Month: September 2017

World Capital, the logistics market has grown in the first semester of the year

 

World Capital, sponsored by Nomisma and in collaboration with Assologistica and professor Fabrizio Dallari, has presented the figures concerning the national logistic property market for the first half of 2017. The analysis shows the market consistently growing, reaching approximately 700 million euro in the only Italian territory.

The logistics property market

For the first semester of the year, the rentals have been substantially unchanged compared to the previous semester, except for the new properties in the north of the country (built in the last ten years or redeveloped)that grew by +4%. The cities on top of the list are Genoa (62 €/Sq m/year)and Milan (55 €/Sq m/year), followed by Rome (56 €/Sq m/year) and Catania (46 €/Sq m/year). For what concerns the rentals of used properties, the highest values were registered in cities such as Florence and Milan (50 €/Sq m/year), Rome (48 €/Sq m/year), and Genoa (47 €/Sq m/year).

Regarding the dimensions, the most requested properties were above 5,000 Sq m with 53% of the total, followed by spaces comprised between 1,000 and 5,000 with 35%, while only 12% requested spaces below 1,000 Sq m.

Concerning the credibility of the sector, the logistics property market confirms its steady growth, with total investments amounting to 700 million euro only in Italy. The increasing interest of the investors for logistics properties and the competition over the quality assets in the best location and with reputable tenants were factors for the yields to reduce. The most significant variations were registered in Milan and Genoa. In fact, the net returns in Milan for the first semester have been between a minimum of 6% and a maximum of 7.2%, whereas in Genoa the range varies from 6.4% to 7.5%.

The totality of the logistics assets covers a surface of about 34,700,000 Sq m, 75% of which is represented by properties for logistics purposes, with a surface of 26 million Sq m.

Considering the total national stock, covering 26 million Sq m, 64% is located in Northern Italy, more precisely in the North-West, with a total of approximately 11,700,000 Sq m, followed by the North-East with about 6,100,000 Sq m. The remaining stock is in the Centre with approximately 4,600,000 Sq m, the South with approximately 2,760,000 Sq m, and the Isles with 800,000 Sq m. Lombardy is the region with the highest concentration of surfaces for logistics use with 9 million Sq m (39%). Together with Lombardy, Emilia-Romagna, Lazio, Piedmont, and Veneto accommodate 74% of the total national assets. At a province level, Milan is in the first position, registering 16% of the total stock of logistic properties.

“In the first part of the year we have reported a positive trend and the interest of the investors for the logistics real estate market, supported by an increasing demand by the operators of the logistics sectors, – states Neda Aghabegloo, responsible for the World Capital Research and Advisory Department – the investors don’t only focus on the rental of new warehouses, with surfaces over 5,000 Sq m, but they also participate in the development of new ones, which in 80% of the cases are built  according to specific requirements, the so-called “built-to-suit”.  Besides, the absorption of the market has increased. Finally, innovation and e-commerce are changing the supply chain which is gradually becoming a demand chain.”

 

Source: https://www.idealista.it/news/immobiliare/locali-commerciali/2017/09/22/124059-world-capital-cresce-il-mercato-logistico-nel-primo-semestre-dellanno

Translator: Cristina Ambrosi

Tecnocasa: prices reducing for touristic properties

 

In the first half of 2017, prices of real estate properties have seen a contraction compared to the previous semester. The figures by Tecnocasa show a fall of 0.7% in the beach and mountain destinations, and of 0.8% in the lake ones.

Concerning beach destinations, the best performances have been registered in Sicily where the prices have risen by 1.6%, followed by Emilia Romagna (-0.2%), Campania (-0.4%), Sardinia and Liguria (-0.5%). The variation was sharper in Tuscany (-4.0%) and in Veneto (-2.7%).

For what concerns mountain destinations, in Valle d’Aosta prices have fallen by 0.5%, while Piedmont has registered the biggest contraction with 1.5%.

In lake destinations, the towns on the Verona side of Garda lake have remained substantially unchanged. The Brescia side of the lake has instead reported a fall of 0.2%.

Analysing the sales mediated by Tecnocasa and Tecnorete in the first semester of 2017, it turns out that the favourite type of holiday house is the three- bedroom apartment, followed by detached and semi-detached houses. Two-bedroom apartments are also doing well with 24.26% of the total transactions.

House buyers are mostly people aged between 55 and 64 (30.4%), followed by the age range comprised between 45 and 54 years (27.9%), and between 35 and 44 (21.2%). They’re mainly couples and families.

