It’s been a while since our last property market update and there’s been significant changes in the residential sector in Italy, especially regarding house prices in Italy.
According to the Italian Housing Market Survey, over 60% of 1,458 real estate agents surveyed reported stable house prices in the first quarter of 2023.
Today, the average house price in Italy is €380,000 for a 2,000 square-foot-home. This translates to just €190 per square foot and is more affordable than homes in Spain (€200) and Portugal (€256).
While there haven’t been any specific updates for the types of property sold or average asking price, we take a look at the most recent statistics that reflect the state of the Italian property market.
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Housing Price Index
Last update in December 2022, the Housing Index (which measures residential property market prices) remained unchanged at 106.90 points in the fourth quarter of last year. On a year-to-year comparison the index reading is higher than it has been in the last three years, due to high inflation and other influences, but remains lower than the July 2022 high of 108.1.
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Construction PMI & Output
Construction output figures measure the evolution of output within the construction industry, including residential construction and civil engineering. Last updated in March 2023, the Italian construction output figure fell to a two-year low of -3.4%. This is largely due to the country’s rising borrowing costs. However, in the first quarter of 2023, Italian construction activity posted a quarterly increase of 1.1%.
While these figures may not relate to your specific home-buyer situation, they will influence the market for anyone looking to buy an off-plan home in Italy.
If you are interested in buying an off-plan home in Italy, let us know at [email protected] and we’ll look into it for you.
Home ownership rate
The home ownership rate shows the ratio of owner-occupied units to total residential units. For Italy, the latest figures reflected a 73.7% ratio, meaning that the property market for rentals is much slimmer.
If you’re looking to buy a property in Italy, browse Your Overseas Home for available homes. We have a range of apartments, farmhouses, townhouses, villas and more across Italy, from Umbria to Sicily.
The latest figures from the Bank of Italy’s Italian Housing Market Survey showed that current and expected rents rose sharply in the first quarter of this year.
Sources used: My Dolce Casa, Bank of Italy Italian Housing Market Survey, Trading Economics
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