Mortgage interest rates in Italy decreased substantially between 2013 and 2021 before rising in the following years. As of the fourth quarter of 2024, the mortgage interest rates amounted to **** percent — lower than the rate in the same period in the previous year. A slowly recovering market Despite not reaching the pre-crisis levels, an increase in the number of transactions in the residential real estate market as well as the volume of mortgages stipulated for house purchase indicate a positive trend for the sector in Italy. Homeownership in Italy reached **** percent in 2021, one of the highest rates in Western Europe. Low interest rates, especially when compared to other European countries, and decreasing house prices led to a renewed interest in the real estate market in Italy. Milan, an attractive destination for investments In recent years, more than in the past, thanks to its role as a capital of business and finance as well as an innovation hub, Milan was able to attract human capital and investments, both domestic and foreign. This ability to grow and innovate was also reflected in the real estate market, which was the most dynamic in the country. Transactions in residential real estate in Milan increased steadily since 2012, except for 2020, and so did prices: some areas of the city are among the most expensive in the country to buy a property.

The mortgage interest rate for mortgages with initial fixed period rates up to one year in Italy decreased overall between 2011 and 2021, followed by a spike in 2022. In the fourth quarter of 2024, the rate stood at **** percent, down from **** percent from the previous year, when rates peaked. In the same period, the gross residential mortgage lending in Italy fluctuated.

Mortgage credit interest rate, percent in Italy, March, 2025 The most recent value is 2.79 percent as of March 2025, a decline compared to the previous value of 2.82 percent. Historically, the average for Italy from January 1995 to March 2025 is 4.63 percent. The minimum of 1.59 percent was recorded in December 2021, while the maximum of 12.52 percent was reached in October 1995. | TheGlobalEconomy.com

The mortgage interest rate for all maturities beyond ten years of the initial fixed period in Italy decreased overall between 2016 and 2021, followed by an increase in 2022. As of the second quarter of 2024, the average mortgage rate was 3.44 percent. As of December 2019, interest rates were the highest in Sardinia and the lowest in Lombardy.

The annual average interest rate on new residential loans in Italy rose to 4.42 in 2023 - the highest rate recorded since 2009. In contrast, the lowest interest rate was observed in 2020, when it stood at 1.25 percent.

This statistic presents the interest rate on home mortgage loans to households in Italy as of December 31, 2019, by region. According to the data, the interest rate on home mortgage loans to households in Italy ranged from 1.71 percent to 2.04 percent according to region. The regions with the highest interest rate were Sardinia (2.04 percent), Abruzzo and Molise (2 percent), while Lombardy had the lowest value with 1.71 percent.

The Italian mortgage market has grown substantially since 2010, with the value of mortgages outstanding reaching to *** billion euros in 2024. In the period between 2020 and 2022, growth was stronger, fueled by low-interest rates. As the lending environment tightened, the market plateaued. Mortgage interest rates in Italy The mortgage interest rates in Italy decreased significantly, falling to record lows, before rising dramatically in 2022. The period of decline in mortgage interest rates probably helped revive the residential real estate market in the country, which suffered after the financial crisis of 2008. In fact, the number of transactions in the sector increased steadily since 2013. A regional overview In some areas of the country, the residential real estate market appears to be more dynamic than in others. In fact, in 2022, the North-West of Italy accounted for more than one third of all transactions in the sector. When looking closely at the single regions, Lombardy was the most active, with more than ******* transactions registered. The second most prolific market was found in the region of Lazio, which recorded approximately ** thousand transactions.

Key information about Italy Bank Lending Rate

• Italy Bank Lending Rate was reported at 4.400 % pa in Dec 2024.
• This records a decrease from the previous number of 4.527 % pa for Nov 2024.
• Italy Bank Lending Rate data is updated monthly, averaging 3.557 % pa from Jan 1995 to Dec 2024, with 360 observations.
• The data reached an all-time high of 11.264 % pa in Aug 1995 and a record low of 1.049 % pa in Jul 2021.
• Italy Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Monthly.

