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OMI Report Q2 2025: +8.1% in Residential Property Sales in Italy

According to data from the OMI Observatory of the Italian Revenue Agency, in the period April–June 2025 residential transactions show widespread growth: analysis by area, mortgages, rentals, and outlook.

author: Internal Editorial Team
02-10-2025
5 mins to read

In the second quarter of 2025, the Italian residential real estate market recorded significant growth in property sales: +8.1% compared to the same period in 2024, with over 201,000 transactions finalized. These figures are drawn from the OMI Observatory report (Italian Revenue Agency).

In this article, we will provide a detailed analysis of territorial dynamics, the role of mortgages, the new-build segment, and the implications for the rental market, offering valuable insights for professionals, investors, and potential buyers.

Main growth data and territorial distribution

+8.1% in property sales: national trend

In Q2 2025, residential property sales exceeded 201,000 units, marking an annual increase of 8.1% compared to the same period in 2024.

This represents the fifth consecutive quarter of growth for the residential sector in Italy.

Main cities vs smaller municipalities

Growth is widespread throughout the national territory:

In main cities, sales rose by +7.2%.
In smaller municipalities, the rate was slightly higher: +8.4%.

South, North, Center: geographical differences

Macro-areas also show varying results:

Northwest: +9.2%
Northeast: +8.5%
Center and Islands: +7.7%
South: more modest growth, +6.0%

These figures highlight a strong but uneven recovery, with Southern Italy remaining the area with the weakest growth momentum.

Top-performing cities

Among major cities, double-digit growth was recorded in:

Turin: +11.3%
Palermo: +10%

Other cities posted positive but more moderate variations:

Milan: +6.6%
Bologna: +6.1%
Genoa: +5.6%
Rome: +4.1%
Florence: +3.9%

Naples is the only major city showing a decline or stability, diverging from the overall positive trend.

This variability indicates that in many areas growth is driven more by local factors than by nationwide dynamics.

The role of mortgages and “first home” incentives

Mortgage-backed demand

In Q2 2025, about 46% of property purchases by individuals were supported by a mortgage.

This is an increase compared to the previous year, pointing to greater confidence in relying on credit for home purchases.

The total amount financed reached approximately €12.4 billion, up by about €2.7 billion from Q2 2024.

The average initial interest rate on mortgages stood at 3.28%, a 6-basis-point increase compared to the previous quarter, but still well below the same period in 2024 (-42 basis points).

“First home” benefits

A significant share of purchases by individuals benefited from the “first home” tax incentive: about 73% of total transactions.

In some cities, such as Rome, this percentage exceeded 85%.

This underscores how home purchases remain strongly linked to residential and family purposes.

New builds vs existing homes

Decline in new-builds

The new-build segment did not follow the overall positive trend: in Q2 2025, new property sales fell by 7.2% compared to the same period in 2024.

The share of newly built homes remained below 6% of total transactions.

Boom in existing homes

Conversely, the existing property market posted a +9.1% increase in the same period.

This confirms an already observed trend: demand is primarily focused on existing housing stock, due to both more affordable costs and greater availability.

Size and surface areas

The total transacted property surface (STN) grew slightly faster than the number of units, at +9%.

The increase was more pronounced for larger properties, suggesting a growing preference for bigger living spaces or larger family units.

Factors behind the recovery

Latent demand: In previous years, the Italian housing market was affected by difficult economic conditions, tighter credit access, and uncertainty. Pent-up demand found renewed momentum in 2025, driving stronger transaction growth.
Interest rates still attractive: Despite a slight uptick compared to the previous quarter, mortgage costs remain competitive compared to 2024, supporting demand.
Preference for existing homes: The decline in new-builds and the growth in existing properties show buyers favor ready-to-occupy homes, with lower costs and shorter waiting times.
Rental market pressure: Shortages in urban rental supply are pushing rents upward, attracting investors to residential rentals, particularly in the student and short-term segments.

Implications for real estate investments

Targeted territorial strategies: Focus marketing and promotions where growth is strongest (Northwest, Northeast, metropolitan areas) to maximize returns.
Upgraded properties: Offering renovated and energy-efficient units can capture premium demand.
Client segmentation: The strong presence of “first home” buyers suggests the need for tailored mortgage consultancy services and family-oriented solutions.
Rental market opportunities: Investing in properties for student housing or short-term rentals can provide attractive leverage.
Timing operations: Taking advantage of current market momentum and closing deals in the short to medium term may prove more beneficial, given the risk of a future slowdown.

The OMI Report for Q2 2025 confirms a robust recovery phase for the Italian residential real estate market, with +8.1% in property sales, widespread growth, and increased reliance on mortgages. Despite challenges in the new-build sector and uneven growth across regions, the overall outlook remains favorable.

For professionals and investors, this is the right moment to seize opportunities with targeted strategies, especially in the most dynamic areas. However, it is crucial not to underestimate possible signs of slowdown and the importance of focusing on efficient, well-located properties.

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