Milan is Italy's most expensive city in real estate, Brescia is a more affordable province.

In Lombardy, home prices continue to rise in a market that doesn't seem afraid of a slowdown. In 2023, the values of real estate transactions in Lombardy increased significantly by 7% year on year, bringing the average price to 2174 euros per square meter. In the fourth quarter, according to the Idealista portal, an upward trend was recorded with a growth of 4.3%.

AndMilan remains the leading player: although it has lost the speed of price growth, it remains the most expensive province in Italy.

The real estate market in the provinces

The positive trend affects all the provinces except Pavia, where a slight decrease of 0.4% was recorded. The leading province is Brescia, with 7% growth at the regional level, followed byMilan (6%) and Bergamo (5.7%). Increases in other provincial centers range from 5% in Mantua to 0.8% in Lecco.

When it comes to prices per square meter, Milan (3393 euro/m2) tops the ranking, ahead of Brescia (2218 euro/m2), both provincial areas have values above the regional average of 2174 euro. The remaining areas have prices ranging from 2139 euros per square meter in Como to 1076 euros in Pavia, the most economical province of Lombardy.

The real estate market in provincial capitals

Analyzing the details by city, the leader is Bergamo (9.4%), followed by Mantua (7.6%) with an outstanding growth. The cities of Cremona (6.2%), Brescia (4.7%), Monza (4.7%), Varese (2.9%) andMilan (1.7%) show above-average growth. At the same time, there are declines in Lecco (-0.2%), Lodi (-1.8%), Como (-1.7%) and Pavia (-2.2%).

When it comes to prices, Milan (4985 euro/m2) reaches an all-time high since 2012, followed by Monza (2779 euro/m2) and Bergamo (2434 euro/m2). Como (2223 euro/m2) and Pavia (2206 euro/m2) also have prices above the regional average. On the other hand, the most affordable cities to buy a house in Lombardy are Mantua (1,485 euro/m2) and Cremona (1,288 euro/m2).

Vincenzo De Tommaso, head of research at Idealista, explains, "The real estate market in 2023 has been significantly affected by the 'perfect storm' represented by the rise in mortgage rates and the constant shortage of real estate. This has made buying homes unaffordable for many people, especially first-time buyers, leading to a slowdown in demand after two years of activity, possibly driven by a forecast of rising interest rates and forced rent increases. "

National index shows a rising trend with positive results in major markets. Prices of existing homes in Italy rose 1.7% over the past year, setting the price per square meter at 1,840 euros, according to the latest price index from Idealista. Looking at the quarterly variation, prices are up 1.6% since the summer.