The residential real estate market - Italy (2025)

1.2 The global market

The residential real estate market is estimated at $**.** trillion in **** and is expected to reach $**.** trillion by ****, with a compound annual growth rate (***) of *.** percent over the ****-**** forecast period.

Global real estate market Italy, ****-****, in trillion USD grandviewresearch.com

From a revenue perspective, therental formula dominates the market, holding a **.*% share. This trend is mainly due to therise in housing prices in the most developed countries, which has led to significant growth in the number of renters, thus supporting the expansion of this segment. Geographically, the Asia-Pacific region is the market leader, with a **.* percent share. The growth can be attributed to therising rate of property ownership in the area, with China emerging as the region's largest market, accounting for more than **.* percent of the overall share. In addition, the growing number of tourists in developing countries, including India, the Philippines, Indonesia, Thailand and Vietnam, is another driving factor for the real estate market in the region. The outlook for the Middle East and Africa indicates significant growth, with a compound annual growth rate (***) of *.* percent between **** and ****. This development is mainly fueled by the growing number of residential and commercial projects, which are transforming the region's real estate ...

1.3 The European market

At the European level, the real estate market starts with a value of $*.** trillion in **** and experiences steady growth year after year, reaching $*.** trillion in ****, $*.** trillion in ****, and $*.** trillion in ****. The expansion continues with a value of *.** trillion in ****, reaching *.** trillion in ****. This trend shows stable and continuous growth in the sector, with an overall increase of **.* percent over ****, confirming the robustness of the European real estate market in the medium to long term.

European residential real estate market value Europe,****-****,Trillions of dollars Mordor Intelligence

1.4 The Italian market

In Italy, revenue figures calculated for the year **** show an overall estimate of about *** billion euros, down from **** by *.* percent, or ** billion euros less. The estimate for **** is a growth of *.* percent, which would have brought the market value to ***.* billion euros.

Residential real estate market Italy, ****-****, billion euros agenziaentrate.gov.it

Among the most sought-after asset classes, the logistics and office sectors stand out, both of which are attractive to investors. The residential sector shows similar dynamics tohospitality, with a ** percent share of investments, confirming its strategic role in the real estate landscape.

Real estate market investment value by sector Italy, ****-****, in percent idealista.it

The real estate sector is divided into several asset classes, each with specific characteristics and dynamics that determine its attractiveness to investors. Among these, the office segment includes space used for business purposes, located mainly in urban areas and financial centers. This market includes corporate buildings, co-working spaces and executive properties, which are an essential pillar of the urban economy and the evolving world of work.

The retail sector, on the other hand, refers to retail properties, such as stores, malls and commercial spaces, which are strongly influenced by consumer trends and the ...

2.1 Demand trends

This section will analyze the following indicators, which have been developed on the basis of the most recent reports from theInternal Revenue Service: NTN (***) represents the total number of real estate units bought and sold in a given period, considering the share of ownership actually transferred. This indicator provides an accurate measure of real estate market trends. STN (***), on the other hand, indicates the total area of properties bought and sold, weighted by the share of ownership transferred. This parameter makes it possible to assess not only the number of transactions, but also the actual size of the properties involved in the market. Buying and selling

The residential real estate buying and selling market in Italy has been on an up-and-down trend in recent years. After a decline in ****, the sector experienced a strong recovery, with a **.* percent increase between **** and ****, rising from ***.** thousand to ***.** thousand units bought and sold. However, there was a *.* percent contraction in ****, with the number of transactions falling to ***.** thousand units. This trend shows a sustained growth phase until ****, followed by a decline in ****, likely influenced by economic and financial factors, including rising interest rates and macroeconomic uncertainty.

Residential real estate NTN Italy, ****-****, thousands Internal ...

2.2 Demand drivers

Socio-demographic and lifestyles impacts

During the**** General Assembly of Assoimmobiliare, the research Socio-demographic and lifestyles transformations: impacts on the real estate product developed together with Nomisma was presented to investigate how demographic dynamics will transform real estate demand, with a focus on housing.

The data that emerged show a strong housing mobility that will invest young people and young adults in the coming years: ** percent of the households surveyed by Nomisma are aware that they will have to respond to housing needs different from the current ones. The share rises to **% for the **-** age group.

The property's state of preservation,energy efficiency, building type, and area are the most important drivers driving demand for housing.

