The House Price Index (HPI) measures the evolution of market prices of all residential properties that are purchased by households (flats, detached houses, terraced houses, etc.), both new and existing, independently if bought for own-occupancy or as an investment.
According to preliminary estimates, in the fourth quarter of 2020 the HPI (see Italian IPAB) increased by 0.3% compared with the previous quarter and by 1.6% compared with the same quarter of the previous year (it was +1.0% in the third quarter).
The increase on annual basis of HPI was due both to the prices of new dwellings, which grew by 1.7%, slowing compared to the previous quarter (it was +3.0%) and to the prices of existing dwellings which increased by 1.4%, accelerating compared to the third quarter (it was +0.7%).
The increase of HPI occured in a context of accelerated growth in sales volumes (it was +8.8% the annual rate of change registered for the residential sector in the fourth quarter of 2020 by the Observatory of Real Estate Market belonging to Tax Office, from +3.0% of the previuos quarter).
The increase on quarterly basis in the HPI was only due to the prices of existing dwellings (+0.3%), while prices for new dwellings decreased (-0.3%).
At territorial level, in the fourth quarter 2020, the growth in house prices on annual basis was driven by South/Islands (+3.0%); prices increased, but less markedly, in the North-West and in the North-East (respectively +1.7% and +1.8%) and slightly in the Center (+0.2%).