News / Insights

The Italian Revenue Agency’s Real Estate Market Observatory reports a further strengthening of the Italian residential market in the first quarter of 2026. Sales reached nearly 180,000 units, marking a 4.4% year-over-year increase, driven by the return of mortgage lending: the share of purchases financed by mortgages returned to nearly 48% of the total, and the capital disbursed exceeded €11 billion, an increase of approximately 11% compared to the same period in 2025. There was also particularly strong growth in newly constructed homes (+14.6%), exceeding that recorded for the market as a whole, while the share of new homes in total transactions remained modest, at 6%.

The regional analysis shows a positive trend in Italy’s major cities, which overall recorded a 6.1% increase in sales, exceeding the national average. Turin leads the rankings with a 9.2% increase, followed by Genoa (+8.7%), Milan (+7.1%), Palermo (+6.6%), Naples (+5.3%), and Rome (+5.1%), while Florence is the only major city to see a decline. Milan remains the most dynamic market for new construction, with 11.6% of sales involving new properties, ahead of Rome and Bologna (9.5%). In major urban areas, there is also significant reliance on credit: in Rome, Bologna, Milan, and Florence, more than half of purchases are financed by a mortgage, while Rome has the highest share of purchases eligible for “first-home” subsidies, at nearly 86%.

The rental market also continues to show signs of resilience, albeit with varying trends across different contract types. Nationally, the number of new contracts remains largely stable, but rents are rising and the share of subsidized contracts is growing, while the decline in standard long-term contracts continues. Rome and Milan remain the main rental markets: in the capital, new leases increased by 7.4%, accompanied by a 10.3% rise in rents, while in Milan, contracts grew by 1% and rents by 6.4%. Particularly significant is the strong growth in subsidized leases, especially in the Milan market, where volumes increased by nearly 56% and rents by over 84%, confirming that growing pressure from housing demand is favoring alternative lease arrangements over traditional standard leases.