House prices: slow but steady growth

In 2025, housing values in Italy continue to rise, albeit at a moderate pace: the average annual increase is projected at +1.4%, with positive forecasts for the following two years (2026–2027) around +1.5% per year.

Growth drivers:

• The existing homes market is the main driver, more than new constructions: renovations, energy efficiency, and well-served locations are becoming key factors for buyers and investors.

• Energy efficiency and sustainability features of properties play an increasingly important role, both due to ongoing tax incentives and long-term energy consumption, which directly affects running costs.

• Areas with good access to services (public transport, infrastructure, schools, green spaces) are more in demand: proximity to urban hubs and amenities helps maintain or increase property values.

Recent trends in average values:

• The average asking price for residential properties for sale is around €2,089/sqm in Q1 2025, up +2.9% compared to the same period of the previous year.
  Source: Immobiliare.it

• The average listing price of a property has risen to approximately €250,536, +3.5% year-on-year.
  Source: Immobiliare.it

• Demand is increasing: in Q2 2025, demand for properties for sale grew by +12.6%, while supply began to contract slightly (-0.5%) — creating upward pressure on prices.
  Source: DELLE VITTORIE House Trading

Challenges and opportunities:

The outlook remains positive but cautious: rising interest rates, material costs, and regulatory requirements linked to energy efficiency may slow down expansion.

For investors and buyers, focusing on already renovated properties or those with strong renovation potential, in well-connected areas, can deliver greater value and resilience in the medium term.

Sources: Various 2025 reports on the Italian real estate market (Idealista, Immobiliare.it, Nomisma, Agenzia delle Entrate/OMI Observatory). In particular, data on average unit prices and annual changes are drawn from the Osservatorio Immobiliare / Idealista / Immobiliare.it report for Q1 2025.