In particular, the elderly population favorshousing that is efficient and in good condition while the young and young adult population is more sensitive to the size and amenities included in the apartment building.

The ** percent of the population living in urbanized settings favors the city center. The suburbs accommodate the demand of the young segment of the population while the areas outside the built-up area see a greater share of demand expressed by the adult population (***).

Construction quality andenergy efficiency are the most requested and ...

2.3 The geographical distribution of demand

The estimated exchange value (***), up *.* percent compared to ****, followed by Latium with **.* percent.

Notable increase in Basilicata and Umbria compared to **** taking into account that the change refers to an amount in absolute value lower than in other regions. Growths of more than * percent, compared to ****, are observed in Abruzzo and Valle d'Aosta, Calabria and Sardinia.

2.4 New trends in demand

Sustainability and technological buildings

The focus on environmental sustainability is growing steadily. Buyers and tenants are increasingly interested in buildings that use renewable energy, eco-friendly materials, and smart solutions to reduce environmental impact. In recent years, the construction industry has witnessed a remarkable shift toward digital transformation, which has revolutionized the process of designing, constructing, and managing buildings and the built environment. This wave of technological advances has not only improved efficiency and productivity, but has also played a key role in promoting sustainability in the construction industry.

building Information Modeling (***) represents one of the most important digital transformations for sustainable building design. Indeed, with BIM, building professionals can optimize the design, construction, and management phases of a project, reducing material waste, energy consumption, and carbon emissions. Through virtual simulations and interference detection, potential problems and inefficiencies can be identified and resolved before construction begins, saving time and resources.

Similarly, the use of"computational and parametric design," through advanced technologies, has proven to be a powerful tool for improving sustainability in building design. Such software allows architects and designers to simulate and evaluate various aspects such as solar radiation, lighting, energy consumption, and thermal performance of a building.However, other significant ...

3.1 The market structure

The graph shows the trend in the number of Italian enterprises classified under ATECO code **, related to real estate activities, between **** and ****. In ****, the number of enterprises was ***,***, with a slight decline in **** to ***,***. From ****, there is a steady growth, reaching ***,*** enterprises, ***,*** in **** and a high of ***,*** in ****. Overall, there is an increase of *.* percent between **** and ****, showing a recovery and strengthening of the sector in recent years.

Number of enterprises ATECO code ** Italy, ****-****, in number istat.it Sole proprietors, freelancers and the self-employed show steady growth, increasing from **,*** in **** to **,*** in **** (***). General partnerships (***). Joint stock companies (***).

Number of employees: The graph shows the trend in the number of employees in Italian enterprises with ATECO code ** (***), before peaking at ***,*** in ****. A slight decline is observed in ****, with ***,*** employees, followed by a sharper drop in ****, when the number falls to ***,***. In **** there is a slight recovery, bringing the total to ***,*** employees. Compared with ****, the peak employment year, the decline through **** is *.* percent. Number of employees enterprises ATECO code ** Italy, ****-****, in number istat.it

To better understand the composition of the market, as the ATECO ** code encompasses several categories of real estate activities, the percentage breakdown according to more circumscribed activity ...

3.2 The value chain

The main players in the housing market, diversified according to their main activity, are reported.

3.3 The real estate agencies

Dils s.p.a: founded in ****, was born from the merger of Redilco and Sigest, companies with fifty years of experience in real estate. It specializes in consulting, brokerage and integrated real estate services, covering sectors such as logistics, office, retail, hospitality and living. With offices in Milan, Rome and Amsterdam, Dils is recognized for its soundness, innovation and impact in the real estate market, both in Italy and Europe. It manages more than * million square meters and realizes annual transactions of *.* billion euros.

Cbre s.p.a: founded in **** in San Francisco, is a global commercial and investment real estate services company. It operates in more than *** countries with over ***,*** professionals, offering integrated services supported by deep market knowledge, superior data and proprietary technology. CBRE excels in providing multidimensional services in every area of commercial real estate, contributing to its clients' success through innovative real estate solutions. The company is also committed to corporate social responsibility, driven by the needs of the cities in which it operates and the communities it builds.

Risorse Per Roma s.p.a: a company with ** years of experience in planning, design and land transformation and in management support to the projects of the building ...

3.4 Other market players

Construction companies

Among the most important players in the real estate market are undoubtedly the companies involved in the construction of buildings, without which there could be no building management, brokerage and buying and selling services.

