The Italian housing market growth in major cities is experiencing a significant resurgence, largely propelled by the robust engagement of under-35s in the mortgage sector. Data released by the National Council of Notaries, based on 2025 Notarial Statistics, reveals a nationwide increase in house sales by 6.6%, a substantial 18.8% rise in the number of mortgages, and an impressive 30.4% surge in total capital disbursed. This momentum pushed total property transactions beyond €145 billion, marking a 4.3% increase from 2024 figures.
Impact Analysis
This widespread recovery, particularly evident across Italy’s major urban centers like Milan, Rome, and Naples, signals a crucial shift in the nation’s real estate landscape. The market’s buoyancy is primarily fueled by private sales of first homes, with younger demographics playing a pivotal role. The under-35s consistently emerge as the largest group among both first-time buyers leveraging tax schemes and those securing mortgages, underscoring their critical influence on the current market trajectory. This demographic’s strong participation suggests a renewed confidence in long-term property investment and homeownership among younger generations, potentially driven by more favorable lending conditions.
While private transactions flourish, the new-build sector, particularly purchases directly from developers, continues to face headwinds. This dichotomy highlights a preference for existing properties, possibly due to pricing, immediate availability, or location advantages within established urban areas. Furthermore, the rise in second home purchases, especially in tourist and student-heavy cities, points to property as a strategic asset for wealth preservation and capitalizing on the burgeoning rental and short-let markets. The mortgage sector’s strong recovery, characterized by increased loan numbers and capital disbursed, including a notable uptick in mid-to-high-end mortgages and subrogation transactions, reflects a more dynamic credit environment and improving household purchasing power.
City-by-City Overview: Under-35s Drive Mortgages
In Milan, Monza, and Brianza, residential property sales increased by 5.63%, with private first-home sales climbing nearly 10%. Crucially, 36.98% of first-home buyers were aged 18-35. The mortgage sector here saw a 17.20% increase in deeds, with total capital reaching €15.2 billion, and the average loan value rising significantly. Notably, under-35s constituted 43.32% of all borrowers, showing a 19.26% rise. Turin mirrored this trend with an 8.88% overall increase in sales, primarily from private transactions, and under-35s accounting for 35.57% of first-home subsidy beneficiaries. Mortgage deeds in Turin surged by 20.04%, with €2.7 billion in capital disbursed.
Verona experienced a 1.82% sales increase, with over 34% of first-home buyers under 35. Mortgage loans grew by 18.09%. Bologna saw a 6.42% rise in sales, driven by private transactions, and 37.16% of first-time buyers were under 35. Mortgages in Bologna jumped 18.61%, with capital exceeding €2 billion. Florence recorded modest 1.16% sales growth, with under-35s making up 34.61% of first-home subsidy recipients and 38.42% of borrowers. Related real estate articles indicate that this trend of youth-driven growth is becoming more common across European urban centers.
Rome’s property sales increased by 7.80%, with private transactions leading the way. Here, 33.67% of first-home buyers were under 35, and under-35s comprised 36.64% of mortgage borrowers, a 24.69% increase. The capital disbursed in Rome’s mortgage market surpassed €7.6 billion. Naples demonstrated strong growth with a 6.93% increase in property sales, predominantly from private individuals, and over 39% of first-time homebuyers were under 35. The city’s mortgage sector expanded by 21.38%, with capital disbursed reaching €1.6 billion. This consistent pattern across major Italian cities highlights the generational shift in property acquisition.
“The data unequivocally demonstrates that the under-35 demographic is not just participating, but actively driving the current resurgence in the Italian housing market, particularly through their engagement with mortgage financing for first homes.”
The resilience of second homes in cities popular with tourists and students, such as Milan and Verona, also underscores a strategic investment approach. These properties serve as both a means of safeguarding assets and generating income through rental and short-let markets, reflecting a diversified investment strategy in a recovering economy.
What’s Next
The sustained momentum, particularly the strong performance of under-35s in the mortgage market, suggests a period of continued growth for Italian urban real estate. Future implications include potential shifts in urban development to cater to younger buyers’ preferences and continued innovation in mortgage products. As interest rates evolve and economic stability solidifies, the influence of this demographic on housing policy and market trends is expected to deepen. Analysts will be watching closely to see if the new-build sector can adapt to attract these buyers or if the preference for existing properties will persist.
Key Takeaway
The current landscape paints a clear picture: Italy’s major cities are experiencing a robust housing market recovery, with Italian housing market growth significantly propelled by the active participation of under-35s in securing mortgages. This demographic’s influence is not merely a trend but a foundational pillar of the market’s current expansion, signaling a generational shift in homeownership and investment strategies.
