This article is the result of an analysis of year-over-year data provided by Immobiliare.it as of Q3 2025.

Steady demand, softening supply

Data for 2025 shows this year as characterized by sustained demand in the Italian property market, and by gradually softening supply.

At the national level, average asking prices of approximately €2,100 ($2,450) per square meter correspond to annual price growth of about +2.6%. This confirms that 2025 was a positive year for Italian residential prices, but without signs of speculative acceleration.

The number of residential listings declined by about 1.3% year-over-year, while demand pressure rose sharply (+12.4%). This imbalance helps explain why prices remained supported despite weaker transactional dynamics.

The past year was in fact characterized by longer average selling times and a higher share of discounted listings. Together, these indicators describe a market where properties still sell, but more slowly and with greater negotiation, particularly outside of the strongest markets.

While not exuberant, the Italian property market appears on a better course than its US counterpart. Zillow’s national U.S. data shows home values up only about 0.1% year-over-year through November 2025. A worrying signal within the U.S. market is an increasing share of US homes (as much as 53%) now showing a decrease in value over the past 12 months.

Territorial divergence: Italy remains a multi-speed market

National averages conceal strong territorial differences. In Q3 2025, the North-East recorded year-over-year growth of about +4.6%, followed by the North-West (+3.2%) and the Centre (+2.6%). The South (+0.7%) and the Islands (+0.9%) remained close to flat.

Data also highlights a persistent gap versus pre-pandemic levels: northern regions remain well above 2019 benchmarks, while the South is broadly flat and the Islands slightly below. Location selection therefore continues to dominate investment outcomes.

Focus on major Italian cities

The past year saw positive price growth across most major Italian cities monitored, but with clear differences in both pace and market dynamics.

• Florence stood out as the fastest-growing urban market, with prices up about +9.0% year-on-year, reflecting particularly strong demand relative to available stock.
• Rome followed with approximately +7.3% annual growth in asking prices, underscoring the city’s enduring appeal even as broader market momentum has softened.
• Verona also registered robust growth (+6.8%), signaling that smaller yet dynamic urban economies can outperform larger peers in certain cycles.

At the other end of the spectrum, the pace of increase was more moderate in cities like:

• Milan, which still remained Italy’s most expensive market with a unit value around €5,560/m², but posted a more modest year-on-year rise (+2.3%).
• Venice and Turin, both recording increases of about +2.4%, consistent with national trends but below the top-performing cluster.

These patterns reflect a mix of market maturity and local supply–demand dynamics:

• Milan’s market appears more consolidated and balanced, with high price levels and relatively stable demand, suggesting that further upside may be restrained compared with recent peaks.
• In contrast, Florence’s sharper increase implies ongoing momentum and stronger upward pressure on prices, at least in the short term.

Source: Immobiliare.it

Energy efficiency and pricing

One of the clearest structural trends in 2025 is the widening price gap by energy class. Higher energy-rated homes (generally newly built or newly renovated) recorded stronger year-over-year price growth than lower-rated properties, and the premium for energy-efficient homes widened further, reaching roughly 53.9% between high and low classes.

This gap increasingly affects not only valuation but also liquidity, particularly in large cities where energy-efficient stock attracts deeper buyer pools.

Source: Immobiliare.it

Practical implications for investors and buyers

The Italian residential market in 2025 is generally healthy but fragmented. Price growth exists, but it is geographically concentrated and increasingly dependent on asset quality, including location and energy performance.

Liquidity conditions deserve close attention. Longer selling times and wider discounting mean that execution has become more important than headline pricing. In this context, cash buyers enjoy a growing competitive advantage. Where transactions already take longer to close, mortgage-backed purchases can extend the process by several weeks or months, weakening negotiating leverage. For investors, this shifts the focus toward disciplined entry pricing, certainty of execution, and careful deal structuring.