Italy: A Public Law: Zoning & Planning Overview

Italian Zoning and Planning in a Nutshell

Focus on urban regeneration

Urban regeneration remains a strategic priority in Italy, guiding territorial development towards sustainable models, limiting land consumption and valorising a large but often obsolete building stock. In this context, the restoration, redevelopment and reuse of existing structures provide a viable alternative to traditional expansion, generating both economic and social benefits.

From a regulatory standpoint, the sector is undergoing significant evolution. A draft law on comprehensive urban regeneration is currently under parliamentary review, aiming to overcome legislative fragmentation, establish a national framework and clarify the division of responsibilities across different levels of government, in line with ongoing revisions to the Consolidated Building Code. These regulatory developments are complemented by strengthened financial and incentive mechanisms, largely funded through the National Recovery and Resilience Plan (Piano Nazionale di Ripresa e Resilienza – PNRR) and budgetary provisions. Key measures include tax incentives for building renovation and energy efficiency, as well as procedural simplifications in urban planning and construction permits.

Overall, these initiatives pursue interconnected objectives: reducing land consumption, promoting the reuse of existing buildings, enhancing urban design and architectural quality, improving structural safety and energy performance, and supporting social and territorial cohesion.

Town planning trend

Data centres

The global data centre industry is experiencing explosive growth, fuelled by the formidable demand for digital services. According to research by the Data Centre Observatory at Politecnico di Milano, EUR7.1 billion was invested between 2023 and 2025 for the construction, commissioning and equipping of new data centres with IT infrastructure; however, this represents only 68% of the EUR10.5 billion estimated in 2023 for the same period. The delay in investments is particularly concentrated among new international operators, who made forecasts without fully considering the regulatory complexities and authorisation timescales of the national context, leading to delays in the implementation of projects.

For the three-year period 2026–28, 83 new infrastructure projects have been announced by 30 companies, including 19 new entrants, with a total potential value of EUR25.4 billion. However, 72% of the investment is attributable to new international operators not yet active in Italy, with timelines that could be extended due to the lack of a standardised approval process.

It should be noted that the government recently introduced Decree-Law No 21, on 20 February 2026 (Decreto Bollette), which establishes a single authorisation procedure for the construction and expansion of data centres. Data centres should be completed within ten  months of the documentation being verified; the aim is to simplify, co-ordinate and reduce regional disparities.

Hospitality industry

According to 2025 data, the hospitality sector remains one of the most attractive segments for property investors in Italy, with a significant acceleration in growth compared to 2024. According to an analysis by Dils, investments in this industry reached almost EUR2.4 billion in 2025 (increase of 30%).

According to Dils’ report, the hospitality industry ranks as the second most attractive asset class for capital, behind a booming retail sector (commercial property) and ahead of other traditional sectors. In 2026, the Italian hospitality industry is expected to continue to experience solid overall tourist demand and opportunities for value creation for owners, operators and investors. In fact, according to the European Hotel Investor Compass, Italy is the most attractive destination in Europe for hotel investments in 2026, with a score of 4.2 out of 5, ahead of the Iberian Peninsula (4.1) and France (3.6).

According to the EY Italy Hotel Investment Report 2025, investments are concentrated in Rome, Milan, Venice and Florence (55% of the total), with Rome leading (EUR630 million, 25%), driven by luxury transactions. Milan and Venice remain highly attractive (16% and 10%, respectively), while the resort segment accounts for EUR822 million (33%), focused on exclusive destinations such as Capri, Lake Como and Forte dei Marmi.

Lastly, regulation is essentially stable and well-established, even if is characterised by specific features and variations in application resulting from the legislative and regulatory powers vested in the individual regions.

Student housing

Italy has seen a steady increase in international students, particularly in major cities like Milan, Rome, Florence and Bologna. The results from Colliers Italia’s PBSA Snapshot 2026 show that investments in this sector reached EUR520 million in 2025, a 63% increase on the previous year, and for the first time accounted for 51% of the sector’s total volume. Over 90% of investment comes from abroad, particularly from the Eurozone and North America. The report highlights that this growth is underpinned by solid structural demand, driven by the appeal of the Italian university system.

Recently, following the revision of the PNRR, and in accordance with the agreement entered into with the Ministry of Universities and Research, incorporated into the 2026 Budget Law, Cassa Depositi e Prestiti S.p.A. published a call for applications aimed at awarding non-repayable grants for the provision of new beds for student accommodation.

The call for proposals forms part of the implementation framework of the PNRR and, in particular, implements a new initiative known as the “Fund for Student Accommodation”, financed under the European Next Generation EU programme, with a total budget of EUR599 million. Furthermore, it is important to note that in Milan, as in London in 2012, Olympic venues will be converted into student housing.

Logistics

According to Scenari Immobiliari’s report (Rapporto 2025 sul mercato immobiliare della logistica), in Italy, logistics is a key asset in the market, accounting for EUR1.75 billion, or 17.5%, of total property investments – up 2.9% on 2023. The appeal was confirmed in the first few months of 2025, with EUR650 million in investments.

This expansion has been driven by the growth of e-commerce and the shift towards increasingly efficient and integrated supply chain models, which have led to a significant increase in demand for logistics space. In this context, the redevelopment of so-called brownfield sites – that is, disused industrial areas – takes on particular importance, representing a significant development opportunity.

Logistics, therefore, plays a key role in urban regeneration policies, given that projects increasingly focus on large brownfield sites, which offer increasingly attractive opportunities thanks to their zero-land consumption footprint. In major urban centres, the reuse and regeneration of commercial and industrial properties is the new challenge facing logistics property development.

Future challenges for Italian zoning and planning

Urban planning and construction in Italy currently stand at a historic crossroads: not only does the availability of public and private resources offer new opportunities for regeneration, but regulatory and operational challenges still remain a risk in terms of slowing down project implementation.

Among the main challenges is the transition to zero land take. Italy has brought forward the European 2050 target to 2030, making the reuse and regeneration of existing buildings necessary. This concerns not only brownfield sites, but also large swathes of obsolete residential buildings and public properties.

In light of the current situation, the success of urban regeneration will depend on Italy’s ability to translate available resources into concrete, implementable projects through clear regulations, simplified procedures and effective collaboration between the public sector and private capital, in order to ensure more sustainable, safe and high-quality cities.