House prices are on the rise in Rome following the summer months, with an increase of 0.8%, bringing the average value of homes to €3,036 per square metre. This is reported in the latest report on property values in the Italian capital, which also highlights an annual price increase of 0.9%.
In the third quarter of 2024, 22 of the 27 districts in Rome monitored by idealista recorded price increases. The most significant rise was observed in Prati (6.4%). This was followed by Giustiniana-La Storta-Olgiata and Ardeatino-Appio Pignatelli-Cecchignola (both at 3.7%), and then Garbatella-Ostiense, which saw an increase of 3%.
The asking prices from property owners have grown by over 2% in Rome Est-Autostrade (2.9%), Centro Storico (2.7%), Casalotti-Selva Nera-Valle Santa (2.5%), Aurelio (2.4%), and Portuense-Magliana and Ottavia-Primavalle (both at 2.3%). Conversely, only five districts saw a slowdown in the last quarter, with the most marked declines in Nomentano-Tiburtino (-1.9%) and Labaro-Prima Porta (1%), followed by more marginal decreases in Eur-Torrino-Giuliano Dalmata (-0.8%), Gianicolense-La Pisana (-0.3%), and Casal Palocco-Infernetto (-0.2%).
Regarding prices, central Rome, with €7,099 per square metre, is the district with the highest house prices, followed by Prati (€5,802/m²) and Parioli (€5,452/m²). Twelve other districts, with property values above the city average of €2,998, fall within a range of €4,741 in Nomentano-Tiburtino to €3,060 in Portuense-Magliana. In contrast, the most affordable districts for purchasing a home in the capital are Rome Est Autostrade (€1,965/m²), the only district below €2,000 per square metre, Labaro-Prima Porta (€2,051/m²), and Giustiniana-La Storta (€2,203/m²).
Property prices in the province of Rome also increased in the past quarter at a rate of 1.1%, averaging €2,431 per square metre. Of the 65 municipalities monitored by Idealista, 51 showed increasing values compared to last June. The most significant price increases this quarter were recorded in Monte Compatri (11.3%), Zagarolo (11%), and Olevano Romano (10.5%), all showing double-digit rebounds. Meanwhile, the most substantial declines this quarter were observed in the municipalities of Marcellina (-8.4%), Sant’Oreste (-5.1%), and Poli (-4.9%).
Frascati (€2,771/m²) is the most expensive municipality in the province of Rome, ahead of Grottaferrata (€2,654/m²), Fiumicino (€2,654/m²), and Ciampino (€2,513/m²). Conversely, San Polo dei Cavalieri (€795/m²) is followed by Sant’Oreste (€804/m²), Poli (€854/m²), and Arcinazzo Romano (€877/m²) as some of the most affordable municipalities.
According to Vincenzo De Tommaso, Head of the Research Office at idealista, “The Italian real estate market has entered a phase of transition in 2024, after two years of steady growth. The stock of houses for sale is slowly increasing, partly due to the market slowdown caused by rising interest rates. These have dampened demand, leading to an increase in unsold properties and lengthening the time to sell. Despite this, the cost of owning a home remains high for a large part of the population, particularly for workers with average incomes, who often struggle to meet the minimum requirements set by banks for obtaining a mortgage. However, there are signs of improvement, especially due to the recent drop in interest rates.”
De Tommaso also noted that the recent half-percentage-point cut in the reference rate by the ECB could improve prospects for buyers, as long as demand does not increase too rapidly, thus avoiding further price hikes, given the persistent scarcity of homes for sale in Italy.