New builds in Italy are selling like hot cakes, despite the huge price gap to resale properties.
According to statistical agency Scenari Immobiliari, in 2023 new homes in Italian cities make up only about 10% of the supply (still very little), and they cost three times more than secondary housing. In 2022, the number of sales of new buildings in Italy increased by 10%, in 2023 – by 2.7%, while at the same time the number of transactions in the secondary market fell by 8%.
The supply of new housing in Italy continues to significantly exceed demand. It is clear that prices for new houses in Italy are also rising: the average increase over the past two years has been more than 3%, which will also extend into 2023, where an increase of 4.6% is expected.
Despite the difficulties in recent months, especially in the first half of 2023, the Italian property market has held up. The average difference between the price of a new house and a used one in the 11 main provincial capitals analyzed in the Scenari Immobiliari study is 37.4%, with a difference of 1,800 euros per square meter. “New” costs a third more than secondary, and therefore all new buildings are built with high quality and meet the taste of buyers thanks to high-class finishing.
Since new homes in Italy are usually sold turnkey, buyers will not have to deal with the uncertainty of the timing and cost of renovations. But the supply on the market is still too low: on average, in large European cities, new buildings account for about 20% of the city’s total supply.
In the ranking of Italian cities by cost per square meter, obtained from the price difference between new buildings and secondary housing, the absolute leader is Milan. Here, in fact, the price difference reaches almost 3,400 euros per square meter, which is equal 43.2% higher for new vs resale, and is clearly ahead of Florence, second in the standings with almost 3,000 euros per square meter, with a difference of 36.5% between the cost of new and resale properties.
Rome ranks third (33.9%) with a price gap between new and existing homes. As Rome is a unique ancient city, home to numerous world cultural heritage sites, there are strict restrictions on the new construction. There is also no possibility to expand the metro lines. However, in the suburbs of Rome there is a large number of interesting developments taking place, with prices often ranging from 2500 to 3300 euros per square meter. For example, these are Acsa, Infernetto, Fiumicino and Anzio neighbourhoods .
In Rome itself you can also find an apartment in a new residential complex, but such offers, especially in the city center, are in great demand. Italians and international investors often prefer to purchase properties in historical buildings that have undergone a complete renovation with replacement of communications. Ideally, they will get a new apartment complete with a premium finish, in a beautiful and elegant building, in one of the prestigious central residential areas, such as Parioli next to the Villa Borghese park.