Italy's housing market continues to show resilience in 2025, with property prices rising year-on-year despite a marginal quarterly decline. According to preliminary estimates from Istat (the Italian National Institute of Statistics), house prices increased by 4.4% in the first quarter of 2025 compared to the same period in 2024.
Existing homes drive annual price growth
The main driver behind this annual rise is the robust performance of existing homes, which saw a 4.9% year-on-year increase in prices. In contrast, newly built properties experienced a more modest annual rise of 1.5%, signalling a slight slowdown in new build price momentum.
Quarter-on-quarter dip linked to new builds
While the annual figures are positive, the data also reveals a 0.2% decrease in house prices compared to the previous quarter. This quarterly decline is largely attributed to the drop in new-build property prices, which fell by 8.7% after a sharp 9.2% increase in the final quarter of 2024. Meanwhile, prices for existing properties remained buoyant with a 1.7% quarter-on-quarter rise.
Property sales volumes on the rise
Alongside price movements, Italy's housing market is also seeing increased activity. Data from the Italian Revenue Agency’s Real Estate Market Observatory shows that residential property sales rose by 11.2% in Q1 2025, building on a 7.6% increase in Q4 2024. This surge in transactions suggests continued confidence in the Italian housing market, both from domestic buyers and international investors.
Outlook for 2025
With existing home prices driving annual growth and transaction volumes on the rise, Italy's property market remains an attractive prospect in 2025. However, the volatility in new build prices could signal challenges for developers and investors focused on new construction.
For those considering buying a property in Italy—whether as a second home, an investment, or a relocation opportunity—the current trends suggest that existing homes offer more stable value growth, while the new build sector may require closer market monitoring.
Looking to invest in Italian real estate in 2025? With property prices rising steadily and sales volumes increasing, it could be the right time to explore opportunities in regions like Tuscany, Puglia, and Lake Como. Stay informed with the latest updates on house prices, market trends, and property hotspots across Italy with idealista/news.
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