Italy’s housing market is weakening again, with nationwide house prices falling by 7.8% during the year to Q1 2022, in contrast to a slight growth of 0.3% a year earlier, according to Global Property Guide. This is the biggest y-o-y decline in Italy’s house prices for seven years. Quarter-on-quarter, prices dropped 3.7% in Q1. Economic growth is projected to slow to 2.4% this year, from a 6.6% expansion in 2021.

When adjusted for inflation, the report states that over the past 10 years Italian property prices have fallen from around €2,300sqm to the equivalent of around €1,500sqm today, a fall of 35% in real terms.

Meanwhile, Spain’s housing market is also losing steam, with house prices falling by 6.9% in Q1 2022 from a year earlier, following a minuscule increase of 0.1% in the year to Q1 2021. On a quarterly basis, house prices fell 3.6% during the latest quarter. The Spanish economy is expected to expand by 4% in 2022, following a 5.1% growth in 2021 and a 10.8% contraction in 2020.

When adjusted for inflation, the Global House Price Index states that over the past 10 years Spanish property prices have fallen from around €1,950sqm to €1,550sqm, after inflation, a fall of 21% in real terms.