A Private Holiday Homeowner’s Insight Guide ~ Italy
by azulomo | 8 min read
A Private Holiday Homeowner’s Insight Guide
Italy’s Holiday Rental and Tourism Market in 2025
Italy holds a timeless appeal—whether it’s the sun-drenched countryside, the slow rhythm of village life, or the sense of beauty woven into everyday moments. In 2025, that allure remains strong, but travellers are changing how they experience it. They’re staying longer, exploring beyond the well-worn tourist trails, and seeking places that feel more personal and authentic.
This shift opens exciting doors for private holiday home owners. From hilltop farmhouses to coastal cottages, guests are craving homes with character, comfort, and a true sense of place. At the same time, evolving regulations and guest expectations mean hosting today requires more clarity, compliance, and care than ever before.
Guests no longer want generic accommodation—they’re seeking emotional connection, sensory calm, and spaces that feel considered. A well-placed ceramic bowl or a view framed by old shutters now speaks louder than any long list of amenities. Hosting in Italy isn’t about luxury in the traditional sense—it’s about story, soul, and simplicity done well.
This guide unpacks the key trends shaping Italy’s tourism and short-term rental market in 2025—what guests want, where the opportunities lie, and how you can stay ahead in a market that values meaning as much as money.
In Italy’s slower era of travel, it’s not the flashiest homes that thrive—but the ones that feel lived in, loved, and full of quiet story. Hosting with heart is the new competitive edge.
Italy’s holiday rental market in 2025 is being shaped by two powerful shifts: the return of confident global travel and a deeper change in what guests are looking for. Travellers aren’t racing through Italy anymore—they’re slowing down, staying longer, and seeking emotional connection. That’s leading them away from crowded hotspots and toward quieter villages, coastal towns, and rural landscapes where life moves more gently and spaces feel more personal.
With renewed demand comes greater responsibility. Regulations are tightening across the country—national laws now require every short-term rental to be registered, some cities are capping new licenses, and booking platforms are enforcing compliance. Meanwhile, guests have become more discerning. It’s not enough to offer clean sheets and good Wi-Fi. They want comfort, character, and a sense of soul.
For holiday homeowners, this isn’t a time to pull back—it’s an opportunity to lean in. Whether you’re launching your first stay, reviving a family property, or considering an investment in Italy, 2025 is full of potential for those who approach hosting with thoughtfulness and intention. The homes that thrive are the ones that feel considered, not just commercial.
This overview offers a clear, grounded look at where the market is going—from travel patterns and guest behaviour to occupancy, yields, pricing, and legal requirements. It’s designed to help you make confident, human decisions about how—and why—you host in Italy today.
1. Tourism Demand & Visitor Numbers
Italy remains one of Europe’s most visited countries in 2025—and it’s not slowing down. In 2024, the country welcomed an estimated 68.5 million international visitors, with numbers expected to grow modestly this year as global travel continues its full recovery (ISTAT, 2024). Total overnight stays across all tourist accommodation types reached 458.4 million—a 2.5% increase from 2023 (ISTAT, 2024). Of those, over 250 million were from international tourists, with non-resident visitors making up 55% of all stays (ISTAT, 2024).
What’s more telling is how people are travelling. Guests are increasingly booking longer stays, with the average short-term rental length now at 4.8 nights, up from 4.3 in 2019 (AirDNA, 2025). Tourists are still drawn to the icons—Rome, Florence, Venice—but many are now venturing into quieter, culturally rich regions like Puglia, Umbria, Sicily, and the Dolomites in search of deeper, less hurried experiences (Booking.com Travel Report, 2025).
→ What this means: Today’s traveller wants more than a place to sleep—they want a place to slow down, reconnect, and feel something. Homes in rural or lesser-known areas are rising in appeal, especially those offering comfort, beauty, and a sense of calm.
2. Short-Term Rental (STR) Market Trends
Italy’s short-term rental sector continues to grow in 2025, with over 250,000 active listings across the country (AirDNA, 2025). Unlike more uniform hotel experiences, Short Term Rentals (STRs) in Italy offer a wide variety—from stylish urban apartments to historic countryside retreats.
The strongest growth is being seen in guest interest for design-led homes that reflect their region, properties in rural destinations, and longer, slower stays that blend holiday and lifestyle. The average booking now lasts nearly 5 nights (AirDNA, 2025), with more guests choosing to stay in one place, live like a local, and work remotely when needed.
