The real estate market is slowing down: -20% in Milan and Rome

The real estate market is slowing. High interest rates and the promise of tougher taxes on short-term rentals slowed residential home sales in Italy in the second quarter of 2023, according to data from the Tax Agency analyzed by the Teknokaz Group's Research Department. Sales fell 16%, a bigger slowdown than in the first quarter of this year.

Decrease in major cities.

As usual, non-capital cities perform better than major capitals, with a slight decline of 15.4% compared to 17.2%.

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Standing out are the declines in Bologna (-22.8%), Rome (-21.5%) andMilan (-17.1%), which is saved only by less significant declines''in the periphery compared to the central areas, where the decrease amounted to 20%. Palermo and Naples performed best with -4.9% and -5.3% respectively.

The data provided by the Research Department of the Teknokaza Group indicate that the real estate market is in a period of significant slowdown: rising interest rates and general uncertainty are creating caution among potential buyers, especially those in need of a mortgage. In fact, there is a reduction in demand on the lending front, and lending institutions are increasingly scrutinizing the creditworthiness of applicants.