A Multi-Criteria Rating Model for Evaluating the Attractiveness of Medium-Sized Italian Cities

Medium-sized cities in Italy are becoming more attractive to private investors. This is due to their stable economic growth, less saturated markets, and improving infrastructure. However, to understand their real investment potential, a structured method is needed, one that considers economic, social, and governance aspects together. Most existing urban rankings are not designed for investors. They often do not include flexible weighting systems or clear criteria that reflect investment needs. In addition, they rarely offer a multi-criteria approach that allows a fair comparison between different cities. This study presents a Multi-Criteria Rating Model based on the Multi-Attribute Value Theory (MAVT), developed to evaluate the attractiveness of medium-sized Italian cities for private investors. The method follows a structured process that considers different points of view, including economic performance, infrastructure, education, welfare, demography, real estate, and tourism. These aspects are measured with indicators and weighted using expert opinions to reflect investor preferences. The data is then normalized through value functions to allow comparisons between cities. Finally, a City Attractiveness Index (CAI) is calculated by combining the weighted scores. By including several important issues related to attractiveness in one transpar- ent framework, this tool helps investors compare cities and make better decisions based on their investment goals.