→ What this means: Holiday homes with emotional appeal—natural textures, warm light, thoughtful details—are standing out more than ever. Guests want to feel something when they walk in. A curated, calm, and well-maintained space is now your greatest asset.
3. Rental Yields & Occupancy
In 2025, gross rental yields in Italy range from 3.5% to 6% annually, depending on location, home quality, and how well the experience is managed (Idealista, 2025). Tourist-heavy cities like Florence, Milan, and Rome tend to command higher nightly rates, but countryside and coastal homes can perform just as well in peak seasons.
Occupancy rates in prime regions such as the Amalfi Coast, Lake Como, and parts of Tuscany often reach 75%–85% during spring and summer (AirDNA, 2025).
A well-located apartment in Florence, for example, valued at €400,000, can typically generate around €20,000–€24,000 gross annual income. In the Amalfi Coast, a luxury villa with design appeal can command €400–€1,200 per nightduring high season.
→ What this means: Profitability isn’t just about location—it’s about how your home makes guests feel. The properties earning the most are not always the biggest or newest—they’re the most intentional.
4. Property Prices & Investment Hotspots
Italian property prices are appreciating steadily in 2025, especially in areas where lifestyle and tourism overlap. Prime city-centre homes in Rome and Milan now average €6,000–€8,000 per m², while Florence sits at around €4,500–€6,000 per m² (Idealista, 2025).
But many buyers are looking elsewhere—for space, story, and value.
Puglia: €2,000–€3,500 per m² for renovated trulli or masserias (Idealista, 2025)
Sicily: €1,500–€2,800 per m² in coastal towns (Idealista, 2025)
Dolomites: €4,000–€7,000 per m² for ski chalets and alpine homes (Idealista, 2025)
→ What this means: Rural and coastal homes that combine local charm with thoughtful renovation are increasingly in demand. If you’re considering investing, now is the time to look beyond the obvious—and choose a region you genuinely connect with.
5. Regulations & Licensing
Italy’s Short Term Rentals (STR) regulations became significantly stricter in 2025. All short-term rentals must now be registered with a Codice Identificativo Nazionale (CIN)—a unique ID number that must be displayed on all listings and advertisements (Gazzetta Ufficiale, 2025).
Municipalities—especially in cities like Venice, Florence, and Rome—have begun limiting the number of STR licenses in historic centres and high-demand areas. In some zones, new licenses are now capped or require special permits to curb “over-tourism” and protect housing supply. Non-compliance can result in fines of up to €20,000 and removal from major platforms such as Airbnb or Booking.com (Il Sole 24 Ore, 2025).
→ What this means: If you already operate legally, you’re in a strong position. If you’re buying or launching a new STR, do your research, check municipal rules, and register correctly. Regulation isn’t going away—and professionalisation is the future.
6. What Guests Want in 2025
The 2025 traveller isn’t chasing status—they’re seeking stillness. The most successful holiday homes aren’t just photogenic—they’re personal, calming, and beautifully considered.
Guest priorities this year include:
Private outdoor space with views
Light-filled rooms and warm textures
Reliable Wi-Fi (especially for remote workers)
Local food, personal tips, and authenticity
Sustainable choices that feel simple, not forced
(AirDNA, Booking.com, 2024)
→ What this means: Your home doesn’t need to be lavish—but it does need to feel loved. A well-placed ceramic mug, a handwritten welcome note, a sense of flow—these things now matter more than ever. Emotion is your new competitive edge.
7. Market Outlook for Holiday Home Owners
Italy’s Short Term Rental (STR) market in 2025 is full of potential—but success now requires more than a beautiful property and a listing. The travel landscape is shifting from mass tourism to meaningful tourism. Guests are seeking connection, calm, and a sense of belonging—and the homes that meet those emotional needs are rising above the rest.
The biggest winners in 2025 are:
Hosts who design spaces that feel considered, not commercial
Owners who stay on top of legal requirements and adapt to local rules
Properties in emerging regions that offer rest, not rush
Listings that speak to emotion, not just amenities
→ What this means: Hosting in Italy now takes more than a good location—it takes presence, planning, and emotional intelligence. It means understanding how your guests want to feel, not just where they want to stay. The most successful hosts are the ones who design from the heart but think with strategy. And for those who get it right, the rewards go far beyond profit. You’re offering something that stays with guests long after they’ve gone home.
