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Rome's real estate market is experiencing steady growth with prices up 6.9% year-over-year as of June 2025.
The market is characterized by strong buyer demand, tightening supply, and sellers holding firm on prices, particularly in central neighborhoods. The upcoming Jubilee Year is amplifying demand for both purchases and rentals, while government incentives for renovations and lower mortgage rates are supporting market activity.
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Average home prices in Rome have risen 6.9% year-over-year to €3,590/m² as of June 2025, with central districts seeing gains up to 10%.
The market shows stable to increasing transaction volumes, heating buyer demand, and tightening supply, particularly for rentals and centrally located properties.
| Market Indicator | June 2025 Status | Key Details |
|---|---|---|
| Average Price per m² | €3,590 (+6.9% YoY) | Highest level in two years |
| Transaction Volume | Stable to rising | +2% growth continuing from 2024 |
| Mortgage Rates | 3.2-3.8% fixed | Down from 2023 peaks |
| Average Rental Yield | 7.1% | Range: 3.4% to 9%+ |
| Time on Market | ~5 months | Shortest in years |
| Price Negotiation Discount | ~7% | Record low discount rate |
| Hot Neighborhoods | Centro Storico, Prati | Also Garbatella, Parioli, EUR |
Have property prices in Rome gone up or down in the past year?
Property prices in Rome have definitely gone up over the past 12-18 months.
As of June 2025, the average asking price for residential properties in Rome has reached €3,590 per square meter, representing a solid 6.94% increase compared to the same period last year. This marks the highest price level we've seen in Rome in two years. Central districts have performed even better, with some prestigious neighborhoods like Prati and Aurelio recording price increases up to 10%.
The steady price growth is driven by several factors: limited new construction in the city center, strong demand from both domestic and international buyers, and anticipation of the Jubilee Year which is attracting significant investment interest.
If you're looking at specific neighborhoods, the price increases have been most pronounced in central and high-demand areas where supply remains particularly constrained.
Are property sales in Rome picking up or slowing down right now?
Property sales in Rome are picking up and showing stable to slightly increasing volumes.
After experiencing a dip in early 2024, the Rome real estate market rebounded strongly, finishing 2024 with a 2% increase in total sales. This positive momentum has continued into 2025, with transaction volumes remaining stable to slightly rising, particularly for larger apartments and newly built units.
The market is now characterized by lively and stable demand, though the constrained supply means properties are selling faster than before. Real estate agents report that the average time on market has dropped to about 5 months, which is the shortest we've seen in years.
This recovery in sales volumes indicates renewed confidence in the Rome property market, supported by improved mortgage conditions and strong buyer interest ahead of the Jubilee Year celebrations.
Is buyer demand in Rome increasing or decreasing compared to earlier this year?
Buyer demand in Rome is heating up significantly compared to earlier in 2025.
Real estate professionals report that the number of potential buyers has increased notably, creating a more competitive environment. This intensified demand is driven by three main factors: lower mortgage rates making financing more accessible, strong investment interest ahead of the Jubilee Year, and a persistent shortage of quality properties on the market.
Agents are seeing more competitive bidding situations, especially for properties in central neighborhoods and for energy-efficient or newly renovated homes. The improved buyer sentiment is also reflected in faster decision-making, with well-priced properties often receiving multiple offers within days of listing.
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The demand is particularly strong from both domestic buyers looking to upgrade and international investors seeking to capitalize on Rome's enduring appeal and the upcoming Jubilee celebrations.
How are current mortgage rates affecting buyers in Rome this June?
Mortgage rates have declined from their 2023 peaks, making financing more accessible but affordability remains challenging for many buyers.
As of June 2025, typical fixed mortgage rates in Italy range between 3.2% and 3.8% for non-residents, following recent ECB rate cuts. This represents a significant improvement from the higher rates seen in 2023 and early 2024, and has contributed to the recent pickup in sales activity.
However, there are still significant hurdles for buyers. Banks require high down payments, typically 40-50% for non-residents, and lending standards remain strict. The average interest rate on outstanding mortgages is expected to rise gradually due to lag effects from previous rate hikes, which keeps affordability tight for some buyers.
