In Italy, contrary to all expectations, house prices registered a 2.6% increase compared to 2019. More precisely, the price index recorded a rise in the first and second quarters respectively, equal to 0.9% and 3%. It was only in the third quarter a sharp drop of 2.5% occurred and then rose slightly in the fourth quarter for a value equal to 0,3%.
However, it is essential to point out that the average house prices across Italy are not increased due to an increasing amount of demand but simply due to the boom in demand for apartments located in cities, which are much more expensive than provincial apartments.
Driving the market were the Northwest, where prices rose by more than 5% in 12 months, and the North-East, which recorded a good increase of 2.3%. Positive fluctuations but close to zero were recorded in the Center (+0.7%) and on the islands (+0.2%), while in the South, the cost of the brick fell by 0,4%.
What is surprising is the gap that has emerged between small and large cities: cities with over 250 thousand inhabitants have resisted the health emergency better, at least until the last quarter of 2020, and have seen prices rise by 0.9%; those with fewer than 250 thousand inhabitants, on the other hand, have those with fewer than 250,000 inhabitants closed the year with a drop of 0.2%.
Considering the regional capitals, the one that has exceeded 2020 most brilliantly is Milan, which with an average request of over 3,700 euros per square meter marks an increase of 9.2%. Rome and Bologna also did well, registering a less impressive but still positive growth (+1.5% and +2.5% respectively), while the most expensive city in Italy, Florence, closes with little suffering with a drop of 0.8%.
Chart 1 – Percentage of change in average Italian housing price over the four quarters of 2020 compared to 2019
Chart 2 – Percentage differences in the various areas of Italy in terms of price changes
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