The average price per housing unit in Italy increased by 2.7% in 2025, reaching €2104 per square meter
The Italian real estate market in 2025 showed signs of steady recovery after several years of low activity and instability, reports Mondaq. The main trends of the year were moderate growth in housing prices, a noticeable increase in rental rates, transaction revival, and rising interest in investment properties.
Housing prices
The average asking price for housing in Italy in 2025 was €2104/m², 2.7% higher than in 2024. These prices reflect a recovery trend after a period of stagnation, driven by relatively improved mortgage conditions and economic stabilization.
However, price dynamics varied significantly by region and city. In Milan, one of the country’s key markets, average actual prices of sold properties approached €5000/m², while in Rome they were €3200/m². Meanwhile, in tourist and Alpine areas such as Cortina d’Ampezzo and Madonna di Campiglio, prices, according to Eraeurope, range between €10000-15000/m².
At the same time, several less expensive regions, including Calabria and Molise, showed lower averages around €950-1000/m², highlighting significant territorial disparities in the market.
Rental costs: growth and demand pressure
The rental market also developed dynamically: the average rent in Italy increased by 7.7% compared to last year, reaching an average of €14.22/m² per month.
This increase is more noticeable than the rise in purchase prices and reflects growing demand for rentals, especially in large cities with high population mobility and foreign tenants.
Rental rates in cities such as Milan and Rome significantly exceeded the national average, indicating demand pressure on the limited supply of rental housing in central and economically active areas.
Transactions and annual dynamics
Transaction data also confirm market activation. In 2025, the number of sold properties in key cities increased, with Milan registering a 6.1% rise in transactions, Turin 5.9%, and Palermo 11.3%. This points to a revival of buyer demand, particularly in central and southern regions, notes Edilfin Srl.
Central and southern Italy also showed strong growth in activity: in Umbria, the number of transactions increased by approximately 14.2%, in Basilicata by 12.6%, and in Molise by 10.7%.
Regional features and key locations
Milan and Rome remain the main market drivers. Milan, as an economic and financial center, continues to hold the highest prices for urban housing and strong investment interest. Rome, with its rich history and high tourist inflow, also consistently shows high rental rates and transaction acceleration.
Regional markets display more complex patterns: prestigious areas of Trentino-Alto Adige remain the most expensive in terms of average housing prices, while southern regions are more affordable. This creates diverse investment opportunities and makes southern regions attractive to buyers with limited budgets.
Impact of economic and institutional factors
Understanding the real estate market in 2025 requires consideration of overall macroeconomic trends. The European Central Bank’s interest rate cuts and moderate economic stability contributed to improved mortgage accessibility, which in turn strengthened demand, writes FM Consulting.
In addition, interest in energy-efficient (“green”) homes is growing: properties with high energy efficiency ratings (A and B) already command higher prices compared to less efficient buildings, reflecting a sustainable trend toward eco-friendliness and comfort.
Experts International Investment believe that 2025 was a year of renewed activity for Italy’s real estate market. Rising housing prices, increased rental rates, and transaction revival create a positive picture with stable demand, especially in key cities. At the same time, regional differences and structural challenges (such as limited rental supply) remain important factors influencing market dynamics.