The real estate agency market - Italy

The real estate agency industry continues to expand globally, with an estimated value of $1,406 billion in 2023, set to reach $1,943 billion in 2028, thanks to a compound annual growth rate (CAGR) of 6.8 percent. This development is supported by increasing urbanization, rising demand for brokerage services, and the digitization of the industry. The need for professional solutions for buying, selling, and managing real estate is driving the industry toward increasing adoption of advanced technologies, such as property management platforms based on artificial intelligence and big data analytics. In Europe, the market has experienced significant growth, rising from $260 billion in 2022 to a projected $376.79 billion in 2032. The expansion is mainly driven by investment in the residential sector, which accounts for the largest share of transactions, thanks to purchase incentive policies and interest rates that are still competitive with those of the past. In Italy, the real estate agency market has shown a positive evolution over the past few years. Between 2017 and 2024, the total turnover of companies in the sector increased by 69 percent, from 2.82 billion euros to 4.77 billion euros. After a slowdown in 2020, linked to the effects of the pandemic and a temporary reduction in transactions, the sector has experienced a rapid recovery, driven by strong demand in the residential segment, which accounted for 48.1 percent of purchases and sales in 2023.Renting remains a key element of the market, although it declined between 2018 and 2023, mainly due torising rents andincreasing interest in short-term tourist rentals, fueled by the growth of digital platforms such as Airbnb. This trend has reduced the supply available for long-term rentals, contributing to rising prices in major urban centers. Geographically, the Northwest dominates the sector, accounting for 37.2 percent of total turnover, followed by the Center (24.6 percent) and the Northeast (19.8 percent). The South, although growing, continues to account for a smaller market share, influenced by lower demand and greater volatility in local real estate. The Italian real estate sector is characterized byhigh fragmentation, with more than 37,000 active agencies in 2023. The majority are independent agencies, often family-owned or small, but there is significant growth in franchised agencies, with a 25 percent increase since 2018. Established networks such as Tecnocasa and Gabetti are strengthening their presence, capitalizing on recognized brands and advanced digital strategies. On theinnovation front, the market is evolving rapidly through theadoption of advanced technologies. Tools such as artificial intelligence, used to optimize property valuations and personalize proposals to clients, and 3D modeling and virtual reality, which allows immersive tours of properties, are transforming the way agencies interact with the market and clients. These innovations not only improve operational efficiency, but also increase the competitiveness of agencies that adopt them.

Analyst's comment The real estate agency market is confirmed to be expanding, driven by urbanization, digitalization, and increasing demand for professional brokerage services. While growth globally is supported by broader and more dynamic demand, in Europe and Italy the sector is characterized by greater maturity and stability. The main challenge for Italian agencies will be to cope with market fragmentation and growing competition from large franchise networks. The adoption of advanced technological tools will be a key element in differentiating themselves, improving operational efficiency and responding to the new demands of a market increasingly oriented toward digitization and personalization of services.