'Italy, real estate: heavy fall due to mortgage rates'

The number of real estate transactions in Italy has declined, especially in provincial capitals. A 10% decline is expected in 2023.

The most affected metropolitan cities are Bologna (-24% of transactions) and Milan (-23%).

The Italian real estate market is in deep crisis due to expensive mortgages. According to a study by the National Notary Council, in the first half of 2023, the number of transactions for the purchase of primary homes fell by 8.7% compared to the same period last year.

If this trend continues, notaries estimate that by the end of the year the decline will amount to 10.5%. Bologna and Milan are suffering the most. The strongest decline is seen in the capital's''cities compared to other cities.

On a territorial basis, the Northwest region shows the largest decrease (approximately -12%), while the only positive growth related to non-metropolitan cities is in the islands (+2%).

The most affected metropolitan cities are Bologna (-24% of transactions) and Milan (-23%).

The negative trend is also seen in other metro regions such as Rome (-10%), Florence (-9%), Turin and Naples (both -7%).