Italy’s property market is showing clear signs of a slowdown in 2025. According to a recent analysis by eXp Italy, house prices have declined in every region of the country between December 2024 and February 2025, confirming a widespread downward trend.
Where are prices falling the most?
Some regions have been hit harder than others. Veneto tops the list, with a sharp drop of 8.5%, followed by Valle d’Aosta (-7.9%) and Marche (-6.9%). Even traditionally stable markets like Trentino-Alto Adige (-6.6%) and Emilia-Romagna (-6.3%) haven’t escaped the downturn.
These figures paint a clear picture: the correction is not just a blip, but a nationwide trend affecting even historically solid areas.
Where are property values holding up?
Despite the overall decline, a few regions are faring better. Campania has seen only a slight dip of 1.1%, while Tuscany and Molise registered small drops of 1.3% and 1.7% respectively — all staying below the key 2% threshold.
These more modest corrections suggest pockets of resilience in an otherwise challenging market.
Molise bucks the trend
Looking at the market year-on-year (February 2025 vs. February 2024), nearly all regions have seen a drop in property values — except Molise.
This small central-southern region recorded an annual increase of 3.3%, making it the only area in Italy to show positive growth. With its relatively low prices and growing appeal as a more peaceful, less congested alternative, Molise is clearly attracting fresh interest from buyers and investors alike.
Who else is holding steady?
Elsewhere, some regions have managed to contain the damage. Calabria (-0.1%), Campania (-0.2%), and Abruzzo (-0.3%) experienced only marginal year-on-year declines, demonstrating a certain resilience amid broader market pressure.
On the other hand, Valle d’Aosta (-5.5%), Marche (-4.6%), and Basilicata (-3.2%) suffered more significant losses — underlining long-standing structural weaknesses that may take time to address.
What’s causing the slowdown?
Experts at eXp Italy point to a combination of factors:
- Rising mortgage interest rates
- Inflation, which is eating into household spending power
- A general climate of economic uncertainty, prompting buyers to delay major investments
In addition, a higher supply of homes in some areas — often due to speculative selling or declining demand for second homes — is pushing prices down even further.
At the same time, new lifestyle preferences are coming into play, with more people showing interest in smaller towns and rural areas, reshaping the Italian property landscape.
What lies ahead for 2025?
The outlook for the rest of the year remains cautious. Much depends on:
- The overall health of the economy
- How the European Central Bank handles interest rates
- Employment trends and consumer confidence
If interest rates stabilise or begin to drop, we could see a partial recovery in property values during the second half of 2025.
In the meantime, Molise stands out as a promising market for those looking to invest in emerging, less saturated areas. For regions experiencing sharper declines, all eyes will be on demand trends — to see whether the year ends in the red, or if a turnaround is on the horizon.