 

Source: http://www.monitorimmobiliare.it/tecnocasa-prezzi-in-calo-per-l-immobiliare-turistico-tabelle_20179251255

Translator: Cristina Ambrosi

OMI quarterly statistics: real estate is growing

 

The quarterly statistics by OMI (Revenue’s real estate observatory) are very clear. In the second quarter of 2017, the real estate market has grown, even though the rates are slowing down compared to the first semester.

OMI has recently published the figures referring to the second quarter of 2017. The Italian property market is rising. In fact, the survey reports an increase of transactions of houses equal to 3.8%, while those for accessory properties such as cellars and attics have grown by 10.1% compared to the same period of the previous year. The commercial segment too reported a growth with +6.2%, whereas the industrial one shows a growth of 4.9%. The residential market continues to grow confirming the positive trend of the last 3 years. In the period between April and June 2017, 145,529 houses were sold, approximately 5,000 more compared to the same quarter of 2016.

The South registers the highest variation with +5.0%. The Islands report a smaller variation (+0.9%) but we must consider their market weights one-tenth on the total national market. The figures concerning the North-East and the Centre are equal to +3.6%, while in the North-West they’re slightly higher (4.3%).

However, the growth rates of the property market have slowed down compared to the first quarter.

 

The real estate market in the big cities

The residential market has shown the highest growth rate in the big cities with +4.4%. These are the results concerning the first eight Italian cities per population:

  • Naples: house purchases increased by 13.6%
  • Palermo: +8.3% growth
  • Turin registers +5.7%
  • Rome and Milan report results slightly over 4% falling in the average for big cities
  • Genoa remains unchanged with +1.3%
  • Florence only registers 0.9%
  • Bologna reports a negative trend with -4,3% with little more than 1,500 sales

 

Allocated depots

The situation concerning depots is quite different, in the eight main Italian cities, the sales of allocated depots have grown in total by 9% compared to the second quarter of 2016. Here are the more relevant facts:

  • The sales of cellars and attics in Bologna have registered an increase of 27.3%, while in Florence they have decreased by 9.2%
  • The transactions of storage and parking spaces in Naples and Florence have grown respectively by 23.1% and 18.3%. Palermo and Bologna have registered a fall around 10%.

 

Source: http://www.visureitalia.com/smartfocus/mercato-immobiliare-in-crescita-statistiche-omi/

Translator: Cristina Ambrosi

Italy is a country of money savers

 

House is the first investment. Assets for 2 billion to manage

Italians are a country of money savers. Saving money didn’t decrease during the recession years started in 2008 and now, with the first signs of recovery, it’s increasing. According to the Intesa Sanpaolo President Gian Maria Gros-Pietro, “we’re returning being a country of money savers”, as he stated a couple of days ago at the presentation in Turin of the Survey on Italians’ saving and financial choices for the year 2017 by Centro Einaudi and Intesa Sanpaolo.

The survey shows how for the second consecutive year the economic conditions of the Italians are improving and we can even say that they left the crisis behind. Unlike 2016, the 2017 survey sees all the social classes benefiting from the economic recovery: the low-income class, the medium, and the high-income ones. The leap of 10 points on the quota of Italians that consider themselves financially independent is remarkable, going from 82 to 92%, the highest value after the crisis. This growth is related also to the change in the types of income, featuring income from work increasing to 58% after falling below 50% in the past years. Also, the economic outlook is confirming that Italy is doing better. Gregorio De Felice, Intesa Sanpaolo chief economist, reminded the results of the analysis carried out by the bank and how they forecast the GDP to grow further this year reaching 1.4%. The recovery is also confirmed, as highlighted by Gros-Pietro, by the increase of the industrial production (+4.4%) and the export (+8%), while the occupation is reporting the best trend of the last six years. This economic recovery is also due to the input of new capital by banks to families and businesses, with Intesa Sanpaolo among the most active ones, having issued to the system 25 billion in the first semester of the year with an increase of 6.5% compared to the same period of 2016.

As a consequence, the amount families are able to put aside money has grown, going from  40 to 43.4% with a quota of income destined to saving equal to 11.8%  and a stock of managed funds reaching 2 thousand billion, an amount very close to the national debt, without considering the other forms of saving. Moreover, Gros-Pietro reminded, referring to the growth by 14 billion of the funds managed by the bank in the last six months, the 6 thousand billion properties owned by Italians for a quota of house-owners close to 78%. People mainly save money to deal with uncertainty, to buy a house (16%), and for the children.

