House prices and inflation are a hot topic in Italy in 2023. Despite a slight slowdown, the inflation rate in Italy is still high according to the latest ISTAT survey for February 2023. The consumer price index, in fact, shows a year-on-year increase of 9.1 per cent. In some Italian cities, however, this figure is even exceeded by the increase in rent. Let's find out in which Italian cities property asking prices have grown by more than 9.1% compared to 12 months ago, in other words, where in Italy house prices are rising more than inflation.
Milan and Rome, two of the main national markets, remain off the list of cities where values outpace inflation and do not even enter the top 10 of the cities with the highest increases over the last 12 months. A fact that could be an indication of how values are already at the limit of affordability for many citizens living there. Let's find out the situation in detail.
According to idealista's house price index, the average price of homes for sale in Italy has risen slightly on a quarterly basis by 1.8% compared to 12 months ago, stabilising at 1,847 euros/m2. But the situation varies, even by a lot, depending on the city. So much so that, as already mentioned, as many as 4 cities recorded increases equal to or greater than the inflation rate recorded by ISTAT in February 2023 (9.1%).
In particular, as far as regional capitals are concerned, the podium of cities with the largest increases is formed by Monza (15.5%), Treviso (11.8%) and Bolzano (11.8%). Just outside the top 3 is Ferrara, where the average demand from renters has risen by 9.1% in the last year. Cesena follows, with a leap of 8.8%.
The top 10 Italian cities where average prices increased the most on an annual basis in February 2023 is completed by Imperia (+8.4%), Gorizia (+8.1%), Reggio Emilia (+7.6%), Naples (+7.6%) and Lecco (+7.6%).
Milan (7%) and Rome (just 0.5%) are also growing significantly, but still below the threshold of the inflation index. There are several cities in negative territory. The most negative performances are those recorded by Pavia, Foggia (both -4%), Isernia (-4.9%), Enna (-5.9%), Andria and Asti (both -6.3%).
By absolute values, however, the cities with the highest average sales prices are: Milan (4989.21 euros/m2), Bolzano (4517.99 euros/m2), Venice (4437.52 euros/m2), Florence (3922.84 euros/m2), Bologna (3398.03 euros/m2) and Rome (3008.84 euros/m2).