ITALY - What’s the property market like in Italy?

Are you researching the Italy property market's readiness for a house purchase this year?

Good news is that Italy's market is comparatively buoyant. On a national level, signs point to a gradual levelling out, without the significant price drops predicted in other major economies. This is comforting news for future owners of property there.

Statistics from global analyst Fitch Ratings forecasts nominal house price growth of between 0.5 per cent and one per cent across 2023 and 2024. While this is down from the 3.5 per cent growth estimated for 2022, Italy's limited supply of homes should prevent nominal price falls, says Fitch, adding that the country's housing stock, most of which comprises older properties, is still struggling to catch up with demand from the past three to four years. This is particularly evident in large metropolitan areas, where the supply of new properties is scarce. Like in most European states, demand won't escape the negative effects of anticipated rises in interest rates and inflation.

Meanwhile, the latest House Price Index from Italy's Office for National Statistics (ISTAT) confirms a slowing down of growth too. During the third quarter of 2022, average prices increased by three per cent year-on-year but fell by one per cent compared to the previous quarter. Looking at the first three quarters as a whole, average prices rose by three per cent compared to 2021. Expectations are for this figure to be less in 2023.