Real estate market: prices in southern cities are rising as fast as in Milan.

September 06, 2023 - 06:30 10 photo ©Ansa

Milan confirms its position as the most expensive city in Italy, whileRome is down 0.2% from a year ago.

The main cities of Southern Italy show significant price increases, sometimes even exceeding those ofMilan, reports Immobiliare.it Insights, having analyzed the residential real estate market in Naples, Bari and Palermo. To buy an apartment, Milan remains the most expensive city in Italy with a cost of 5.271 euros per square meter, up 3.3% compared to twelve months ago, while Rome decreased by 0.2% compared to a year ago, stopping at 3.336 euros per square meter. Looking towards the two main Italian cities, it can be seen that the major cities of Southern Italy are showing significant price increases, competitive or even exceeding those of Milan. The real estate market is growing by 2.5% compared to the beginning of 2023. Milan is the most expensive city.

The Immobiliare.it Insights report, specialized in market analysis of the leading Italian real estate portal Immobiliare.it, has prepared a monthly observation of the residential market, focusing on the largest cities in Southern Italy: Naples, Bari and Palermo. Mortgage, house price falls over 10 years in seven of the ten cities. The situation in Bari and Palermo. Bari has a larger price increase than Naples over the last 12 months, reaching 4.4%. Pulghese continues its journey towards an average price of 2,000 euros per square meter, stopping today at 1,967 euros per square meter. Among the three cities surveyed, the cheapest is Palermo with a price of 1360 euros per square meter, but it also has the most significant price increase: +5.3% in the last twelve months. Real estate for sale in Italy, here are the best areas to buy. Slowdown - All three cities examined have seen a slowdown in price increases compared to July; although not decreasing, they are increasing at a slower rate than half a percent. This trend is also confirmed in the country's major cities, with Rome and Milan remaining at stable prices in August. Luxury real estate in Italy - demand is growing, sales are faster.

House prices by neighborhood in Naples. In Naples, the three most expensive neighborhoods are located above the mark of 4000 euros per square meter. They are Posillipo, Marechiaro with an average price of €4,900 per square meter, Chiaiaia, Mergellina (€4,300/square meter) and Vomero, Arenella (€4,195/square meter). While the first two have seen gains of around a percent over the past year, Vomero, Arenella has risen by 3% in the same period.

Property prices by neighborhood in Bari. Plus signs prevail on an annual basis, with the exception of San Paolo, Stanica, the cheapest quarter of the city, which approaches the 1,500 euros per square meter mark; this area shows a decrease of 7.2% compared to twelve months ago. The most expensive neighborhood is Borgo Antico, Murat, Madonnella with an average cost of 2378 euros per square meter. The most significant increase in pulghese will go to San Girolamo, with an increase of 10.5%. Watch video: Apartments for sale in the South, prices rise at the level of Milan.

Property prices by neighborhood in Palermo. In Palermo, no quarter exceeds the mark of 2000 euros per square meter: the most expensive is Liberta, Villabianca, De Gasperi, closing at 1995 euros per square meter (+2.7% in the last year). The area that is growing the fastest is the historic center, where prices have increased by almost 10% in the last 12 months. Rental Trends - In Naples, the average rental price of an apartment is 13 euros per square meter (+7% annualized). The supply of properties for rent is declining more sharply compared to stock for sale: -41.6% over the last year. Bari is the city that showed the highest growth of the group on an annual basis, amounting to +13.8%, with an average rental rate per square meter of 10.7 euros. Palermo confirms its position as the most economical of the three cities also in terms of rental rates, with an average of 8.2 euros per square meter, although it has grown by 9.4% over the last year.

Rent by neighborhood - The most expensive neighborhood to rent in Naples remains Chiaiaia, Mergelina, which tends to the mark of 17 euros per square meter (+7% over the last year). The area that has seen the greatest rental growth over the last year is Zona Industriale, Centro Direzionale: +20.3%. The most expensive neighborhood in Bari remains Borgo Antico, Murat, Madonnella, also for rent, with 11.7 euros per square meter, +12% per year. In Palermo the most expensive neighborhood is Lanza di Scelea, Olimpo, Castelforte with 13.7 euros per square meter on average, 53% more than a year ago. Buying a house is the best investment for children: this is the opinion of almost 3 Italians out of 4.