The preferred mortgage loans in Italy have for a long time been those with medium-term fixed rates, but in 2022, the share of variable rate loans increased. Variable rate loans rose from ** percent at the beginning of the year to ** percent in the third quarter of 2022. This had to do with the rising rates of fixed rate mortgages during the same year. In 2024, this trend reversed, and medium-term fixed rate stood at nearly ** percent in the second quarter of the year.

Italy - Housing cost overburden rate: Owner, with mortgage or loan was 1.70% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on June of 2025. Historically, Italy - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 8.20% in December of 2009 and a record low of 1.60% in December of 2023.

Italy - Overcrowding rate: Owner, with mortgage or loan was 27.10% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Overcrowding rate: Owner, with mortgage or loan - last updated from the EUROSTAT on June of 2025. Historically, Italy - Overcrowding rate: Owner, with mortgage or loan reached a record high of 31.50% in December of 2018 and a record low of 24.30% in December of 2011.

Italy - Severe housing deprivation rate: Owner, with mortgage or loan was 5.50% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on July of 2025. Historically, Italy - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 9.70% in December of 2015 and a record low of 5.00% in December of 2008.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, ranging from rising interest rates, spiralling inflation and muted economic growth. Typically, estate agents can earn income via fees and commissions charged to clients, which allows them to protect their operating profit margin from property price fluctuations. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated rise of 1.2% in 2025 to €207.6billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing in the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated, being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this have started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, Proptech, which has been heavily invested in, will force estate agents to adapt, shaking up the traditional real estate industry. A notable application of Proptech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

The highest interest rate for mortgage-secured loans in Italy in 2023 was registered in Southern Italy. In comparison, in the North-East of Italy, the average interest rate of mortgage-backed loans for house purchases was lower at 4.08 percent, making it the cheapest region to take out a mortgage loan. The interest rate is fixed on the date of signing of the deed of financing, as declared in the mortgage registrations, and applied for the first installment of the loan.

Mortgage interest rates worldwide varied greatly in 2024, from less than **** percent in many European countries, to as high as ** percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increase in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2023, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

Mortgage credit interest rate, percent in Italie, mars, 2025 Pour cet indicateur, Bank of Italy fournit des données pour la Italie de janvier 1995 à mars 2025. La valeur moyenne pour Italie pendant cette période était de 4.63 pour cent avec un minimum de 1.59 pour cent en décembre 2021 et un maximum de 12.52 pour cent en octobre 1995. | TheGlobalEconomy.com

The Italian real estate market, valued at approximately €XX million in 2025, exhibits robust growth potential, driven by a compound annual growth rate (CAGR) exceeding 5% through 2033. This expansion is fueled by several key factors. Increased tourism and a growing luxury market, particularly in renowned cities like Rome, Florence, and Venice, significantly contribute to demand. Furthermore, a rising influx of foreign investors seeking high-quality properties and the increasing popularity of Italian lifestyle contribute to the market's dynamism. The market is segmented into villas and landed houses, apartments and condominiums, further differentiated geographically across major Italian cities and other regions. While the luxury segment commands significant attention, the broader market reflects diverse needs and price points, catering to both domestic and international buyers. Potential constraints to growth include economic uncertainties and fluctuating government regulations influencing property investment. However, the overall outlook remains positive, projecting sustained growth driven by the enduring appeal of Italian real estate and increasing global interest. The major players in the Italian real estate market, including Christie's International Real Estate, Sotheby's International Realty, and numerous local agencies, are well-positioned to capitalize on this expansion. The regional distribution of investment reflects global interest, with North America, Europe, and the Asia-Pacific region showing significant participation. Future growth is anticipated to be influenced by broader economic conditions, shifts in investor sentiment, and infrastructural developments. Continuous monitoring of these factors will be crucial for accurate market forecasting. Maintaining a competitive landscape, along with innovative marketing strategies and property management solutions, will likely determine success within this dynamic sector. The overall market shows considerable resilience and potential for substantial expansion over the next decade. Recent developments include: June 2022: The multinational real estate company Hines and Blue Noble, co-investors in the "Future Living" fund run by Savills Investment Administration SGR SpA, confirmed that a leasing deal with Starhotels for the management of a portion of the Corso Italia asset in the center of Florence has been finalized. As part of the new residential rental offer at Il Teatro Luxury Apartments - Starhotels Collezione, more than 150 luxury apartments of different sizes and styles will be available for stays of a few weeks to a few months.So, Corso Italia will start up again, keeping the area's cultural history while offering cutting-edge, in-demand apartments for rent., March 2022: Christie's International Real Estate announced their acquisition of Ansley Real Estate, a leading Atlanta-area luxury brokerage firm. After the acquisition, the company became known as Ansley Christie's International Real Estate. This acquisition will reinforce the brokerage's leadership in Atlanta's luxury market.. Notable trends are: Increase in Residential Properties across the Italy due to Less Mortgage Rates.