Looking at the number of such companies (***) over a *-year period, we see a decreasing trend that reaches a minimum in ****. However, the following year, ****, the trend reverses with a *.* percent increase in the number of firms.

Number of enterprises ATECO code **** Italy, ****-****, in number istat.it

The following are the main enterprises involved in residential and nonresidential building construction (***) in Italy, in descending order of turnover.

IMPRESA PIZZAROTTI & C. S.P.A: Founded in **** in Parma as a sole proprietorship, it later became a s.r.l. and in **** became a s.p.a. with share capital of *** million euros. It is involved in the construction of complex works: road and highway infrastructures, tunnel works, airports, digh, industrial infrastructures, railroad construction, and health and residential construction projects. The Pizzarotti Group is now present in almost all geographical areas of the world, where they operate with about *,*** employees.

TECHBAU S.P.A: was founded in **** and operates nationally and in Europe in the field ...

4.1 Supply analysis

Each urbanized context has different types of buildings. it is this that makes the landscape complex and comprehensive in its proposal for services, work, reception and recreation. The destination of the property influences thearchitecture and the quality of the landscape.

As for the residential type, which is the subject of the study, it concerns properties intended for housing.

Residential type properties are divided into different categories, based on size, autonomy and types of finishes.

(***)

4.2 The prices

When we talk about the value of a property we normally refer to its market value, but a home is also characterized in an important way by another indicator, the cadastral value. These two values are united by the fact that they turn out to be indispensable in case one intends to sell the property.

The cadastral value of a property is a useful indicator primarily for tax purposes. In particular, this is used to determine inheritance, gift, registration, mortgage and cadastral taxes. Cadastral value is calculated from the cadastral annuity, which is a value attributed, for tax purposes, to income-producing properties and can be found simply by consulting a cadastral view of the property in question. The cadastral income should be revalued by * percent and then multiplied by a coefficient that depends on the cadastral category of the property.

The market value is the commercial value of a property: therefore, it is that value that is taken as a reference when one intends to set the sale price of the property. This indicator is obtained as follows:

Market value= Commercial surface area x Price per square meter x Coefficients merit

Commercial surface area: is the sum of the covered area ...

4.3 Real estate price trends in Italy

In October ****, an average of € *,*** per square meter was demanded for residential properties for sale, an increase of *.** percent compared to October **** (***). Over the past * years, the average price in Italy peaked in June ****, at € *,*** per square meter. The month in which the lowest price was demanded was December ****: an average of € *,*** per square meter was demanded for a property for sale.

Price trends of properties for sale Italy, ****-****, €/m^* real estate.co.uk

In October **** for residential rental properties an average of € **.** per square meter per month was demanded, an increase of *.**% compared to October **** (***). Over the past * years, the average price in Italy peaked in September ****, at € **.** per square meter. The month in which the lowest price was demanded was December ****: an average of € **.** per square meter per month was demanded for a rental property.

Rental property price trends Italy, ****-****, €/m^* real estate.co.uk

(***)

A *-room house has an average cost of ***,*** euros, which gradually increases as the size increases. Houses with * rooms have an average price of €***,***, while for * rooms the value rises to €***,***. Prices for larger houses reach ***,*** euros for *-room and reach ***,*** euros for those with * rooms. The average increase among categories ...

4.4 New supply trends

Buildings with low environmental impact

Given the growing concern about environmental issues, sustainability has been becoming the main goal for the future development of construction and the real estate market for a few years now. A commitment that in Europe led on March **, ****, to the approval of the Case Green directive.

Low-impact buildings arise as a response to growing concerns about climate change and thus the need for sustainability in the housing market. A low-impact building is essentially a well-insulated, low-consumption, low-waste home designed and built in perfect harmony with its surroundings.

These criteria for sustainable architecture apply not only to newly constructed houses, but also to old buildings that can be transformed into low-impact housing through energy efficiency measures and the intelligent use of renewable energy.

The reuse and redevelopment of existing buildings is a major challenge for the overall reduction of the building sector's environmental impact. Especially in a real estate market like Italy's, where more than * million properties need green renovation by ****.

(***)

Smart home technology

Demand for products in the Smart Home sector, so interconnected devices that simplify daily life, has markedly increased, and the growth shows no sign of stopping.

