Italy economy: rising house prices and shifting credit trends

Italy is experiencing a rise in housing prices and shifts in the credit and mobility markets. According to Istat, the housing price index (IPAB) rose by 1.7% in the second quarter of 2026 compared to the previous quarter, and by 4.0% compared to the same period in 2025. New homes saw a 5.0% increase, while existing homes rose by 3.7%. Significant annual growth was noted in cities like Turin, which saw an 8.5% increase.

In the mortgage market, the average fixed-rate TAN for 20 and 30-year terms increased from 3.35% in July to 3.46% in August. This rise is attributed to European bond market trends and geopolitical uncertainty in the Middle East. Conversely, variable rates remained stable at 2.80%.

In the automotive sector, vehicle leasing registrations grew by 3.3% between April and June 2026, driven primarily by short-term rentals, while long-term leasing saw a decline of nearly 5,000 units. Meanwhile, the Italian financial system remains attentive to an upcoming Moody's rating evaluation, which will impact national debt costs and investor confidence.