The Italian property market is thriving, closing the second quarter of 2025 with strong growth. According to analysis by Abitare Co., based on data from the Real Estate Market Observatory (OMI) of the Italian Revenue Agency, between April and June there were 201,344 residential sales, marking an increase of 8.1% compared with the same period in 2024.
This result consolidates the recovery that began at the end of 2024 and comes against a still uncertain macroeconomic backdrop, supported by falling interest rates and renewed confidence among households and investors.
Where buyers are heading: Turin and Palermo lead the way
The regional breakdown reveals a broadly positive picture, with nearly all major metropolitan areas showing growth:
- Rome: 9,839 sales, +4.1%
- Milan: 6,491 sales, +6.6%
- Turin: 4,325 sales, +11.3% (the best performance among the major cities)
- Genoa: 2,466 sales, +5.6%
- Bologna: 1,596 sales, +6.1%
- Florence: 1,273 sales, +3.9%
- Palermo: 1,899 sales, +10%
- Naples: 2,146 sales, -0.3% (the only city in decline)
The national figure of 201,344 transactions reflects a broadly expanding market, with particularly strong performances in the North (Milan, Turin, Bologna) and promising signs of dynamism in parts of the South, especially Palermo.
The cost of Italian living: Milan surpasses €5,000 per square metre
Alongside transaction volumes, property values are also increasing. According to Abitare Co., by June 2025 prices had risen by 2.2% compared with June 2024.
Milan remains the most expensive city, with average prices exceeding €5,000 per square metre. The Lombard capital stands out not only for its high unit values but also for growing demand for new-build properties, where supply remains limited compared with demand. Rome and Florence follow, with more moderate values but supported by stable demand, particularly for properties in central and semi-central locations.
What’s driving the market: growth factors and 2025 outlook
As highlighted by Giuseppe Crupi, CEO of Abitare Co., the market is benefiting from stronger demand, driven by more accessible mortgages and improving confidence:
“The Italian property market, despite the uncertain macroeconomic climate, is confirming the positive trend that began at the end of 2024. The share of sales with mortgages is rising thanks to lower rates, and forecasts suggest that we will close the year with more than 720,000 transactions,” said Crupi.
Achieving this milestone would bring the residential market back to pre-crisis levels, reaffirming Italy as an attractive market for buyers and investors alike, particularly in the segments of new-builds and high-quality residential properties.