The 2023 of residential real estate market recorded greater dynamism compared to 2022, at least in the first half of the year. This is highlighted by RE/MAX Italia Study Center in the Real Estate Data Hub, however noticing a slight trend reversal in the third quarter of 2023, in line with historical seasonality. However, 2023 shows lower values than 2022 in all quarters, due to demand contracting by 15% compared to the previous year. The supply increases negligibly (+0.97%).
Residential real estate transactions in 2023
The year-on-year growth of transacted properties, according to Re/Max, it is still in line with the long-term trend, which sees a progressive increase in demand. The slowdown in 2020 was offset in 2021, leading to a consolidation in 2022. 2023 continues the trend, highlighting a decrease in demand in the medium term.
Given the economic context, greater volatility of oscillations around the long-term trend is observed. The analysis of the properties transacted confirms the buyers’ preference towards i three-room apartments (40.32% of the total). Followed by two-room apartments (22.90%) ei four-room apartments (18.81%). There was also an increase in properties transacted with five or more rooms compared to the previous year. Studio apartments are stable, representing approximately 3% of the total.
Residential sales region by region
The regions that drive the residential real estate market are confirmed to be the Lombardia in the North, followed by Veneto and Piedmont; The Lazio in the Centre, together with Emilia-Romagna and Tuscany; there Puglia in the South, with Campania. In the Islands the greatest number of properties transacted is recorded in Sicily. Comparing the first three quarters of 2023 with the same period of 2022, we note a decline in demand spread across the entire Peninsula.
Considering the period from January to September and analyzing the properties sold by geographical area, we observe that the slowdown in demand in 2023 it is more pronounced in the South. It is followed by the North, which, after recording strong growth in 2022, realigns itself on the values of 2021. The Center is more stable.
The most purchased houses in Italy
In all the geographical areas examined, buyers’ preference is oriented towards three-room apartment. It is the North that records the highest number of three-room apartments transacted, which represent 44% of the total. The two-room apartment follows with 27%. The three-room apartments sold in the Center represent 38% of the total, while in the South 33%. In the South and Islands, demand is greater for properties with larger sizes, a phenomenon correlated to the lower price per square meter compared to other areas. In the South, properties with 4 rooms or more represent more than half of the properties transacted, in the Center almost 40%, while in the North they are a quarter of the total.
House sales times in Italy
According to the Re/Max Italia Study Center market days for sales appear to be in a continuous reduction trend. In the third quarter of 2023 it takes on average about 6.5 months to close a transaction. Year on year, a continuous contraction is observed, on average equal to approximately one week. For rentals, the trend is similar. We note a reduction in days on market equal to almost a month in the third quarter of 2023 (107 days) compared to the fourth quarter of 2022 (138 days needed).
L’increase in property prices it has made the rental market more dynamic, especially in large urban centres. It takes just over three months to complete a transaction. Analyzing the market days at the level of the three areas (North, Centre, South and Islands), a similar underlying trend can be seen, with shorter times in the North and longer in the South. The difference in time between these two areas is more than a month, thanks to a more dynamic real estate market in the North. Starting from the first quarter of 2023, in the North there is a stable trend with a slight improvement, equal to one week. In the Center and the South, however, the times are extended by about a month.
Rental and sales prices in Italy
The long-term real estate price trends confirms a growth trend. In the medium term, at a national level, there is a slight slowdown in average prices per square meter, which began in the third quarter of 2021. Despite this consolidation in the medium term, the first quarter of 2023 records prices per square meter higher by 2.40% compared to to the first quarter of 2022 and by 1.10% compared to the first quarter of 2021.
It decreases second quarter 2023, which observes a -1.08% compared to the average prices of 2022 and a +3.45% compared to the same period of 2021. The trend continues in the third quarter, which marks a -7.09% compared to the previous year . Please note that 2022 recorded a significant growth in prices, while the comparison with 2021 shows a more contained decrease, equal to -1.89%.