House prices (provisional) - Q1 2025

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 first quarter of 2025 the HPI (see Italian IPAB) decreased by 0.2% compared with the previous quarter and increased by 4.4% compared with the same quarter of the previous year.

The increase on annual basis of HPI was mainly due to the prices of existing dwellings, which rose by 4.9% (accelerating from +3.4% in the previous quarter) and, to a lesser extent, to the prices of new dwellings which increased by 1.5%, reflecting a sharp decline compared to the 9.2% in the fourth quarter of 2024.

These trends of HPI occurred in a context of an increase in sales volumes (according to the Observatory of Real Estate Market belonging to Tax Office, the corresponding annual rate of change for the residential sector was +11.2% in the first quarter of 2025, up from +7.6% in the previous quarter).

On quarterly basis, the slight decrease of the HPI was only due to the prices of new dwellings, that fell by 8.7% while those of existing dwellings rose by 1.7%.

Together with the release of HPI for the first quarter of 2025, the updated weights used to compile the indices are also disseminated. In particular, in 2025, the weight of new dwellings amounts to 17.60% (it was 17.36% in 2024) against 82.40% of the existing ones (it was 82.64% last year).