Italy’s residential property market expanded in early 2026, although performance differed substantially from one city to another.
The country recorded 179,654 home sales in the first quarter, a 4.4% increase on the same period in 2025, according to an IPI report. Turin, Genoa and Bari were among the cities with the fastest rises in transactions, while Florence was the only market listed to record a fall.
- Turin leads growth among the largest cities
- Genoa and Bari record strong sales increases
- Padua outperforms the national market
- Milan continues to grow, while Florence declines
- Rome remains the largest market by transaction volume
- Mortgages gain ground as supply remains limited
- Outlook for Italy’s property market in 2026
Turin leads growth among the largest cities
Turin posted the strongest annual increase among the large cities covered, with 3,913 transactions in the first three months of 2026, up 9.2%.
The report describes the city’s prices as competitive compared with larger national property hubs. It also identifies broad and diversified demand, while noting that speculation risks remain contained.
According to idealista’s July 2026 price report, homes in Turin were advertised at an average of €2,209 per square metre. At that average, an 80m² flat would cost around €176,720, excluding any additional purchase costs.
In Centro, Turin’s most expensive area in the data provided, the average was €4,069 per square metre, equivalent to about €325,520 for 80m².
Genoa and Bari record strong sales increases
Genoa registered 2,344 transactions, a year-on-year increase of 8.7%. The report links its result to accessible values and an urban structure that concentrates liquidity in the provincial capital.
idealista’s July 2026 price report put Genoa’s average asking price at €1,791 per square metre, meaning an 80m² flat would cost around €143,280, excluding additional costs.
- In Levante, the city’s most expensive area in the figures provided, the average was €3,270 per square metre, or about €261,600 for 80m².
Bari recorded 1,088 sales, rising 8.4%. Its demand combines residential use, investment and growing urban appeal, according to the source.
Bari’s average asking price was €2,180 per square metre in July 2026. An 80m² home at that level would cost approximately €174,400, excluding purchase costs.
- In Madonnella–Umbertino, the most expensive area listed, prices averaged €2,610 per square metre, equivalent to around €208,800 for 80m².
The South as a whole saw sales increase by 5.1%, the same rate as the North West. The North East recorded more limited growth of 2.2%.
Padua outperforms the national market
Padua recorded 822 transactions, an annual increase of 7.0%. This exceeded both the national rate and that of the North East.
The city’s university, productive system, investment demand and selective new supply are among the features behind its market momentum.
The average asking price in Padua is around €2,568 per square metre. This would put the price of an 80m² flat at about €205,440, excluding additional costs.
Milan continues to grow, while Florence declines
Milan, the most expensive market among the provincial capitals analysed, recorded 5,896 transactions, up 7.1% year-on-year.
The city’s average asking price stood at €5,681 per square metre. An 80m² flat at the citywide average would therefore cost around €454,480, excluding additional purchase costs.
- In Centro Storico, the highest-priced area listed in Milan, homes averaged €12,334 per square metre, or about €986,720 for 80m².
Milan also had the highest proportion of new-build sales among the large provincial capitals in the report: 11.6% of Milan’s transactions involved newly built homes.
Florence, also among Italy’s highest-priced markets, recorded 1,035 transactions, a 2.9% decline. The average asking price in Florence is €4,786 per square metre, equivalent to approximately €382,880 for an 80m² flat.
Bologna’s 1,403 sales represented growth of 3.4%, below the national average; the report links its slower pace to high prices and limited supply.
Rome remains the largest market by transaction volume
Rome recorded 8,961 sales, up 5.1% year-on-year, making it the largest urban market in the report.
Rome’s average asking price is €3,767 per square metre. An 80m² flat at the citywide average would cost about €301,360, excluding additional purchase costs.
In Centro, the most expensive area included in the data, asking prices averaged €7,817 per square metre, equivalent to roughly €625,360 for an 80m² flat.
Mortgages gain ground as supply remains limited
Mortgage-backed purchases accounted for 47.8% of property transactions by private individuals. Both the number of mortgage-supported sales and their share of transactions increased.
New-build sales rose by 14.6% year-on-year, although new homes made up only 6% of all transactions. However, the market remains heavily dependent on existing housing stock.
Outlook for Italy’s property market in 2026
Italy is expected to record between 780,000 and 800,000 residential property transactions during 2026. The outlook will depend on affordability, interest rates, household incomes and the supply of homes that meet buyers’ needs.
Without a significant rise in supply, particularly of new-build properties, the continued gap between demand and available housing is expected to support prices in the country’s most active markets.
Figures and outlook from the original idealista.it/news/ article.
