Market Report 2026
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Market Report Italy 2026: Analysis, Prices, and Forecasts of the Italian Real Estate Market
The Market Report Italy is a comprehensive analysis tool of the Italian real estate market, prepared by Nomisma with up-to-date data on property transactions, housing prices, and residential mortgages. This report provides a detailed snapshot of the macroeconomic landscape, residential sector dynamics, and trends in key economic indicators. Thanks to the Market Report Italy, industry professionals, investors, and families can make informed decisions, understand the evolution of property prices, and evaluate opportunities for purchase or investment.
House Prices in Italy in 2026: Moderate but Real Growth
The expansion of transactions has supported the growth of residential property prices, although at a slower pace compared to previous years.
In 2025:
+1.3% for homes in excellent condition
+1.9% for homes in good condition
A stronger increase was observed in the “to be renovated” segment, indicating significant demand pressure even in entry-level market segments.
For 2026, forecasts indicate a further slowdown to +1.0% per year in major cities, compared to +1.4% recorded in 2025. However, it should be noted that rising inflation will reduce the real value of housing prices over the three-year period—an important factor for those considering a purchase as a long-term investment.
Residential Mortgages 2026: Volumes on the Rise After Two Years of Contraction
The residential mortgage market confirmed in 2025 the recovery that began at the end of 2024. Four ECB rate cuts of 25 basis points each, between January 2025 and February 2026, gradually reduced the cost of credit, bringing demand back to strong levels.
In the first three quarters of 2025, new mortgages reached approximately €35.9 billion, representing a +30.8% increase compared to the same period in 2024.
Nomisma forecasts an annual growth of +2% until 2028, with total volumes approaching €53 billion, in line with levels recorded in 2021–2022.
Who Buys in the Luxury Segment in Italy
The international component accounts for an average of 35% of buyers in the luxury residential market, with significant variations across different areas in terms of origin, purpose of purchase, and budget. In the alpine and lakeside destinations of the North, European clients prevail; in the high-end markets of Campania and Sicily, North American buyers have a structural presence; the Lombard lakes and Lake Maggiore consistently attract buyers from Germany and Switzerland.
In almost all the markets analyzed, a significant share of international purchases is completed without bank financing, confirming a buyer profile with high purchasing power and a long-term investment horizon. Understanding the composition of demand in individual markets is now one of the most important factors for properly guiding value-enhancement and sales strategies.
Market Report Italy 2026
FAQ
The Italian real estate market in 2026 shows positive signs. According to Nomisma’s forecasts, residential transactions could reach approximately 785,000 annual deals by 2028, supported by declining mortgage rates, contained inflation, and a recovery in household purchasing power.
Yes. In 2025, prices for homes in excellent condition increased by 1.3%, while those in good condition rose by 1.9%. For 2026, a slight slowdown is expected, with an average growth of 1.0% in major cities, in a context of inflation that will gradually reduce real housing prices
Market conditions in 2026 are generally favorable for buying: mortgage rates are declining compared to the peak of previous years, prices are growing at a moderate pace, and demand remains strong. However, the decision always depends on individual circumstances, the geographic area, and the purpose—whether it is a primary residence or an investment.
After two years of contraction, the mortgage market saw a strong recovery in 2025: in the first three quarters of the year, new mortgages issued reached €35.9 billion, up 30.8% compared to 2024. The growth was mainly driven by Central Italy (+44.6%) and the North-East (+36.8%).
Market Report Italy 2026 is produced in collaboration with Nomisma, an economic research company based in Bologna, active since 1981 in the analysis of real estate, financial, and cultural heritage markets. Nomisma’s analyses form the methodological basis for the forecasts on transactions, prices, and credit markets presented in the report, providing an independent and verifiable reference framework.
The collaboration between Engel & Völkers and Nomisma combines the extensive coverage of the network — with over 100 active offices across Italy — with the rigor of quantitative analysis, delivering a tool that integrates aggregated market data with direct observation of local markets.
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Engel & Völkers Italy
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20121 Milan, Italy
Tel: +390645548120