10/06/2025 – The residential real estate market: the first quarter of 2025 closes on a positive note (+11.2%). Among the metropolitan cities, the number of sales increased everywhere except in Florence (–6.2%). The largest increase compared to the first quarter of 2024 was recorded in Genoa (+13.5%), followed by Turin (+12.2%) and Rome (+10.7%). Milan confirms its positive trend with +7.1%. Naples (+6.1%) is the least performing, excluding Florence.
New home sales remain substantially stable compared to the first quarter of 2024 (–0.4%) after the strong recovery in the last quarter of 2024 (+45.8% compared to Q4 2023).
After closing the fourth quarter of 2024 with an increase of +7.6% in home sales, the first three months of 2025 continue to show growth. According to the analysis conducted by Abitare Co. – a real estate brokerage and services company specializing in new constructions – based on the data from the Real Estate Market Observatory (OMI) of the Revenue Agency, from January to March 2025 the national residential real estate market accelerated, growing by +11.2% compared to the same period of the previous year, with 172,048 transactions.
Sales increased in almost all major metropolitan cities, except for Florence, which recorded –6.2% and 1,067 transactions. Among the other cities, increases were recorded in Rome (+10.7% and 8,528 transactions), Milan (+7.1% and 5,505 transactions), Turin (+12.2% and 3,583 transactions), Genoa (+13.5% and 2,155 transactions), Bologna (+9.3% and 1,357 transactions), Naples (+6.1% and 1,982 transactions) and Palermo (+8.98% and 1,640 transactions).
At the national level, the areas growing the most are the Central regions (+12.7%) and North-East (+14.7%). Southern Italy shows growth of 6.3%; the North-West +12.3%, and the Islands +6.8%. Provincial capitals slightly outperform non-capitals (+11.6% vs +11.0%).
“The first three months of the new year confirm the positive trend already observed in the last quarter of 2024, when the year closed with over 700,000 home sales (+1.4% compared to 2023). The interest rate cuts by the ECB had a positive effect on mortgage demand, reducing monthly payments and making long-term financing more convenient. The share of purchases made with a mortgage is approaching fifty percent of all transactions (45.8%). At the end of the first quarter of this year, demand for financing from households grew by more than twenty percent compared to the first quarter of 2024,” said Giuseppe Crupi, CEO of Abitare Co.
“Consumer confidence among Italian families is improving, especially regarding their judgments and expectations about the country’s economic situation. Prospects of contained inflation are positively influencing confidence and boosting demand from property investors. However, it is impossible to overlook the well-known difficulties related to the quality of existing housing stock—still very low—and the structural shortage of new housing supply, particularly in major cities.”
For more information:
Abitare Co | Tel. +39-02 48.95.84.16
Via Savona, 52 20144 Milano (MI)
info@abitareco.it | www.abitareco.it
