Turin surpasses Milan in housing price increases, as living in the city becomes prohibitive for a growing number of families. The latest Istat data show a slight slowdown in house price increases across Italy in the second quarter, but not beneath the Mole. At the national level, year-on-year price increases fell from 5.1% in the first quarter to 4% in the second. In Turin, they are more than double the average, reaching 8.5%.
In Milan, on the other hand, the race for property appears to be slowing after the real estate boom: increases have levelled off at 2.4%, with the sharpest deceleration seen in new homes, which went from +20.1% in the first quarter to +1.1% in the second. Existing homes fell less sharply, from +4.2% to +2.4%. New construction in the Lombard city may be suffering from investigations into planning permits, given that in other major cities it is performing more strongly. In Rome, against an average price increase of 6.4%, new builds posted +8.3% and existing properties +6%. In Turin, prices for new builds reached +23.3% while existing properties came in at +7%. The national statistics institute recorded price increases across all monitored cities, as well as in all macro-regions of the country. Above-average price increases are particularly evident in Central Italy (+5.1%) and the North-East (+4.2%).
In the North-West, buying a home costs 3.9% more than last year, and in the South and the Islands, 2.6% more. The average house price increase recorded for 2026 stands at 3.8%, above the general inflation rate, and in the second quarter compared to the first there was a quarter-on-quarter increase of 1.7%. Despite the price rises, transaction volumes have remained essentially flat. The Real Estate Market Observatory of the Revenue Agency estimates a year-on-year change of +0.1% in the second quarter of 2026 for the residential sector (following the +4.4% of the previous quarter). Transactions exceeded 200,000.
Among major cities, home purchases increased by 0.4% in Rome, 0.6% in Turin, while in Milan they were unchanged compared to the previous year. The most dynamic markets were Naples (+4.2%) and Genoa (+2.9%), while in two cities, Florence and Palermo, transactions declined by 8.3% and 2.6% respectively. Nearly 73% of homes purchased by private individuals benefited from first-home tax relief, and approximately 47% were financed with a mortgage. The average interest rate on the first instalment is stable, at around 3.6%.
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