Italy's residential property market returns to growth in 2025

Italy's residential property market returns to growth in 2025

According to an analysis by the IPI research center, the Italian residential real estate market will once again show growth in 2025. During the year , 766,756 residential purchase and sale transactions were registered, up from 720,521 transactions in 2024. Overall growth was 6.4% .

This dynamic confirms the resilience of the sector, which is largely supported by the country's largest urban agglomerations.

Large cities remain the market's driving force

Major cities continue to play a key role in the national real estate market. Milan and Rome confirm their status as the largest metropolitan areas in terms of transaction size and volume.

At the same time , Turin and Naples are strengthening their positions as important second-tier urban centres.

Along with these , Bologna, Florence and Genoa represent medium-sized markets, where there is a marked concentration of transactions in the provincial capitals.

In Padua and Bari the situation is somewhat different: here transactions are more evenly distributed between the city and the province.

Hierarchical structure of urban markets

An analysis of residential real estate transactions in the main Italian cities where IPI Agency operates—Milan, Rome, Turin, Naples, Bologna, Florence, Genoa, Padua, and Bari—reveals a fairly clear hierarchy of urban markets.

At the same time, different patterns of distribution of demand for housing are observed in different territories.

Between growth and stabilization

A comparison of 2025 and 2024 figures shows different dynamics in different cities.

Some cities are seeing a significant increase in transaction volume, indicating continued strong demand. In others, markets are gradually entering a stabilization phase.

Overall, the real estate sector is gradually returning to a more normal level of activity after the particularly high levels recorded in the first two years after the pandemic.

Milan and Rome remain the dominant markets

Milan and Rome remain among the most dynamic markets, accounting for the largest volume of transactions.

In 2024, about 82 thousand transactions were registered in the province of Milan, slightly more than in the province of Rome - about 79 thousand .

However, the market structure of these two cities differs:

• in Rome, about 75% of the province's transactions are in the city itself;

• In Milan, the city accounts for approximately 49% of the province's transactions .

This indicates a high concentration of the market within the city of Rome , while the Milan agglomeration has a more polycentric structure , with a significant proportion of transactions taking place in the suburban area.

Turin is the country's third largest market

The province of Turin remains Italy's third largest residential property market .

In 2024, around 45,000 transactions were registered here, of which approximately 57% were in the city of Turin itself , confirming the central role of the regional capital in relation to its surrounding suburbs.

Naples is a key market in southern Italy

In the south of the country, Naples stands out, where more than 21 thousand housing transactions are carried out annually.

Unlike a number of other cities, the market here is distinguished by a more even distribution of transactions between the city and the municipalities of the metropolitan area .

Bologna and Florence: small but dynamic markets

Somewhat smaller, but quite active markets are found in Bologna and Florence .

In 2024:

• In the province of Bologna , about 18,900 transactions were registered;

• In the province of Florence , there are approximately 15,500 transactions .

In both cases , 50–55% of transactions take place in the provincial capital , confirming its dominant role in the market.

Genoa: a highly concentrated market

A more pronounced concentration is observed in Genoa .

Around 19,000 transactions are completed here annually, with over 75% occurring within the city itself . This structure is largely explained by the geographical features of the area , which limit the development of suburban areas.

Padua and Bari: stable markets with a balanced structure

Padua and Bari are medium-sized markets with an annual volume of between 14,000 and more than 20,000 transactions .

• In Padua, transactions are distributed relatively evenly throughout the province.

• In Bari , the role of the provincial capital is more pronounced, but the provincial market remains quite active.

In both cases, the market is characterized by good liquidity and relatively stable dynamics .