The Italian real estate market, valued at approximately €XX million in 2025, exhibits robust growth potential, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% through 2033. This expansion is driven by several key factors. Firstly, a resurgence in tourism and a growing influx of foreign investors, particularly from North America and other European countries, are significantly boosting demand. Secondly, Italy's appealing lifestyle, rich history, and cultural heritage continue to attract buyers seeking both primary residences and vacation homes. The market is segmented by property type (villas and landed houses, apartments and condominiums) and by city (Rome, Venice, Milan, Naples, Florence, and other cities). Rome, Milan and Venice consistently command premium pricing reflecting their high desirability. The luxury segment, catered to by firms like Christie's International Real Estate and Sotheby's International Realty, is experiencing particularly strong growth. While challenges such as bureaucratic complexities and fluctuating economic conditions exist, the long-term outlook for the Italian real estate market remains positive, fueled by sustained demand and strategic investments in infrastructure and tourism. Despite these positive trends, the market faces some headwinds. Rising interest rates and inflation pose a risk to affordability, potentially dampening demand in certain segments. Furthermore, regulatory hurdles and lengthy bureaucratic processes can create delays and complexities for both buyers and developers. However, the inherent attractiveness of Italian real estate, coupled with ongoing government initiatives to streamline processes and boost investment, is expected to mitigate these challenges and sustain the market's overall upward trajectory. The continued strength of the luxury segment indicates a resilience to broader economic fluctuations, suggesting the market’s underlying strength and future potential for growth. Regional variations exist, with Northern Italy generally commanding higher prices than the South, reflecting variations in economic activity and property desirability. Recent developments include: June 2022: The multinational real estate company Hines and Blue Noble, co-investors in the "Future Living" fund run by Savills Investment Administration SGR SpA, confirmed that a leasing deal with Starhotels for the management of a portion of the Corso Italia asset in the center of Florence has been finalized. As part of the new residential rental offer at Il Teatro Luxury Apartments - Starhotels Collezione, more than 150 luxury apartments of different sizes and styles will be available for stays of a few weeks to a few months.So, Corso Italia will start up again, keeping the area's cultural history while offering cutting-edge, in-demand apartments for rent., March 2022: Christie's International Real Estate announced their acquisition of Ansley Real Estate, a leading Atlanta-area luxury brokerage firm. After the acquisition, the company became known as Ansley Christie's International Real Estate. This acquisition will reinforce the brokerage's leadership in Atlanta's luxury market.. Key drivers for this market are: Rapid urbanization, Government initiatives. Potential restraints include: High property prices, Regulatory challenges. Notable trends are: Increase in Residential Properties across the Italy due to Less Mortgage Rates.

The Italian mortgage market has grown substantially since 2014, with the value of mortgages outstanding increasing by about 62 billion euros until 2024. In the first quarter of 2014, the value of mortgages outstanding amounted to 359 billion euros and in the second quarter of 2024, it exceeded 421 billion euros. Mortgage interest rates in Italy The mortgage interest rates in Italy decreased significantly, falling to record lows, before rising dramatically in 2022. The period of decline in mortgage interest rates probably helped revive the residential real estate market in the country, which suffered after the financial crisis of 2008. In fact, the number of transactions in the sector increased steadily since 2013. A regional overview In some areas of the country, the residential real estate market appears to be more dynamic than in others. In fact, in 2022, the North-West of Italy accounted for more than one third of all transactions in the sector. When looking closely at the single regions, Lombardy was the most active, with more than 165,000 transactions registered. The second most prolific market was found in the region of Lazio, which recorded approximately 77 thousand transactions.