Istat reports slowing house price growth. Milan sees a rebound.

MILAN – House prices rose slightly in the second quarter. According to data released by Istat , the house price index (IPAB) for homes purchased by households for residential or investment purposes increased by 2.7% compared to the previous quarter and by 3.9% compared to the same period in 2024 (it was +4.4% in the first quarter). Istat notes "a slight deceleration compared to the first quarter of 2025." These trends occur against a backdrop of muted growth in sales volumes: the Revenue Agency's Real Estate Market Observatory recorded an 8.1% year-on-year increase in the residential sector in the second quarter of 2025, after an 11.2% increase in the previous quarter.

Increases city by city

Rome saw a 4.4% year-on-year increase (slowing from the 6.5% increase in the previous quarter), followed by Milan, which saw a 2.0% year-on-year increase (a strong recovery after the -0.1% increase in the first quarter), and Turin, which posted 1.9% growth (decelerating from the 6.4% increase in the previous quarter).

Existing homes increased by 4.5% (a slowdown from the previous quarter's +4.9%) and, to a lesser extent, new homes increased by 1.1% (down from the first quarter's +1.5%).

On a cyclical basis, the increase in the IPAB (+2.7%) is attributable to both the prices of new homes (+4.4%) and those of existing homes (+2.4%).

The acquired rate of change of the IPAB for 2025 is equal to +3.5% (-0.9% for new homes and +4.4% for existing ones).

House prices are rising, both quarter-on-quarter and year-on-year, across all regions. Specifically, the strongest year-on-year growth rate is recorded in the Northeast (+5.4%, accelerating from +5.2% in the previous quarter) and primarily reflects increases in existing home prices (+6.5%) and, to a much lesser extent, new home prices (+0.8%). In the other regions, prices are recording more moderate growth: +3.8% in Central Italy (decelerating from +4.7%), +3.6% in the South and Islands (from +4.7%), and +3.4% in the Northwest (from +3.8%).