Main outcomes of the second quarter of 2026

The Italian market for residential real estate concluded the period from April to June with mixed results: the metrics remained stable compared to the previous year but experienced a significant surge from the beginning of the year.

• Total number of transactions: In Q2 2026, Italy saw 201,596 housing transactions taking place.
• Year-on-year (annual) trends: The figure closely mirrored the results of Q2 2025 (201,344 transactions), showing a marginal increase of +0.1%.
• Quarterly trends: The market picked up pace by +12.2% compared to Q1 2026 (179,655 transactions), indicating an addition of nearly 22,000 transactions in just three months.

The spring and summer months traditionally prove to be the busiest period for finalizing property deals, as Italian families tend to make home-buying decisions more frequently during this time.

Trends in Italy's major metropolitan areas

All 8 prominent metropolitan areas in Italy witnessed growth compared to Q1 2026, although the annual trends (against the same period in 2025) displayed a mixed picture.

• Bologna: Leading the quarterly recovery with a +15.0% increase from Q1. Annual growth stood at +1.1%. New constructions accounted for 8.3% of the market.
• Florence: Securing the second spot in quarterly growth (+12.9%); however, it depicted the poorest annual dynamics (-8.2%). New constructions represented 4.5% of the market.
• Turin: Witnessed a quarterly growth of +11.2% and an annual growth of +0.6%. New constructions constituted 4.2% of the market.
• Rome: Recorded a quarterly growth of +10.3% and an annual growth of +0.4%. New constructions comprised 7.8% of the market.
• Milan: Experienced a quarterly growth of +10.1%. It maintained absolute stability on an annual basis (6,492 transactions compared to 6,491 the previous year). Milan retained its top position in terms of new constructions, constituting 12.1% of the total transactions (786 properties).
• Genoa: Noted a quarterly growth of +8.3% and an annual growth of +2.9%. New constructions made up 2.3% of the market.
• Naples: Led in annual growth with +4.2% (2,236 transactions). Quarterly growth stood at +7.1%. New constructions had the smallest share among big cities at 1.6%.
• Palermo: Experienced a quarterly growth of +5.8% but an annual decline of -2.6%. New constructions accounted for 3.1% of the market.

Surge in new constructions segment (nuove costruzioni)

An important highlight from the report was the uptrend in new constructions - their sales were growing twice as fast as the market overall, with the share of new housing in total transactions steadily rising (5% in Q2 2025 $\rightarrow$ 6% in Q1 2026 $\rightarrow$ 6.4% in Q2 2026).

• Annual growth: Q2 2026 saw 12,902 new houses/apartments sold compared to 9,866 in the same period of 2025, marking a significant growth of +30.8%.
• Quarterly growth: New home sales surged by +19.1% compared to Q1 2026 (10,835 transactions).

Quarterly growth highlights in new constructions segment by city:

• Genoa: +95.0%
• Palermo: +72.6%
• Naples: +55.8%
• Turin: +50.7%
• Bologna: +36.2%
• Milan: +14.9%
• In the new constructions segment, Rome (-9.4%) and Florence (-18.6%) were the only cities that experienced a decline.

Challenges and factors restraining growth: rise in the base rate

Giuseppe Crupi, CEO of Abitare Co., highlighted that while the spring indicators reaffirmed positive forecasts, the market faced new geopolitical and economic challenges.

A fresh wave of inflation, stemming from disruptions in supply chains and escalating energy prices amid the US-Iran conflict, led to an increase in the base rate to 2.5%. The higher cost of borrowing and mortgages is curbing purchasing power, prompting analysts to adopt a cautious stance in their projections until the end of 2026.