Those who buy a turnkey property are generally getting modern building services, up-to-date construction standards, better insulation, fewer maintenance backlogs and, in most cases, fewer surprises in the early years. Added to this are practical features that are often lacking in existing Italian properties: Lifts, garages, barrier-free access, efficient floor plans, private outdoor spaces or communal facilities.

New-build properties often have a clear advantage, particularly when it comes to energy. The revised EU Energy Performance of Buildings Directive (EPBD) has been in force since 28 May 2024 and must be transposed into national law by 29 May 2026. It aims to create an increasingly low-emission building stock. Although the specific national implementation in Italy remains crucial, the direction is clear: efficient buildings will be structurally favoured, whilst inefficient ones will come under greater pressure.

Additional safeguards when buying from a property developer

An often-underestimated advantage in Italy: when buying a property from a developer – particularly one that is ‘in costruzione’ – specific safeguards apply. The notary’s office highlights legal safeguards such as the requirement for a guarantee covering sums already paid and the so-called ten-year insurance policy following completion. These safeguards are a real bonus, particularly when time elapses between the reservation, down payments and the final purchase contract. This does not automatically make new-build properties risk-free, but it does reduce certain risks that buyers of existing properties do not face.

The downsides of new-build properties

The biggest drawback is both obvious and stark: new-build properties usually cost more. Not only in terms of the purchase price, but often in terms of taxes too, as the purchase may be subject to VAT depending on the circumstances. The Agenzia delle Entrate explains: if the sale of the flat is subject to VAT, 10 per cent VAT applies – without the ‘prima casa’ tax relief; luxury properties can be subject to 22 per cent. With the ‘prima casa’ tax relief, VAT drops to 4 per cent. In addition, fixed registration, mortgage and cadastral taxes apply.

Added to this is a market risk: not every new-build ages well. Some projects appear modern in their marketing but are architecturally interchangeable. In five or ten years’ time, it will become clear whether the property was a sound investment – or merely an expensive sales pitch.

And finally, there is the question of location. Those who are determined to live right in the heart of the historic centre will rarely find genuine new-builds there. New builds are often located on the outskirts of established centres, in development areas or in modernised neighbourhoods. That’s not a bad thing – but it is simply a different product.

Cost comparison 

The difference quickly becomes apparent here 

When comparing costs, many buyers make the mistake of looking only at the list price. However, it is the total bill that matters. 

When buying from a private individual or a company selling VAT-exempt property, registration tax is generally payable in Italy. Without the ‘prima casa’ benefit, this is 9 per cent; with ‘prima casa’, it is 2 per cent. On top of this, there are fixed mortgage and cadastral taxes of 50 euros each. In contrast, different rules apply to a purchase from a company subject to VAT: with ‘prima casa’, 4 per cent VAT; otherwise, usually 10 per cent, plus registration, mortgage and cadastral taxes of 200 euros each. 

In practical terms, this means: a new build may appear more modern and ‘carefree’ in terms of purchase price but initially place a heavier tax burden on the budget. An older property purchased from a private seller, on the other hand, may prove cheaper in terms of incidental purchase costs – at least at first glance. 



Ongoing and subsequent costs

Then comes phase two: the costs following the notary appointment. 

For older properties, these often include:

• technical modernisation,
• roof, façade, pipework, windows, 

• heating system replacement, 

• energy efficiency upgrades, 

• possible communal charges for older apartment blocks, 

• time investment, planning, permits and coordination. 



With new builds, the initial costs are often more concentrated, and the subsequent costs tend to be easier to plan for. That is the real economic advantage of new builds: not necessarily the lower overall price, but the lower variability. 



How much does a renovation cost in Italy?

A sensible answer is: it depends heavily on the condition, location, standard of materials and extent of the work. Market-based estimates from Italian property portals for a comprehensive renovation often range roughly from around 1,000 to 1,300 euros per square metre and can be significantly higher for complex projects. Such figures are only guidelines, but they show how quickly a supposedly cheap old property can end up costing a fortune.

A calculation example: anyone buying a 100-square-metre old property and then carrying out a comprehensive renovation may quickly find themselves having to invest an additional 100,000 euros or more – without any special requests, construction delays or surcharges due to listed building status. This often brings the cost very close to that of a good new-build property.

 Energy efficiency

In Italy, this is not a side issue, but a key factor driving prices. 

Energy efficiency is no longer merely a green bonus. It is a hard market parameter. ENEA uses the APE as the central tool for classifying energy efficiency. At the same time, studies by the Banca d’Italia show that energy-efficient properties in Italy command a significant price premium on average: According to the study, the most energy-efficient houses command a price premium of around 25 per cent compared to the least efficient ones.

That is enormous. It means that anyone buying a charming but energy-inefficient old property today must not only expect higher running costs, but also a potential reduction in market value.

What this means in practice for old and new buildings

In new builds, good energy efficiency is now usually part of the product. In older buildings, it’s a project. And projects cost money, time and nerves.

This need not be a counterargument – quite the contrary. Anyone who buys an old building wisely and carries out targeted energy improvements can build up value. This is precisely why tax incentive schemes continue to exist in Italy. The Agenzia delle Entrate refers to ongoing tax relief for renovations; at the same time, ENEA imposes reporting and documentation requirements for certain energy-related measures. The ENEA portals will be active for 2025 and 2026. 

However, it is important to note subsidies do not replace a cost-benefit analysis. Anyone undertaking a renovation should not build fantasy budgets inflated by bonuses but should calculate conservatively.

Renovation vs. Turnkey

The real difference is not style, but lifestyle. 

Ultimately, the choice between an old building and a new build is often decided not by the property itself, but by the buyer. 

Renovation suits people who want to create, have patience and, in return, seek individuality. Those who enjoy turning a rough diamond into something of their own can make excellent purchases in the Italian property market. This is particularly true when the location, floor plan and building fabric are strong and the technical issues remain manageable.

Turnkey properties suit buyers who wish to use, let or move into the property immediately. Those who do not want to manage a building site,

When renovation is the better choice

Renovation is particularly worthwhile when three factors come together: an excellent location, a reasonable purchase price and technically manageable work. If you are buying in a historic centre, a sought-after coastal location or a property with strong emotional appeal, an older building may be the better investment despite the need for refurbishment – because what you create cannot be replicated. 



When turnkey is the clear winner

A new build is the better choice if budget discipline, energy efficiency, low initial risks and immediate usability are the main priorities. Foreign buyers or investors, who are not permanently on site, often underestimate the operational complexity of a renovation in Italy. A turnkey property not only saves you financial risks here, but above all management risks.

Conclusion 



So, which is more worthwhile when buying property in Italy: an older property or a new build? 

The honest answer is: an older property is worthwhile if you are buying location, charm and potential for appreciation – and can professionally manage the renovation risks. A new build is worthwhile if you prioritise security, energy efficiency and predictable total costs.

Those who focus on emotion, uniqueness and micro-location will often find the stronger product in an older property. Those who look for comfort, sustainability and predictable running costs are usually better served by a new build.

My professional advice is therefore clear: in Italy, never buy just the picture in the property brochure. Buy the full package. For older properties, this means: a detailed technical, legal and energy efficiency assessment. For new builds, this means: objectively comparing the purchase price, taxes, developer quality, location and resale potential.

Because in the end, it is not the more romantic purchase that wins out, but the one that still makes economic sense in five, ten or fifteen years’ time.