After a period of consistent growth, experts are now weighing in on the future of Italy’s real estate market. In recent years, Italy has experienced a steady increase in housing prices, and the latest data for 2022 supports this trend.
According to preliminary figures released by Italy’s National Statistics Office (ISTAT), the country’s Housing Price Index (HPI) recorded a 2.3 percent growth in the second quarter of this year compared to the previous quarter. Furthermore, it witnessed a significant 5.2 percent increase compared to the same period last year.
This growth was primarily fueled by the construction of new properties, as indicated by ISTAT’s data. While the value of existing homes rose by 3.8 percent from the previous year, new dwellings saw a remarkable surge of 12.1 percent in market value.
Italy’s real estate market experienced a period of stagnation leading up to the end of 2019, largely due to the abundance of older, neglected properties that were difficult to sell. However, the unexpected onset of the Covid-19 pandemic brought about a seismic shift in the market. The first quarter of 2020 witnessed a significant upturn in property values, driven by a combination of government stimulus initiatives and the desire among buyers to secure second homes and escape crowded lockdown conditions.
This renewed interest in Italy’s property market continued throughout 2021 and has carried over into 2022, with the market experiencing sustained growth.
As we look towards 2023, the question remains: will the upward trajectory of Italy’s property prices persist? Experts and industry analysts are closely monitoring the market to determine its future direction.
