As diverse as Italy itself, house prices across the country vary widely. Numerous factors influence these prices, including demand, location (both micro and macro), year of construction, quality, size, and more.

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Italian Housing Market 

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Nationwide, the average price for all housing types, including apartments, farmhouses, villas, and others, increased by 2.2% in Q4 2024, reaching €1,851 (US$2,033) per square meter (sq. m), as reported by real estate portal Idealista. When adjusted for inflation, prices rose by 1.5% during the same period.

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Demand for housing is significantly higher in major cities and metropolitan areas than in rural areas, driven by jobseekers, remote workers, and young Italian professionals.

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Rome, Italy's capital and largest city, saw average home prices rise slightly by 0.9% year-over-year to €3,036 (US$3,334) per sq. m. in Q3 2024 (0.2% after adjusting for inflation).

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Milan, Bolzano, and Venice boast the highest housing costs in the country, with current average prices of €4,988 (US$5,478), €4,610 (US$5,063), and €4,529 (US$4,974) per sq. m., respectively.

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Nationwide, the National Institute of Statistics (ISTAT) reported that the overall house price index increased by 2.94% year-over-year (2.17% inflation-adjusted) in Q2 2024. On a quarterly basis, prices rose 3.23% (2.97% inflation-adjusted) in the same period.

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The real estate market - signs of increasing demand

 

In Q4 2023, the number of property transactions, including real estate units and other property types, reached 277,415, a 3.4% increase from the previous quarter and a 0.5% increase year-over-year, according to the latest data from ISTAT. Residential property transfers accounted for approximately 93.3% of these transactions.

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Both the number of house sales and average discounts on asking prices have seen positive trends. According to the Banca D'Italia's Q2 2024 Italian Housing Market Survey of 1,564 real estate agents, house sales increased both quarter-over-quarter and year-over-year. Additionally, average discounts on asking prices and time on the market have remained near their lowest levels since the survey's inception.

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All regions experienced growth 

 

Centre (+5.9%), Islands (+4.7%), South (+4%), Northwest (+2.9%), and Northeast (+2.6%).

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Following a slowdown in demand during the second half of 2022 due to rising inflation and a global economic downturn, the market began to recover in the second half of 2023.

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Southern Italy continues to witness strong demand, primarily driven by the increase in remote work and work-from-home arrangements.

 

Furthermore, various broker reports highlight growing demand for the following property types:

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• Multifunctional homes with larger dimensions and modular spaces suitable for remote work

• Properties with outdoor spaces, such as gardens or terraces

• Condo units with amenities like gyms, garages, and multifunctional rooms

• Larger second homes

A City-by-City Breakdown

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Bolzano

As a gateway to the stunning Dolomites, Bolzano boasts one of the highest average home prices in Italy. In Q3 2024, prices increased by 2.5% year-over-year to €4,610 per square meter.

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Turin

Italy's industrial hub, Turin, saw a 2.1% year-over-year increase in average home prices, reaching €1,885 per square meter in Q3 2024.

 

Bologna

The university city of Bologna experienced a 2.3% year-over-year rise in home prices, bringing the average to €3,526 per square meter in Q3 2024.

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Florence

The Renaissance city of Florence saw a more modest 1.9% year-over-year increase in home prices, reaching an average of €4,157 per square meter.

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Naples

Italy's third-largest city, Naples, experienced significant growth in home prices, with an 8.6% year-over-year increase to an average of €2,830 per square meter.

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Palermo

In Palermo, home prices increased by a more modest 2.8% year-over-year to €1,372 per square meter.

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Genoa

Genoa saw a slight 1.3% year-over-year increase in average home prices, reaching €1,411 per square meter.

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Catania

Catania was the only major city to experience a decline in home prices, with a 0.1% year-over-year decrease to €1,203 per square meter in Q3 2024.

 

Major cities significantly impact their surrounding regions

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The major cities undoubtedly influence their surrounding metropolitan areas. However, due to the ongoing rural exodus, particularly among young people, many regional governments are implementing incentives to attract homebuyers. These incentives include tax breaks, pension programs, and initiatives like the well-known €1 House Sale.

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For detailed pricing information, in-depth overviews, and the latest price trends, please refer to our specific regional overviews.​​​​

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