Italian Housing Market Shows Signs of Stabilization and Price Growth Moderation
The Italian housing market continues to show resilience, with new data offering encouraging signs of stabilization and a slowdown in price declines. According to recent reports, the share of real estate agents reporting stabilizing prices has increased significantly, reaching a three-year high. While concerns about affordability persist, there are early indications that the market is’
finding a new equilibrium.
Price Trends Stabilize, Demand Shows Improvement
The third quarter of 2024 saw a notable shift in the real estate market landscape. After months of decline, more agents are reporting stable property prices. The absence of sharp decreases contributes to a more balanced environment
Although prices are adjusting to more sustainable levels, buyer demand is beginning to strengthen, indicating a renewed sense of confidence in the market.
Overall, disequilibrium persists between supply and demand.
Mortgage Restrictions Ease, Supporting Market Recovery
A contributing factor to the improving market sentiment is the easing of mortgage restrictions. Hesitation among potential buyers, reported by real estate agencies last year, appears to have diminished.
Mortgage Approvals on the Rise
Data suggests a marked increase in mortgage approvals, confirming that access to financing is growing less restrictive than it was.
Rental Market Shows Continued Growth but Early Signs of Slowdown
The rental market remains robust, driven by strong demand and reduced availability.
Rental prices continue to rise, albeit at a slightly slower pace compared to the rapid increases observed in previous quarters.
Several factors, including a preference for short-term rentals by property owners, contribute to the reduced supply available for traditional long-term leases.
Which regions or segments of the Italian housing market are experiencing the strongest performance?
## Italian Housing Market Sees Steady Growth, Analyst Says
**Anchor:** Welcome back. Joining us today is Sara Bianchi, a real estate analyst with [Name of Firm], to discuss the latest trends in the Italian housing market. Sara, thanks for being here.
**Sara Bianchi:** It’s my pleasure to be here.
**Anchor:** Let’s talk about the latest figures. Statista predicts a growth of 0.88% in the Italian real estate market between 2024 and 2029, reaching a market volume of $10.53 trillion by 2029 [[1](https://www.statista.com/outlook/fmo/real-estate/italy)]. That’s significant growth, but perhaps a bit more subdued than in previous years. What’s driving this trend?
**Sara Bianchi:** That’s right. While the market is still expanding, we are seeing a moderation in price growth compared to the boom we witnessed in recent years. This is partly due to rising interest rates and a more cautious approach from buyers. However, the Italian government has implemented policies and incentives [[1](https://www.statista.com/outlook/fmo/real-estate/italy)]to support the market, which is helping to maintain stability.
**Anchor:** That’s reassuring to hear. Are there any particular regions or segments of the market that are performing particularly well?
**Sara Bianchi:** We’re seeing continued strong demand in popular tourist destinations and major cities like Milan and Rome. However, there are signs of growth in smaller towns and rural areas as well, driven by remote work trends and a desire for a better quality of life.
**Anchor:** So, a positive outlook for the Italian housing market. Thanks for those insights, Sara.
**Sara Bianchi:** Thank you for having me.
