No. 1013 - From bricks to green bricks: evidence from the Italian green mortgage market in 2022-2024
'Green' mortgages are intended to finance the purchase of properties with high energy efficiency or the renovation of existing buildings for the purpose of improving their energy class. This paper leverages information from different databases to analyse the dynamics of the Italian green mortgage market between 2022 and 2024 in terms of lending volumes and rates offered to customers.
Over the three‑year period analysed, green mortgages recorded a rapid expansion in Italy, driven by the increasing number of banks offering this product. According to survey evidence covering a broad sample of financial intermediaries, the volume of green mortgages disbursed rose by 50 per cent, reaching €5.4 billion at the end of 2024; their share in total mortgage flows doubled to 12 per cent. Taking as given the characteristics of the applicant and the loan, the interest rates applied to green mortgages were, on average, 18 basis points lower than those charged on other mortgages.
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