In fact, real estate developers are ...

4.5 New Supply Trends

Buildings with low environmental impact

Given the growing concern about environmental issues, sustainability has been becoming the main goal for the future development of construction and the real estate market for a few years now. A commitment that in Europe led on March **, ****, to the approval of the Case Green directive.

Low-impact buildings arise as a response to growing concerns about climate change and thus the need for sustainability in the housing market. A low-impact building is essentially a well-insulated, low-consumption, low-waste home designed and built in perfect harmony with its surroundings.

These criteria of sustainable architecture apply not only to newly constructed houses, but also to old buildings that can be transformed into low-impact housing through energy efficiency measures and the intelligent use of renewable energy.

The reuse and redevelopment of existing buildings is a major challenge for the overall reduction of the building sector's environmental impact. Especially in a real estate market like Italy's, where more than * million properties need green renovation by ****. (***)

Smart home technology

Demand for products in the Smart Home sector, so interconnected devices that simplify daily life, has markedly increased, and the growth shows no sign of stopping. In fact, real estate developers are beginning ...

.

5.1 The legislation

The following are the main laws concerning the buying and selling of real estate.

Buying and selling (***).

The sale is a consensual contract, since the mere consent of the parties is sufficient for its completion, while the actual delivery of the thing is not required; for consideration, since both parties receive aneconomic benefit in exchange for their performance (***).

The Civil Code regulates the sale of movable property (***).

The special law(***).

While the sale of movable property does not require special formalities, deeds relating to the sale of real estate must always be in writing (***) and are subject to transcription in the appropriate registers.

In addition, when deciding to sell a property, in order for the sale to be successful, it is necessary to prepare a number of documents that give specific information about both the owner and thedwelling.

Energy performance certificate Deed of provenance of the property Rasterized cadastral planimetry Mortgage view of the property Historical cadastral survey Documents proving the regularity of the property and its installations, as established by law Condominium documents Documents relating to leases Identity card and social security number Certificate of residence, birth certificate and certificate of marital status Residence permit

Regarding house taxation, the Budget ...

5.2 The incentives

The law provides a number of tax breaks and benefits that save on taxes and costs in reference to real estate, the following are the bonuses in effect.

Green home purchase bonus

The bonus consists of an IRPEF deduction equal to ** percent of the VAT paid on the purchase of a "green" house, i.e., belonging to energy classes A and B.The bonus is applicable only if the purchase will take place by December **, **** directly from the construction company, without intermediaries and without spending ceilings. Therefore, it applies only to new construction, not to buildings of historical value, churches or technical buildings.

Superbonus **%

The subsidy is available to individuals who, outside the exercise of business, art or profession, incur expenses for interventions facilitated by the **% superbonus and meet the following requirements: a) the applicant has a reference income not exceeding **.*** euros; b) the applicant has the right of ownership or real right of enjoyment over the real estate unit that is the subject of the intervention or, for interventions carried out by condominiums, over the real estate unit that is part of the condominium; c) the real estate unit is used as the applicant's main residence.

Architectural barriers bonus

This ...

5.3 Conclusion

Italy's residential real estate market is in a stable phase, amid a global context of growth and a European market that maintains a positive trajectory. Although there are no major contractions, the Italian sector appears less dynamic than in other countries, due to structural obstacles such as bureaucracy and difficulties in accessing credit. Demand is influenced by socio-demographic changes and growing interest in energy-efficient properties equipped with smart solutions. However, the responsiveness of supply is still limited, with a fragmented market dominated by small and medium-sized players, although a gradual concentration around a few large groups can be observed. Prices remain at sustained levels, with rents growing more strongly than purchases and sales, reflecting a trend toward greater housing flexibility. Inflation and rising interest rates have made it more expensive to buy property, pushing some of the demand toward the rental market. Companies in the sector are trying to adapt, focusing on innovation, upgrading and new housing solutions, but the speed of transformation is still limited compared to market needs.

6.1 Segmentation

[***]

• DILS S.P.A
• CRIF SERVICES S.P.A
• CBRE S.P.A
• RISORSE PER ROMA S.P.A
• LIONARD S.P.A
• SAIPEM S.P.A
• IMPRESA PIZZAROTTI & C S.P.A
• TECHBAU S.P.A
• CONSORZIO INTEGRA SOCIETA' COOPERATIVA