Saving for retirement is rising too, even if slightly (from 14.1 to 20.7%), in the form of supplementary pensions. However, saving mainly means doing it without bad surprises. The capital safety comes at first for 61.9% of the Italians, followed by cash availability ready to use (36.8%). The attitude to wait, at least three years, for better returns on the investment is also growing (37%). Concerning the instruments, families choosing managed funds have increased from 8 to 13%, while the investments in national bonds and obligations have decreased from 27 to 25%, despite the low interest rates. On the other hand, there is a revival of the Stock Exchange with equities interesting 5.5% of the people surveyed. Nevertheless, Italians are still investing a lot in real estate. Despite the crisis that impacted the property market in last few years, for Italians, the house remains the safest of investments. As a result, the survey by Centro Einaudi shows how 77.6% of the families live in the house they own. To the point that the average value per family of the real estate assets, excluding the existing mortgages, amounts to 217 thousand euro, for a total real estate asset value approximately three times and a half the GDP, twice the asset value deriving from securities. House is perceived as an investment that helps saving on rents and as an inheritance to pass to children. This is the reason why it’s so hard to disinvest such an asset. As a result, since January 2016 5% of the surveyed has bought a house.

 

Source: QN Economia & Lavoro

Translator: Cristina Ambrosi

New shopping centre, green light for the construction works to resume

 

The construction site is stuck because the owner presented a variation. The Building Srl responsible, Alberto Ricci: “ Restarting in a month”.

The construction works for the shopping village will resume in a month, the complex will be located in the Rosignano-Solvay area between Le Piscine and the Morelline industrial district. Alberto Ricci, Building Srl. legal representative, reassures the citizens that for weeks have been wondering why the works are stuck: “We had to adjust the project – he says – but we’ll resume the works in one month”. Margherita Pia, councillor for Urban Planning explains: “Basically the company presented a variation to the project changing the entrance for service vehicles, only an instrumental change that doesn’t impact the content of the project”.

In the past few weeks, many residents were wondering whether there were technical problems that caused the site to stop. The company confirms its will to continue the works as quickly as possible with the construction of a shopping centre composed of two buildings of 1,500 sq m each, commercial spaces to sell to neighbouring shops, 12 office spaces, 430 parking spaces for the customers of the shopping village. The area where the complex will rise is located between Solvay and Le Morelline, more specifically in the area comprised between Via Filidei, Via del Mondiglio, and Via Delle Pescine. The lot faces the entrance of the Solvay plant and has never been used before.

The area was originally Solvay’s property and was bought by Building Srl. Previously the area was destined to artisanal use and its purpose was changed through a city planning intervention. Therefore, the works will resume in one month together with the start of the construction of the commercial facility. It will include a medium sized grocery shop, a 1500 sq m space for nongrocery products and a bigger building that will accommodate the neighbouring shops and services. A village of shops and offices whose project was debated by small business owners but that has been already successfully tested in the surrounding towns such as Cecina and Livorno.

 

Source: http://m.iltirreno.gelocal.it/cecina/cronaca/2017/09/24/news/nuovo-centro-commerciale-ok-alla-ripresa-dei-lavori-1.15898574

Translator: Cristina Ambrosi

NPLs and banks: what to expect from the Financial Committee

 

The Senate Financial Committee aims at implementing by 20th October a resolution on how to manage banks’ bad loans in order to participate in the administrative and legislative part of the process.

It was stated and reported by the spokesman of the committee Gianluca Susta, adding that “the analysis of the matter will find its actualization only with the consultation with the European Committee expected by 20th October, followed then by further actions in collaboration with Abe (European Banking Authority), the European Central Bank, and the member countries in order to strengthen the European banking system”.

Susta had then again stressed that “it’s necessary to implement proactive policies in order to clean up banks’ financial statements” and that “it’s essential that banks actively manage these exposures in a stricter way than in the past and that they define a feasible strategy for the progressive reduction of the number of bad loans in order to avoid them to accumulate once again”.

 

Source: http://www.publicpolicy.it/npl-banche-cosa-bolle-6a-commissione-73185.html

Translator: Cristina Ambrosi

“It’s still not possible to talk about recovery of the sector, but only about market of the opportunities”

 

After having guided FIAIP (Italian Federation of Professional Real Estate Agents)for eight years, Paolo Righi will leave his role as president during the national congress taking place in Verona. A role that meant years of battles for him, but also achievements in terms of recognition and better conditions for the profession of real estate broker. Righi speaks about these last eight years, how the industry and the profession have changed, and the matters still left unsolved that will go to his successor.

What are your thoughts about your experience as FIAIP president?

These past few years have been intense, so much happened, the reference economic and social model has completely changed. And these changes, this new way to do business, affected FIAIP which responded excellently to the 2008 crisis. We went through these years and we got stronger. The way how we relate to clients has changed. As the last analysis of Tecnoborsa showed, the sale through agency has gone from 43% to 60%.

