ITALY Trends and Developments Contributed by: Gabriele Capecchi, Giovanni Manno and Giuliana Serra, Legance
Legance – Avvocati Associati Via Broletto 20 20121 Milan Italy Tel: +39 02 89 63 071 Fax: +39 02 896 307 810 Email: gcapecchi@legance.it Web: www.legance.com
Introduction to the Italian Real Estate Market The Italian real estate market is traditionally one of the most significant sectors of the Country’s economy. With its combination of historical architectural heritage, modern urban spaces, and a lifestyle deeply rooted in property owner - ship, the real estate market plays a crucial role in shaping both the economy and the cultural landscape of Italy. Despite the economic recession experienced in the last few years, primarily caused by the global challenges brought by world-scale conflicts, the Italian real estate market has shown remarkable resilience. It is now beginning to recover gradu - ally, moving toward stable growth. The year 2024, and particularly the second half of it, marked a crucial period of recovery in Ita - ly for both the residential and commercial real estate markets, which had been impacted by global inflation, rising construction costs, and changing lifestyle preferences. As the market enters 2025, demand for housing continues to outpace supply, pushing prices upward. This allows experts to maintain a positive outlook for real estate investments, expecting this upward trend to persist throughout the current year.
Macroeconomic Overview and Impact on Italian Real Estate According to the latest reports, although infla - tion is slightly declining, it still represents a challenge for the Italian government, especially with respect to the housing market. However, the beginning of 2025 has witnessed continu - ous widespread growth across all areas of the Italian real estate market, mainly thanks to the European Central Bank’s decision to gradually reduce interest rates. Such a recent measure is making it progressively easier for national and international investors to access mortgages, thus leading to an expected rise in demand for housing in Italy. Actually, the European Central Bank’s willingness to gradually reduce interest rates as a means to fight both inflation and the tariffs threatened by the new U.S. president – already expressed dur - ing the second half of the year 2024 – has also been confirmed for 2025. Indeed, by means of a decision adopted on 30 January 2025, the Euro - pean Central Bank ordered a lowering of: • the deposit rate; • the main refinancing rate; and • the marginal lending rate.
523 CHAMBERS.COM
Powered by FlippingBook