Palermo surges 26% as Italian property market awakens from decade-long slumber

After a decade of stagnation, Italy is finally moving. In 2025, residential sales rose across the country: Palermo led the way with +26%, Turin +9%, Rome +8%, Naples and Bologna +7%, and Milan +6%. The national average growth reached 6.6%.

The upturn is driven primarily by young buyers under 35, who are drawing on inheritances and taking out mortgages more aggressively. The number of mortgages issued jumped 18.8% to 404,530. However, new-build properties and direct purchases from developers continue to lag.

Meanwhile, the older housing stock is losing ground: over the past 15 years, prices for new homes have risen 30%, while older properties have fallen 11%. The reason is straightforward—renovating an older property is expensive, and inflation and energy bills are eating into buyers' budgets. For 2026, forecasters predict a slowdown: sales growth of 1–1.5% and price growth of 2%.

The Italian market is waking up, but selectively.