News / From the associates

The Real Estate Data Hub provides an up-to-date overview of the Italian real estate market, focusing on major cities such as Milan, Rome, Genoa, and Palermo, as well as the most significant asset classes. At the macroeconomic level, the first half of 2025 in Italy was characterized by fluctuating trends: GDP grew at a moderate rate, unemployment remained at historic lows, and inflation stayed just below 2%, mainly due to contained energy costs; at the same time, the European Central Bank cut interest rates to 2%, thereby supporting the economic recovery and that of the real estate sector. Despite mixed signals regarding consumer and business confidence, the real estate market demonstrated resilience and dynamism, with investments driven primarily by retail, hospitality, and residential sectors, while attention is growing toward ESG criteria that influence both investor strategies and tenant choices. In the first half of 2025, investments in the commercial sector grew by 50% compared to the same period in 2024, with foreign capital accounting for a significant share—nearly 66% of the total. Retail accounted for 28% of investments, followed by hospitality at 25%, logistics at 14%, offices at 13%, and residential at 7%. Prime rental rates for high-quality properties remained stable or rose slightly, while urban regeneration continues to be a central theme, with over 30% of new logistics developments on brownfield sites. The residential market showed signs of strong growth, with a more than 9% increase in transactions compared to the first half of 2024 and a 2.4% year-over-year rise in average prices. Milan led this trend with a 9% increase in both the value and volume of sales, while Rome recorded a more modest but steady 3% rise in prices. The focus on sustainability is reflected in the real estate energy market: 72–75% of sales still involved properties in the “low” energy efficiency classes (E, F, and G), but this share is declining, while sales of properties in energy classes C–D and A–B are increasing. The green mortgage segment is expanding, with an average fixed rate of 2.19% and monthly payments 15% lower than those of traditional mortgages, thereby encouraging the purchase of energy-efficient properties.

Download the report: https://www.yardreaas.it/images/research_pdf/RE_data_hub_12_2025.pdf