Advisory · Research · Valuation — Gabetti Group

26 January 2026

Residential market 2025: sales grow and prices move towards stabilisation

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Real Estate Operators & Developers

The Italian residential market consolidates its recovery in 2025

The Italian residential market confirms the growth path started after the slowdown linked to rising interest rates. Sales are increasing, credit is once again supporting demand, and purchase intentions are recovering. 

At the same time, new dynamics are emerging around affordability, new-build supply, rentals and value sustainability in major urban markets.

Residential sales, housing demand and credit

In 2025, the Italian residential market strengthens the recovery that began in 2024, supported by renewed demand and greater credit stability. Sales, purchase intentions and mortgage activity are all growing, while prices show signs of gradual adjustment. 

Affordability, supply-demand mismatch and value sustainability remain central issues in Italy’s main cities.

Italian residential market trends between demand, credit and prices

Sales and prices: the market consolidates growth

In the first nine months of 2025, residential sales in Italy increased by 9.2% compared with the same period in 2024. The ten main Italian cities also recorded positive performance, up 6.5%, mainly supported by credit-backed purchases. 

After the 2025 price peak, at +3%, the market is expected to move towards gradual normalisation in 2026, with +1% growth.

The residential market is moving towards more stable and selective growth

Housing demand, mortgages and new market balances

Purchase intentions are also rising in 2025, supported by more stable credit costs and renewed household confidence. Mortgage demand is increasing, with the average ticket reaching €141.830 and requests increasingly concentrated above €100.000. 

However, imbalances remain clear: buyers favour three-room homes and efficient properties, while available supply still struggles to meet new housing needs.

New builds and rentals: an increasingly selective market

The report outlines an Italian residential market evolving towards greater balance. Sales growth and renewed demand confirm the sector’s resilience, while affordability, supply quality and the ability to meet changing housing needs are becoming increasingly strategic. Interest in efficient and sustainable new-build homes continues to grow, especially in major urban centres.

The Italian residential market continues to offer opportunities, but within increasingly selective dynamics. New-build supply remains limited compared with potential demand, while the rental market confirms its dynamism, supported by young people, singles and households seeking greater housing flexibility. 

In this scenario, correctly interpreting market data and local specificities becomes essential for operators, investors and developers seeking sustainable medium to long-term value.