The recovery of Italy’s real estate market is still uncertain after residential property prices fell 1.8% during the six months to June 2010, according to a report from Nomisma.

The number of residential properties sold in the first half of 2010 was 30% lower than before the financial crisis began in 2008. Property prices had fallen 2.5% in the first half of 2009, although they had picked up in the second half of the year.

The report stated: ‘Abroad, the market recovery has been felt for some months now, with investments resuming and prices picking up. The Italian market still appears to be far from a firm recovery in terms of both prices and sales volumes.’

Prices for apartments in Rome fell to 3.2%, those in Sicily fell to 5.3%, and Milan experienced a drop to 4%; they are now not expected to rise until the end of 2011.