How has the figure of real estate agent changed in the past few years?

Till 2008 the real estate agents had a secondary role in the property trading: their task was simply to put on the market a nice apartment. Now the client is looking for a pro, someone knowledgeable, proactive, someone to appoint for the search of a house.

How has the property market changed?

For years the banks haven’t favoured the purchase of a house, without considering that in 2011 the Monti administration raised the taxation on property from 9.5 to 25 billion. This had serious consequences on the real estate market. Nowadays the sales have increased, but the prices are still stable, therefore we can’t talk about a real recovery. When sales increase but price remain unchanged, we can talk about market of the opportunities. People don’t trust banks anymore, they don’t buy bonds anymore, all the other instruments don’t give high returns, therefore people prefer a safer investment in the medium-long term such as the house.

As the FIAIP president you fought many battles, is there one you’re particularly proud of?

As FIAIP we fought battles that we believed just, not those we thought to certainly win, it would have been too easy otherwise. One I’m particularly satisfied with is the one against Enasarco (the national social security institution for all the independent sales agents) which wanted to introduce a new social security tax bringing the taxation from 3,000 to 10,000 euro yearly. But we acted promptly and didn’t fall into the trap. Now we are in good relationships with Enasarco, we won the battle.

Another battle I’m proud of has been the one for the change of the Law 39/89 for heavier sanctions on unchartered agents. After having got the approval from the Senate, the law got stuck at the Chamber of Deputies. But we’re pushing for the approval of the regulation.

What are instead your most recent battles, such as that for short rentals?

Firstly we succeeded in getting an extension in the first payment of the flat tax on rental income because we managed to make understand the impossibility for the agents to become in three days withholding agents, enforcing the statute of taxpayers. Otherwise, there would have been already investigations and sanctions.

Finally, the Revenue Office assured it would send tutorial and guidelines to all the agents, regardless of the association they belong. We also met the Vice Minister Casero since politicians are intending to treat real estate agents as public clerks. The solution for us would be the one proposed a long time ago by Confedilizia: extend the flat tax on all types of lease, not only of residential properties.

What legacy do you want to pass to your successor?

Certainly, considering the challenging market of the last eight years, I have been a fighter. My legacy will consist in all the things still to sort out. First, the fight against the banks entering the property market. It’s not that we don’t want competition, our point is instead that banks should have a social role, which is financing enterprises. But when they become enterprises themselves, they steal wealth from the society and the middle class. Each of us has to do its job, if everybody did their job in Italy, there wouldn’t be any problem.

What do you wish for the profession?

Definitely that real estate agents exit from the Chambers of Commerce and a specific plan of studies for the profession. The courses currently offered by the Chambers of Commerce don’t cover even 50% of the duties and the requirements for a real estate agent. In many of these courses, they don’t even talk about anti-money laundering.

Certainly, agents have to change their mindset, they need a more in-depth knowledge of the sector, more professionalism, along with the implementation of a local and regional network. We made the tools available, but if the real estate agents don’t change their approach, there will be little result. The tools don’t make the market, the operators do. I wish for the future the creation of a common trade association representing all the real estate agents and the totality of people working in this industry.

What will you do after the election of the new president?

A well deserved holiday, then I’ll surely continue working in this sector, but I’ll be a very reserved ex-president. Who has been a president he’ll be it for his entire life, there’s nothing you can do. As I provided my services in support of this category, I expect they’ll do the same for me.

 

Source: https://www.idealista.it/news/immobiliare/residenziale/2017/09/22/124052-intervista-paolo-righi-fiaip

Translator: Cristina Ambrosi

Milan, the comeback of luxury houses

 

In the past ten years, over 28 thousand new properties were registered in the real estate registry. Fewer working-class houses (A4) and more high-class ones (A1), thanks to Porta Nuova and CityLife.

In the past ten years, millions of houses were registered, with an estimated increase of over 581 million Sq m surface, almost the same area occupied by Rome.

To be honest, they’re not all newly constructed buildings, due to the “ghost houses” operation launched a couple of years ago by the former Land Registry Office that brought to the identification of 1.2 million rural houses that were requalified in order to give an income. Nevertheless, it’s still an amazing quantity of construction activity, and it’s even more surprising if we consider not only houses but also offices, shops, and parking lots. According to the last figures from the Land Registry Office updated up to 2016 and recently published, in Italy, there are 74.3 million properties, 64.5 million of which giving an income.

