News / From the associates

In its in-depth analysis, IPI presents trends in the residential real estate market for the cities of Florence, Bologna, and Genoa in the first half of 2025. Despite some challenges in the new-construction segment, the real estate sector is showing signs of recovery and stabilization. Following the inflationary phase, the market is seeing an increase in sales and rentals, a decrease in interest rates, and growing attention to energy efficiency. In Florence, there is a recovery in demand and a rise in sales prices, thanks to the resolution of difficulties related to access to credit. Demand for home purchases is growing, particularly for primary residences, but interest in income-generating investments is also increasing. The rental market is also expanding, with rents rising by +2.3% on a half-yearly basis and +3.5% annually, with more pronounced increases in semi-central areas (+3.3%) and central areas (+2.6%). Gross yields reach 5.3%, the highest level in the last twenty years. In Bologna, the market stands out for its strong dynamism, driven by brisk demand and limited supply. Only 2% of the housing stock is less than ten years old, and new construction accounts for about 20% of the total supply, with 3,235 units on the market (1% of the total stock). Over the past twenty years, approximately 4,500 homes have been built, insufficient to meet growing demand, driven in part by an increase in mortgage-financed purchases (71% of transactions). Average prices continue to rise: +4.3% for new or renovated properties in prime areas and +1–2% in urban areas; +4.9% for homes in good condition in the city center and +2.5% in the suburbs. Average discounts stand at 3.5% for new homes and 11–12% for existing homes, with more modest reductions in the historic center. Average time to sale, at 4–5 months, is down slightly. In Genoa, the residential market has shown strong vitality, with prices rising by +5.6% year-over-year and over 2,400 sales completed. Demand remains robust, but supply is tight: less than 0.25% of the housing stock is less than ten years old, and new construction accounts for only 3.9% of the total. As of September 2025, there are approximately 6,400 units for sale (2% of the total housing stock), a sign of a dynamic market but one lacking in new supply. Price growth is driven by the scarcity of available housing and the difficulty in offering solutions that meet the required quality and energy standards. Read the reports:

Florence: https://www.ipi-spa.com/file-download/download/public/2859
Bologna: https://www.ipi-spa.com/file-download/download/public/2858
Genoa: https://www.ipi-spa.com/file-download/download/public/2857