The new build property market in Italy is going through one of its most complex phases in the past twenty years. Sales have slowed sharply, construction output is down, and the pipeline of future developments looks thinner than it once did.
At the same time, supply is tight in many cities and housing pressure continues to grow. So if you’re looking at buying a new build in Italy in 2026, the question isn’t straightforward. It depends on how you weigh scarcity, risk and long-term positioning.
New-build property in Italy: what happened in 2025?
In the fourth quarter of 2025, new-build property transactions fell by 39.1% nationwide. Across the whole of 2025, around 49,000 newly built homes were sold in Italy. That represented just 6.4% of total residential transactions.
For comparison, in 2024, there were roughly 62,000 new-build sales, accounting for about 8.6% of the total market.
Italy is building far fewer homes than in the past
One of the most telling indicators is the long-term drop in housing production. In 2025, Italy built only about one-third of the number of homes constructed in 2007, which was the peak year before the global financial crisis.
Forecasts suggest that by 2028, annual new housing output could fall to around 115,000 units. The decline is particularly pronounced in multi-family apartment buildings, traditionally central in dense urban areas.
Why is the new-build market struggling?
The challenges facing the new build property market in Italy are structural rather than short-term.
Rising construction costs
After the pandemic, material costs increased significantly. In many building categories, prices rose by 25% to 40%.
This has squeezed developer margins and pushed up the cost of delivering new residential projects.
Stagnant household incomes
Italian household incomes have remained relatively stagnant. At the same time, access to credit has become more constrained.
Bureaucratic delays
Urban planning approvals and administrative procedures are often slow, especially in major cities.
The impact of the Superbonus
The Superbonus renovation incentive redirected a significant portion of construction capacity towards refurbishment projects. Many firms prioritised renovation work over new residential developments, further limiting the supply of newly built homes.
Growing housing pressure in major cities
While supply slows, housing pressure continues to build.
Social housing projects face delivery challenges, and rental affordability has become more strained in large urban centres. Around 250,000 families are currently on waiting lists for public housing in Italy.
The reduction in new housing supply risks deepening the imbalance between demand and availability. In cities where population and economic activity remain strong, this structural tension is unlikely to disappear quickly.
Where can you still find new builds in Italy?
The slowdown affects most major cities, but trends vary locally.
Milan
New-build transactions fell by 23%. Supply shortages have been compounded by legal investigations into alleged building irregularities, which have slowed several urban development projects.
Despite this, Milan remains Italy’s main economic engine and continues to attract both domestic and international demand.
Bologna
Bologna stands out with a 26% increase in new-build transactions. It is one of the few large cities recording growth in this segment.
Palermo
Palermo also recorded an increase, with new-build transactions up 20%. This makes it one of the rare markets moving against the national trend.
Other cities with new-build activity
The following cities are also highlighted as locations where new construction can still be found: Turin, Verona, Florence, Rome, Naples and Bari.
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