A top destination for culture and history, Florence attracts millions of tourists each year. UNESCO declared the historic centre of the city a World Heritage Site in 1982. Noted for its culture, Renaissance art and architecture and monuments, the city is also home to a number of international schools and universities. Its relatively compact historical centre with easy access to the countryside, coupled with a range of historical properties, have long been driving international purchasers.

At the end of 2023 prime prices in the city stood at €9,600 per square metre, having increased 3.5% over the course of 2023 and 3.6% since 2019. Like many Italian markets, Florence remains significantly undersupplied, especially in the prime city centre locations which remain popular both with Italian and international buyers in the prime segment. Domestic buyers make up the bulk of the prime market, but nearly 40% are international, with the UK, the US, Germany, and France the most common source markets.

While prime residential prices continue to increase in the Tuscan capital, transactions in the market are yet to return to their pre-pandemic levels. Transactions in Florence were down -16.9% on the year and-2.8% on 2019, reflecting the limited levels of supply across the city. New developments are nearly impossible in the historic city centre where there is the highest demand, a factor that will further support price growth going forward.

As in the purchase market, limited supply across Florence is increasing rents across the city. Over the course of 2023, prime rents in the city increased 4.0% in 2023 and have grown 6.4% since 2019. The market is sustained by strong and growing demand, as well as a lack of supply.