Speaking about residential properties, in the country there are nearly 35 million houses, one for 1.7 inhabitant, for a total surface of 4,077 square kilometres. These numbers are sufficient to understand that there is very limited space for new constructions, both for environmental reasons connected to the conservation of the territory and for economic reasons (little demand). Only the builders able to provide excellent solutions for the conversion of the already existing buildings will survive in the market.  On the other hand, the renovation works have brought in the past few years to building companies a turnover twice that deriving from the construction of new buildings (46 billion euro against 20 in 2017 according to National Builders’ Association).

Under the Dome

In Milan, over 28 thousand new houses have been registered in the last ten years, over 2 million 700 thousand Sq m surface. There aren’t any rural ghost houses here, a good share of this increase is due to the conversion into residential of laboratories, shops, and offices. A very interesting fact about offices is that their number has decreased over the ten years of more than 1,300 units, not because they have been demolished, they have been simply converted for other purposes.

Another reason is the new classification system of properties. The luxury houses have increased (class A1), but the increase is mostly due to Porta Nuova and CityLife.  Working-class houses (A4) and lowest range ones (A5) have decreased. Moreover, in the most exclusive areas of the old town, the systematic revision of the properties has just been completed, with the consequent change of category and class. Despite this, over 62% of the houses have been classified as middle range and falling in the A3 category. The total surface of the residential properties in Milan totals 70 Sq km in a territory of 180 Sq Km.

The record

The city that registered the highest number of new registration is Rome, with over 100 thousand new houses on a surface of over 8.7 million Sq metres. It’s followed by Milan and Naples.

Curious fact: houses in Italy measure on average 116.9 Sq metres, in Milan this number drops to 88.2 and in Rome to 102.6.

 

Source: L’Economia

Translator: Cristina Ambrosi

The zero waste skyscraper that uses renewable energy

 

The new Pelli project is starting in Porta Nuova. Next month the old Inps headquarters will be demolished, then the construction works will last 2 years. Tall as the Unicredit tower and with photovoltaic panels on 5 thousand Sq m of its surface.

It will be an autonomous building with energy originated for two-thirds from renewable sources. And it will be the first in the city built cradle to cradle (CEC), one of the latest construction philosophies that eliminates waste. The construction site in Porta Nuova is opening this autumn, the building will replace the former Inps headquarters in Via Melchiorre Gioia. It will be even more innovative than the Unicredit tower, also signed by César Pelli, very environment-conscious as well. Also in the name of environmental awareness, there has been recently the collective planting of the seeds in the fields that will become the Library of Trees.

Over two thousand citizens took part in the event, as a way to get them more involved in the project. The event was organized by the Catella Foundation in the future public park of Porta Nuova, it will be completed by spring of next year and will open in summer. It will have 450 trees of 19 different species and 90 thousand plants among bushes, hedges, vines, and ornamental and garden plants. The park is signed by  Petra Blaisse and Piet Oudolf and it will not be the last intervention for the transformation process of the area. Then it will be the turn of the building Gioia 22 by Coima sgr, for a cost of 75 million and destined entirely to offices. The works to get rid of asbestos in the 18 storeys building built a half century ago and left empty for five years have finished. The construction site will open in October to get ready for the demolition. Then the construction will start with the new year. The works will last 2 years and the skyscraper will be roughly as high as the Unicredit tower with its 31 floors. Very sustainable. The building will have triple window glasses to protect and isolate and 5 thousand Sq m of the surface will be covered by photovoltaic panels to contribute to the energetic requirements. Groundwater will be used to condition the air inside the building. The lighting system will be entirely led operated. Besides, to promote eco-friendly mobility, bicycle parking spaces and changing rooms with showers will be provided to the office workers. Finally, the zero waste philosophy will be applied in order to implement a circular process where the same material is not only collected but also re-used for the same purpose. In this way, the consumption of natural resources, more and more precious these days, will happen only once.

 

Source: La Repubblica

Translator: Cristina Ambrosi

Cassa Centrale to transfer NPLs for 500 million by the end of the year

 

Cassa Centrale Banca is planning to complete by the end of the year the transfer of the 500 million NPL portfolio.

It was announced by the General Director Mario Sartori which is intending to sign the closing in the next months.

“We’re currently in the process to receive the offers – he stated – and we have received 5-7 of them from national and international players so far. We’ve been working on NPL transfers for years, both direct and through securitisation. This is our seventh operation, for a total credit limit of about 2 billion”.

 

Source: http://www.monitorisparmio.it/cassa-centrale-entro-fine-anno-cessione-npl-per-500-mln_20179211446

Translator: Cristina Ambrosi