As the year draws to a close, the outlook for the Italian residential property market remains decidedly positive. The first half of 2025 laid solid foundations, confirming the recovery already seen in recent years. According to figures processed by the Tecnocasa Group’s Research Office using data from the Italian Revenue Agency, 373,395 transactions were recorded between January and June. This represents a 9.5% increase compared with the same period in 2024, when transactions stood at 341,096.
Lower interest rates and rising rental prices have continued to support demand throughout the year, encouraging more families to move towards home ownership.
Provincial capitals and other municipalities: growth across the country
The recovery has been broad-based, extending well beyond the major cities. Provincial capitals posted a 9.2% rise in transactions, while non-capital municipalities recorded a slightly higher increase of 9.6%. This consistency indicates that the market’s momentum has been shared across the country rather than concentrated in a handful of key locations.
Major cities: Verona leads the way, Florence bucks the trend
Looking at the largest cities, Verona stands out with the strongest growth, up 13.8% in the first half of the year. Turin follows with +11.7%, while Genoa and Palermo also posted robust increases of 9.2% and 9.4%. Milan grew by 6.8%, and Rome strengthened its positive trajectory with +7.0%. Naples, meanwhile, recorded a more modest rise of 2.7%.
Florence was the only major city to register a slight decline, slipping by 0.9% from 2,362 transactions to 2,340.
City-by-city performance
A closer look at the data shows Bari up 6.9%, with 2,135 transactions compared with 1,997 in the previous year. Bologna rose by 7.5%, moving from 2,745 to 2,952 sales. Palermo increased from 3,234 to 3,539 transactions, while Turin climbed to 7,909 from 7,079 in 2024.
Verona led percentage growth with 1,791 transactions compared with 1,574, while Milan reached 11,996 sales, up from 11,229. Rome remained Italy’s largest market with 18,368 transactions, exceeding 18,000 and rising from 17,158 the year before.
An encouraging trajectory for the year ahead
With the second half of 2025 continuing along the same broadly positive path, the market closes the year with confidence. The combination of relatively lower borrowing costs, improved consumer sentiment and ongoing pressure in the rental sector has maintained strong demand for home purchases throughout 2025.
If current trends hold, 2025 is set to be remembered as one of the most dynamic and high-performing years for Italy’s residential property market in recent times.
