Italy sees decline in residential property prices while EU markets rise

In the first quarter of 2025, data released by Eurostat indicated that residential property prices in the European Union continued to rise. This growth was measured at an increase of 5.7 percent compared to the same period in 2024, alongside a rental price increase of 3.2 percent. A closer examination of the figures showed a modest rise of 1.4 percent in house prices and 0.9 percent in rents compared to the last quarter of 2024, illustrating a continued, stable growth trend of the real estate market in the EU. From 2010 to 2025, the overall trend in residential property prices across the EU was significant, with an average increase of 57.9 percent. Rents also experienced substantial growth, rising by a total of 27.8 percent during the same timeframe. However, the nature of the growth in these two sectors was fundamentally different. Rents have followed a trajectory of gradual and stable increases, while property prices have undergone more pronounced fluctuations—initially surging sharply between 2015 and 2022, encountering a stagnation period, and then resuming an upward trend starting in 2024. The most notable increases in property prices from 2010 to 2025 were registered in Hungary and Estonia, where prices surged by 260 percent and 238 percent respectively. A total of nine member states experienced their residential property prices more than doubling in this period, showcasing extreme growth across various markets. Countries like Lithuania, Latvia, the Czech Republic, Portugal, Bulgaria, Austria, Luxembourg, Poland, and Slovakia all saw considerable increases. Contrarily, Italy serves as a unique case where residential property prices actually fell over the same period, recording a decline of four percent. When examining rental prices, the highest increases occurred in Estonia at 220 percent, followed by Lithuania at 184 percent, Hungary at 124 percent, and Ireland at 115 percent. Interestingly, Greece emerged as the only member state experiencing declines in rental prices since 2010, with an overall drop of 11 percent. This stark contrast in growth patterns across the EU highlights the complexities of the real estate market, influenced by various economic conditions, local policies, and market demands, revealing both opportunities and challenges for investors and residents alike.