First-time buyers and residents generally have better access to financing with lower down payment requirements, but the overall mortgage market remains more restrictive than pre-2022 levels.
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Is inflation still affecting Rome's real estate market?
Inflation is still impacting the market but its effect is easing as rates moderate.
While inflation in Italy has come down from its peaks, it remains above the ECB's target level. This continues to affect both buyer sentiment and construction costs, making new developments more expensive and pushing up prices for existing properties. Initially, high inflation discouraged some buyers and made investors cautious about entering the market.
However, as we reach mid-2025, the stabilization of inflation rates combined with lower mortgage rates is restoring confidence. Many investors now view Rome real estate as an effective hedge against inflation, preferring property investments over holding cash or bonds that lose value in real terms.
Construction costs remain elevated due to inflation's impact on materials and labor, which limits new supply coming to market and supports price growth for existing properties. The overall effect is that inflation continues to be a headwind, but it's no longer the major deterrent it was in 2023-2024.
Are there new government rules or incentives affecting Rome's housing market?
| Government Measure | Details | Impact on Market |
|---|---|---|
| Renovation Tax Credit | 50% deduction for main home renovations | Encourages property upgrades and sales of renovated homes |
| Ecobonus | 50% deduction for energy efficiency works | Drives demand for older properties that can be improved |
| Superbonus (reduced) | Available for projects started before late 2024 | Limited impact on new projects but supports ongoing renovations |
| Short-term Rental Tax | Increased from 21% to 26% on second properties | Pushes landlords toward long-term rentals |
| First-home Benefits | Maintained and enhanced incentives | Supports first-time buyer demand |
| Future Rate Reductions | Tax incentives will decrease in coming years | Creating urgency for buyers to act in 2025 |
| Jubilee Preparations | Infrastructure and beautification projects | Increasing property values in affected areas |
Is housing inventory in Rome getting tighter or expanding?
Housing inventory in Rome is definitely tightening, creating a seller's market.
The supply of homes for sale is not keeping pace with the strong buyer demand, leading to shorter listing times and upward pressure on prices. This is particularly acute for rental properties and centrally located homes, where inventory has shrunk significantly.
The short-term rental market, boosted by anticipation of the Jubilee Year, is further reducing the availability of long-term rental properties. Many landlords are converting long-term rentals to short-term accommodations to capitalize on expected tourist demand, exacerbating the supply crunch for residents.
New construction remains limited, especially in central Rome where building restrictions and lack of available land constrain development. The combination of strong demand and limited supply is creating competitive conditions where well-priced properties often receive multiple offers quickly.
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Are sellers still getting their asking prices or are buyers negotiating better deals?
Sellers in Rome are holding firm on prices with minimal room for negotiation.
The average discount on asking prices has dropped to a record low of about 7%, compared to the typical 10-15% discounts seen in previous years. This reflects the strong seller's market conditions, where limited supply and robust demand give property owners the upper hand in negotiations.
Properties are spending an average of just 5 months on the market, the shortest time frame in years. Well-priced properties in desirable neighborhoods often sell at or very close to asking price, sometimes with multiple buyers competing.
Real estate agents report that the main reason for failed sales is now the gap between asking and offered prices, rather than mortgage rejections. This indicates that sellers have strong price expectations and are willing to wait for buyers who meet their terms rather than accepting lower offers.
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Which price segments are most active in Rome's market right now?
The luxury and entry-level segments are seeing the most activity in Rome's current market.
Luxury properties in central Rome, particularly in neighborhoods like Centro Storico, Parioli, and Trieste, are experiencing strong demand and the highest price growth. These properties are attracting affluent domestic buyers as well as international investors who see Rome's premium real estate as a safe haven investment ahead of the Jubilee Year.
At the other end of the spectrum, the entry-level and budget segments are also very active. First-time buyers are actively searching for affordable options, often relying more on personal savings than mortgages due to strict lending conditions. These buyers are looking for smaller apartments or properties in emerging neighborhoods where prices remain more accessible.
