The trend in the Italian property market continues to show caution regarding buyers’ spending power. The latest analysis on spending capacity, produced by the Tecnocasa Group’s Research Office, provides an updated overview as of June 2025, confirming a trend already observed in previous months: most potential buyers are operating within the lower budget ranges.
The up to €119,000 segment remains the most popular
Across Italy, 23.6% of buyers have a budget of €119,000 or less, the highest share among all price brackets. This mirrors January’s figures, highlighting stable demand for lower-cost homes.
The three lowest budget bands are closely aligned, indicating a fairly even distribution of buyers in the more affordable segments. This reflects a market where purchasing power remains constrained by interest rates that have yet to fully normalise and a general slowdown in property transactions.
Milan and Rome: focus shifts to €250,000–€349,000
In Italy’s more expensive and dynamic cities, such as Milan and Rome, the picture is different. The most common budget range is €250,000–€349,000, capturing the largest share of buyers: 25.5% in Milan and 25.0% in Rome.
Milan has even seen a slight increase of 0.6% compared with the previous survey, signalling that demand remains strong despite the city’s high average property prices. Interest in this range is driven by buyers with medium-to-high investment capacity, often professionals attracted by Milan’s economic opportunities.
Genoa leads in the lower-budget segment
In Genoa, one of Italy’s most affordable cities, 61.8% of buyers are looking at properties costing up to €119,000, the highest percentage among major cities.
This reflects a more economical market, with demand often coming from local families and investors seeking rental income opportunities, where entry with moderate capital is still feasible.
Other regional capitals
In smaller regional capitals outside the major cities, the lowest budget bracket accounts for 42.9% of buyers, unchanged from January 2025.
Notable examples include:
- Perugia, where 67.7% of buyers are in the lowest bracket;
- Campobasso, with a striking 77.3%.
Here, property values are significantly lower than in the major cities, and demand focuses on smaller, low-cost homes, often used as second homes or low-risk investments.
A market divided: major cities vs the rest of Italy
Overall, the Tecnocasa Research Office highlights a split market:
- In Milan and Rome, average budgets remain high, and the property market is active in higher-value segments;
- In most other regional capitals, lower-budget properties dominate, reflecting cautious demand shaped by lower incomes and limited purchasing power.
The coming months will largely depend on macroeconomic trends such as interest rates, inflation, and consumer confidence. For now, the June 2025 snapshot shows a market that, while showing signs of stability, remains anchored to restrained spending for most buyers.