📈 Engel & Völkers Italy has presented its Market Report Italy 2026, based on analysis by Nomisma. The key conclusion of the report is that the Italian real estate market is entering 2026 with positive signs of recovery. After a period of cautious buyer activity and pressure from high mortgage rates, the market is gradually returning to more stable momentum.

🏠 According to Nomisma’s forecast, the number of residential property transactions in Italy could approach 785,000 per year by 2028. This scenario is supported by lower mortgage rates, slowing inflation, and the gradual recovery of household purchasing power.

🏦 The mortgage market already showed a notable recovery in 2025. According to the data cited in the report, new residential loans reached approximately €35.9 billion in the first three quarters of 2025. This was 30.8% higher than in the same period of 2024. For a market that had previously experienced two years of declining mortgage activity, this growth became one of the main signals of a turnaround.

📊 The key figures and forecasts are as follows:

— the number of residential property transactions could approach 785,000 per year by 2028;

— new residential loans reached around €35.9 billion in the first three quarters of 2025;

— new mortgage lending increased by 30.8% compared with the same period of 2024;

— Nomisma expects the mortgage market to grow at an average annual rate of around 2% through 2028;

— the total mortgage market could approach €53 billion, which would be comparable to 2021–2022 levels.

📉 Lower borrowing costs played an important role in this shift. After interest rates peaked, buyers became more cautious, especially in the new-build segment and among families purchasing primary homes. However, the gradual easing of credit conditions has brought part of the demand back to the market. This is particularly important for Italy, where a significant share of transactions in the mass market depends on mortgage affordability.

🏘️ At the same time, price growth remains moderate. In 2025, homes in excellent condition increased in price by 1.3%, while properties in good condition rose by 1.9%. For 2026, growth is expected to slow further to around 1.0% per year in the country’s largest cities.

🏗️ The renovation segment is also attracting particular interest. The report notes that this category is seeing stronger demand pressure. This may indicate that some buyers are looking for a more accessible entry point into the market and are willing to consider properties with potential for future upgrades.

💼 International demand continues to play an important role in the premium segment. According to Engel & Völkers, foreign buyers account for an average of around 35% of clients in the luxury residential market. However, the structure of demand varies by region: European buyers are particularly active in Alpine and lake destinations, Campania and Sicily show a noticeable share of buyers from North America, while the lakes of Lombardy and Lake Maggiore consistently attract buyers from Germany and Switzerland.

📣 On Realting, you can explore property listings across different regions of Italy and find homes for living, holidays, rental income, or long-term investment.