Italy's New Property Market: Prices Rose by 4.9% in the First Half of 2026

The sale of new residences displayed impressive growth in the initial quarter (+8.6% nationwide). Milan and Rome maintain their positions as the most costly cities, while Bologna exhibits remarkable increases in both prices (+8.4%) and transaction levels.

The first six months of 2026 witnessed a positive trend towards higher prices in new and under-construction housing. As per research by Abitare Co., a firm specializing in the primary property market, following a significant decline in 2025, sales of new constructions began to rebound (+8.6%). By the conclusion of the initial quarter, an uptick in transactions was observed in seven out of the eight largest metropolitan regions in the nation. Bologna emerged as the top performer with a remarkable surge in sales by +81.1%, while Naples was the sole city to experience a decline (-51.7%).

Overall Property Market Overview

On average, the cost per square meter in new constructions nationwide escalated by 4.9% compared to the same period in 2025. The volume of new home sales, based on the latest official data for the initial quarter, exhibited an 8.6% increase.

Preliminary assessments for the second quarter suggest a minor slowdown in both primary and secondary market activities. This can be attributed to general economic uncertainties, sluggish growth in the European economy, and heightened selectivity among buyers, despite more accessible mortgage options, in their home selections.

City-Specific Trends in Italy's Major Urban Centers

Leading the growth are Bologna, Palermo, and Florence

Bologna experienced the most substantial upsurge among the eight metropolitan areas: prices for new constructions surged by 8.4% in the first half of 2026, averaging €4,700/sq. m (peaking at €5,500/sq. m in the city center). This fervor is further evidenced by Tax Service (OMI) data: new construction sales spiked by 81.1% in the initial quarter (98 transactions compared to 54 the previous year).

Palermo secured second place in terms of price appreciation (+7.7%). Despite commencing at a lower price point (€3,200/sq. m on average), Sicily's capital demonstrated commendable growth in both price and sales (+19.1%).

Florence completed the top three positions: prices rose by 6.1% to an average of €5,800/sq. m, with luxury properties in the historic center fetching up to €8,000/sq. m.

Genoa, Naples, and Rome

Genoa observed a 5.2% price hike (average price - €4,800/sq. m) alongside a sales surge of +57.1% in the initial quarter (30 transactions).

Naples reported a 4.0% price increase (average of €4,300/sq. m), though the number of new construction sales plummeted by 52% (merely 23 transactions in the initial quarter).

Rome witnessed a 3.5% price upsurge, with an average price of €6,600/sq. m (reaching €10,800/sq. m in the city center). Rome's market remains vibrant, with new apartment sales escalating by 23.2% (851 transactions in the initial quarter).

Milan is witnessing a slowdown but retains its top spot.

Milan saw a more moderate price increase of around +1.8%. This indicates a phase of market stabilization, particularly in the suburbs where prices have reached a plateau.

In contrast, prestigious areas and the historic core of Milan continue to experience unhindered price growth due to supply shortages and heightened demand.

From April onwards, a slight decline in activity has been noticed in Milan (as well as nationwide): the average property selling duration has extended to approximately 150 days. Nonetheless, Milan remains Italy's priciest city, with new construction prices averaging €7,300/sq. m and exceeding €15,000/sq. m in the city center.

In Turin, prices saw marginal changes (+1.1%, averaging €4,780/sq. m, rising to €6,500/sq. m in the city center), yet the market remains highly active - first quarter transactions in 2026 surged by 35.4%.