The mid-range market is notably less dynamic, with buyers gravitating toward either high-end properties for their investment potential or more affordable options that fit within tight budgets. This polarization reflects both the wealth gap among buyers and the challenges of obtaining mid-level financing in the current mortgage environment.
Which Rome neighborhoods are attracting the most buyers?
- Centro Storico - The historic center remains the most prestigious and sought-after area, with prices reflecting its prime location near major attractions and excellent walkability.
- Prati - This elegant neighborhood near Vatican City offers a perfect blend of residential comfort and central location, attracting both families and investors.
- Garbatella-Ostiense - An increasingly trendy area combining historic charm with modern amenities, popular among young professionals and creatives.
- Parioli - Rome's upscale residential district continues to attract wealthy buyers seeking spacious properties in a green, quiet setting.
- Aventino - This exclusive hilltop neighborhood offers tranquility and stunning views while remaining close to the center.
- EUR - This modern business district is gaining residential appeal, offering larger homes and outdoor spaces at relatively lower prices.
- Trastevere - Though pricey, this bohemian neighborhood maintains strong appeal for its authentic Roman atmosphere and nightlife.
- Testaccio - An emerging foodie paradise attracting younger buyers who appreciate its authenticity and improving infrastructure.
How are rental yields performing and what's the investor outlook?
Rental yields in Rome remain attractive at an average of 7.1%, though new tax pressures are shifting investor strategies.
The rental yield range is quite broad, from 3.4% in premium central locations to over 9% in emerging neighborhoods, giving investors various options depending on their risk tolerance and investment goals. The upcoming Jubilee Year is temporarily boosting short-term rental demand and rates, particularly in tourist-friendly central areas.
However, the government's increase in short-term rental taxes from 21% to 26% on second and subsequent properties is prompting many landlords to reconsider their strategies. Some are shifting toward long-term leases for greater stability and lower tax burdens, while others are holding onto short-term rentals to capitalize on Jubilee-related demand.
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Overall investor sentiment remains positive, with Rome real estate viewed as a solid long-term investment, especially given the city's enduring appeal and limited new supply. The combination of capital appreciation potential and steady rental income continues to attract both domestic and international investors.
What should buyers and investors watch for in the next 3-6 months?
The Rome real estate market is set for continued stability with a slight upward bias through the rest of 2025.
Most experts forecast moderate price growth will continue, especially in central and high-demand neighborhoods. The market will likely remain competitive with limited supply and strong demand supporting both sales prices and rents. The Jubilee Year celebrations starting in December will keep both the sales and rental markets particularly active in central Rome.
Key factors to monitor include potential further ECB interest rate cuts which could improve mortgage accessibility, possible new regulations on short-term rentals as the city manages tourist influx, and the ongoing impact of government renovation incentives which are scheduled to decrease in coming years.
Barring major global economic shocks or a resurgence of inflation, Rome's residential property market appears positioned for a period of relative stability with continued moderate price appreciation. Buyers should be prepared for competitive conditions, while investors can expect steady returns but should factor in the changing regulatory landscape for rentals.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Rome's real estate market in June 2025 presents a robust picture with steady price growth, strong demand, and tightening supply creating favorable conditions for sellers and challenges for buyers.
The combination of lower mortgage rates, government renovation incentives, and anticipation of the Jubilee Year is driving market activity, though affordability remains a concern for many potential buyers. Investors continue to find attractive opportunities, particularly in emerging neighborhoods, despite new regulations affecting the short-term rental sector.
Sources
- Immobiliare.it - Rome Real Estate Market Report
- Idealista - House Prices in Rome 2024
- Bank of Italy - Housing Market Survey Q1 2025
- DILS - Italy Real Estate Market Q1 2025
- Chambers - Italy Real Estate Trends 2025
- Studio Immobiliare SI - Tax Incentives 2025
- Engel & Völkers - Rome Property Prices
- Best Yield Finder - Rome Rental Yields
- Cushman & Wakefield - Italian Real Estate Trends
- Mondaq - Italy Real Estate Market 2025