Italy’s housing market showed steady growth in 2025, although the pace of price increases remained moderate compared with previous years. According to a detailed annual analysis of the residential sector, demand for homes continued to rise across much of the country, while prices generally followed a gradual upward trend driven by limited supply and ongoing interest from buyers.
Average prices for residential properties moved upward during the year, reflecting a market that remained resilient despite economic uncertainty and higher borrowing costs. In early 2026 the average asking price for a home in Italy reached about €1,866 per square meter, representing a 4.3% increase compared with the previous year and a 0.5% monthly rise.
