The new-build residential market rebounds: transactions rise in Q1 2026

New-build residential: signs of recovery are emerging

The new-build segment is returning to growth, with the recovery extending across nearly all major urban markets. The increase in transactions reflects renewed confidence and a more consistent level of demand.

The start of 2026 therefore marks a shift in momentum after months of wait-and-see sentiment.

Transactions: recovery in major cities drives the market

The new-build segment is recording growth above the national average in Italy’s major cities. The increase in transactions reflects more responsive demand and a greater capacity among mature markets to absorb new supply. This trend is particularly evident in the most established urban markets.

Data:

• New-build residential transactions in Italy: +15%
• Major Italian cities: +28%
• Bologna: +146%
• Genoa: +57%
• Turin: +35%
• Milan: +31%
• Rome: +22%

The price premium of new-build over existing homes

The analysis of supply and demand for new-build properties confirms the strength of the segment nationwide. Energy efficiency, higher safety standards and greater living comfort remain the key drivers supporting the value of new homes compared with existing housing stock.

The study highlights significant variation in the price premium across different local markets. On the one hand, the differential reflects the added value buyers place on new-build properties; on the other, it highlights affordability challenges in higher-value markets, where existing home prices are already elevated and the gap with new-build properties is more pronounced.

Data:

• Italy average: new-build €3,100/sqm, existing €2,100/sqm → +47%
• Rome and Milan: new-build €5,120/sqm, existing €4,370/sqm → +18%
• Top 8 cities: new-build €3,600/sqm, existing €2,580/sqm → +39%
• Provincial capitals: new-build €3,100/sqm, existing €1,900/sqm → +63%
• Smaller municipalities: new-build €2,900/sqm, existing €1,880/sqm → +55%

In Rome and Milan, the percentage gap is narrower (+18%), as average existing home prices are structurally higher than in other cities.

Supply distribution and demand preferences

The distribution of new-build properties over the past twelve months confirms significant regional variation: supply is concentrated primarily in the major Northern markets, with a significant presence also in Rome and Tuscany, while in Southern Italy it remains more fragmented and limited.

Data:

New-build share of total residential supply

• Rome and Milan: 7.3%
• Other major cities: 5.9%
• Smaller municipalities: 6.8%

Housing configurations and key demand drivers

Demand is increasingly focused on functional, high-performing housing types, with two-bedroom apartments remaining the most sought-after configuration. Energy efficiency, outdoor spaces and well-balanced floor areas are the main purchasing criteria, while shared amenities and technological features continue to play a marginal role.

Data:

• Two-bedroom apartments: demand 43%, supply 44%
• Three-bedroom apartments: supply exceeds demand
• One-bedroom apartments: demand exceeds supply
• Key drivers: energy efficiency, outdoor spaces, floor area

What Italian buyers look for in new-build homes

According to Patrigest’s Gli Italiani e la casa Observatory, one in two Italians considers it a priority or very important for their future home to be newly built or recently constructed.

Perceived value and affordability gap

The perceived value of new-build homes remains high, but a gap persists between the quality offered and the price many households consider affordable. The challenge lies in communicating the tangible benefits of new-build properties more effectively, from energy efficiency to lower running costs.

In summary

The new-build residential market is returning to growth, supported by informed demand and market values that confirm the segment’s ability to deliver quality and long-term performance. The price premium remains significant and consistent with the higher performance standards of new-build homes.

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