The year 2024 marked the beginning of a recovery in the real estate market, a trend confirmed in early 2025 by a significant increase in property transactions. In the first quarter of 2025, sales rose by 11.5% year-on-year, driven in large part by mortgage-financed purchases, which surged by 32.7% thanks to a drop in interest rates.
House prices are showing modest but steady growth, with semi-annual increases ranging from 0.8% to 1.3%, and annual growth slightly higher, between 1.1% and 1.4%. Housing demand is now nearly evenly split between purchasing and renting, with a slight preference for buying (53%). In major cities such as Milan and Rome, there’s a noticeable return to homeownership, particularly for investment purposes. Buyers are increasingly focusing on peripheral and suburban areas, while rental demand is also on the rise, particularly among those seeking greater contractual flexibility.
The corporate real estate investment market has also shown encouraging signs of recovery. In Q1 2025, investments totaled €2.7 billion, with growing interest in alternative assets such as hotels, residential properties, and high-quality office buildings. Looking ahead, global uncertainty is likely to lead investors toward more selective, yield-oriented strategies, with a focus on stable-income sectors like Rent to Buy schemes, student housing, and digital infrastructure.
Going forward, the strong performance in transaction activity is expected to support further nominal growth in housing prices.
