House prices (provisional) - Q1 2022

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 second quarter of 2022 the HPI (see Italian IPAB) increased by 2.3% compared with the previous quarter and by 5.2% compared with the same quarter of the previous year (it was +4.5% in the first quarter 2022).

The increase on annual basis of HPI was mainly due to the prices of new dwellings that rose by 12.1% (a speed-up compared to +5.0% registered in the previous quarter); those of existing dwellings also increased (+3.8%, it was +4.4% in the first quarter).

The increase of HPI occured in the context of a clear and persistent growth in sales volumes (it was +8.6% the annual rate of change registered for the residential sector in the second quarter of 2022 by the Observatory of Real Estate Market belonging to Tax Office, from +12.0% of the previous quarter).

Also the increase on quarterly basis of the HPI was due to both the prices of new dwellings, that rose by 6.8%, and those of existing dwellings which increased by 1.4%.

In the second quarter of 2022, HPI increased on quarterly basis and on annual basis in all the geographical areas. In Milan the house price index increased on an annual basis by 8.3% (up from +6.4% in the previous quarter), with a clear trend reversal for the new dwellings (from -2.4% to +16.9%). Also in Rome and Turin the index grew on an annual basis (+4.8% and +1.0% respectively).