And beyond 2025? The trend toward slower, experience-driven travel is only deepening. Regulatory frameworks will continue to evolve, rewarding compliant, guest-first hosts. Demand will keep shifting toward rural and secondary regions, and emotional design will become a new standard—not a niche. Sustainability, storytelling, and soulful hosting will define the next generation of standout stays. The future of hosting in Italy belongs to those who understand that hospitality is more than service—it’s a feeling. One that starts the moment a guest sees your home, and lingers long after they leave.
In Summary ~ What the Numbers Really Mean: A Look at Italy’s 2025 STR Market
In 2024, around 68.5 million international travellers visited Italy (ISTAT, 2024). That’s a huge number—but what’s more important is how they’re choosing to travel. Many of these visitors aren’t racing from city to city anymore—they’re settling into a single region and staying longer, seeking more meaningful experiences.
Italy recorded an astounding 458.4 million overnight stays in 2024 across all types of tourist accommodation—from hotels to holiday rentals to agriturismos (ISTAT, 2024). That’s not just a return to form after the pandemic—it’s a sign that people are staying longer and spending more. And with 55% of these stays coming from international guests (ISTAT, 2024), there’s clearly still strong global interest in what Italy has to offer—especially from travellers looking for beauty, culture, and calm.
There are now more than 250,000 active short-term rental listings in Italy (AirDNA, 2025). That includes everything from minimalist mountain cabins to lovingly restored trulli, meaning the market is competitive—but still full of opportunity for those who offer something unique and personal.
The average stay length has increased to nearly five nights (AirDNA, 2025). This is a big shift. Guests are no longer just booking quick weekend escapes—they’re taking real breaks, working remotely, and choosing homes that feel liveable, not just like temporary accommodation.
In terms of income, gross rental yields range between 3.5% and 6%, depending on your property’s location, condition, and how well it’s managed (Idealista, 2025). That means if your holiday home is worth €300,000, you might expect to generate around €10,500–€18,000 per year before costs. It’s not “get rich quick,” but with the right design and guest experience, it can be a sustainable, rewarding business.
Occupancy rates during peak season (spring through early autumn) typically range from 75% to 85% for well-run homes in popular regions like the Amalfi Coast, Lake Como, and inland Tuscany (AirDNA, 2025). That’s a strong performance—and an encouraging sign that travellers continue to favour short-term rentals over more impersonal options.
If you’re buying or renovating, prime property prices range from €3,000 to €8,000 per square metre in major cities and coastal hotspots (Idealista, 2025). While places like Rome and Florence command the higher end, there’s still excellent value to be found in up-and-coming regions like Puglia, Sicily, and the Dolomites.
Crucially, all STRs in Italy are now required to have a Codice Identificativo Nazionale (CIN)—a unique national ID number that must appear on your listings and rental advertisements (Gazzetta Ufficiale, 2025). This system is part of a broader push for transparency and professionalisation.
Fines for non-compliance can reach up to €20,000, and platforms like Airbnb and Booking.com are under pressure to delist any homes that aren’t registered properly (Il Sole 24 Ore, 2025). In other words—this isn’t the year to “wing it.” Compliance matters more than ever.
—
One Wave at a Time...
Italy is still Italy—timeless, textured, and steeped in beauty. But in 2025, hosting here is no longer about simply having a home in the right place. It’s about intention. About how you welcome people in. About how your space feels the moment they open the door. This is a year that rewards thoughtfulness. If you design with soul, keep your paperwork in order, and understand the emotional journey of your guest—you won’t just stay booked. You’ll become part of someone’s memory.
So whether you’re restoring a family farmhouse in Umbria, adding soft linen touches to a lakeside escape, or dreaming up your first guest-ready space—do it with presence. Do it with story. And trust that when you host with heart, the bookings will follow.
At azulomo, we believe slow is not the opposite of success—it’s the strategy. One soulful stay at a time. One wave at a time.
“Italy’s holiday rental market is evolving—fast. Guests are staying longer, spending smarter, and choosing spaces that feel soulful, not staged. For homeowners, this isn’t about scaling for the sake of it—it’s about creating homes that resonate. From regulation to design, profitability now lies in clarity, care, and emotional connection. If you lead with purpose and host with heart, there’s still plenty of room to thrive—quietly, intentionally, and beautifully.”
