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A new start for the real estate market
The Italian real estate market finally seems to see the light of day after a period of uncertainty and stagnation. According to the third Observatory on the 2024 Real Estate Market created by Nomisma, the 13 main Italian markets, including Milan, Rome and Naples, show signs of recovery. This change is attributable to two main factors: the resilience of household incomes and the restoration of less restrictive conditions of access to credit.
However, despite the increase in sales, house prices are suffering a slowdown, closing the year at the levels of the first half of 2024.
Factors that influence prices
Nomisma’s report highlights that the price invariance in the second half is the result of a revision of expectations on the part of sellers, who are faced with a lower willingness to grant discounts during negotiations. Milan, in particular, recorded a 1.5% decline in prices on a biannual basis, followed by Bari, Rome, Turin and Venice. Despite this, the monitored markets saw an average increase in prices, with +1.7% for homes in excellent condition and +1.5% for those in good condition
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The growing rental market
Another interesting aspect that emerged from the analysis concerns the rental market. With access to credit remaining difficult for many families, renting is becoming the only viable option for an increasing number of people. The share of families that chose to rent increased from 56% in 2023 to 59.3% in 2024. The rents, especially in Milan and Rome, saw a significant increase, respectively by 3.2% and 4.7%. This trend was further accelerated by overcrowding in the rental segment, which pushed rents to grow by more than 3% per year.
Sales and rental times
Another interesting fact concerns the time needed to conclude a sales negotiation. On average, it takes about 5 months to sell a home, with Genoa having the longest time (5.5 months) and Milan the shortest (4 months). On the other hand, the time to rent a home has halved, stabilizing under 2 months. This data suggests a market in motion, where the dynamics of supply and demand are rapidly changing.
