House prices in Italy rose by 4.1% in the fourth quarter of last year, compared to the same period a year earlier, marking a slight acceleration from the 3.7% growth recorded in Q3 2025, new data from Istat has revealed.
Istat’s House Price Index (HPI), which tracks market prices for all types of residential properties purchased by households – including flats, detached houses, and terraced homes – rose 0.9% compared with the previous quarter.
The increase over the year was primarily driven by existing dwellings, whose prices climbed 5.2%, up from 4.2% in the previous quarter. Conversely, prices for new dwellings showed signs of market softening, declining 1.2%, compared with a 1.3% rise in the third quarter of 2025.
On a quarterly basis, the overall HPI growth of +0.9% was supported by increases in both new and existing properties, with prices for new dwellings rising 1.3% and existing dwellings increasing 0.8%.
Number of property transactions
However, the number of residential property transactions grew at a significantly slower pace, Istat added. Data from the Observatory of the Real Estate Market of the Tax Office shows that the annual rate of change in residential sales fell to +0.4% in Q4 2025, down sharply from +8.5% in Q3 2025.
Looking at the full year, Italian house prices rose 4.0% on average in 2025, with existing dwellings up 4.7% and new dwellings up 0.6%, Istat noted.
Separate recent data from Istat indicated that Italy’s labour market remained broadly stable in Q4 2025, with employment showing modest growth and unemployment continuing to decline. Total employment reached 24.1 million, up 37,000 from the previous quarter.
