Italian property prices are rising fast once again. Although still only where they were in mid-2013 and some way off the 2011 peak, homeowners are seeing a good return on the price they paid. But what sort of homes are seeing the fastest price rises and where are the bargains? Here is the latest property market update for Italy.
Italy property market update
In the first quarter of 2022 Italy’s property market has renewed the sharp recovery which began before the pandemic in 2020 but stalled more recently. According to the latest House Price Index from Istat, Italy’s official statistics institute prices rose by 1.7% in the first quarter of 2022, which amounts to 4.6% compared to last year.
The increase was driven by the price of new homes, which rose by 5%, albeit a slight slowdown from 5.3% in the previous quarter, while existing dwellings are seeing a slightly slower recovery.
In terms of the number of properties sold, this increased by 12% compared to last year.
Looking at the wider economy in Italy there is a gap between consumer and business confidence. Istat’s measure of buyer confidence has dropped from almost 103% to 98% in June 2022, while confidence in the business community rose from 111% to 113.6%.
Data from one of Italy’s leading property websites showed that the highest asking prices in May 2022 were in the Trentino South Tyrol region. Here the average sale price was just under €3,000 per square meter. Close behind were other northern regions the Valle d’Aosta and Liguria.
At the other end of the price scale – and the country – were Sicily, Puglia and Calabria, all with asking prices below €1,300.
Tuscany, the most popular area for international buyers, has an average of around €2,400 per square metre. Bear in mind however, that it is a very large area with large regional variations. See our article on more affordable regions, with excellent Italian properties under €200,000 for ideas.