Month: March 2019

Turin office market aims at replicating Milan

27 March, Il Sole 24 Ore

Turin is “work in progress”. One example is the new skyscraper of the Region of Piedmont, whose construction was stopped between 2014 and 2017. It will be ready by 2020. The 42-storey tower will gather all the various public offices scattered around the city, freeing in this way a lot of office space which may be put on the market. Turin’s office stock is estimated around 3.6 million Sq m, although large part of it consists in obsolete assets. Prices for prime offices are around 200 euro/Sq (Milan is way over the double of such amount), returns are high and steadily set at 6.25%, while the vacancy rate is stable at 14,5%.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Rentals: record of Milan, good results in the big cities

27 March, Italia Oggi

The latest report by Immobiliare.it shows a fragmented picture of the Italian rental market. Milan follows the European trend with rent prices rose by 9% and the demand increased by 7%. The city has the highest rents in the country: a studio costs on average 750 euro a month. Big cities also show a positive trend (+3% for prices and +2% for the demand) and studio apartments costing on average 520 monthly. On the other hand, provincial cities still report a negative trend with a decrease in the demand equal to 2%. Here, the average cost of a studio is 270 euro a month.

Source: Italia Oggi

Translator: Cristina Ambrosi

Istat: property prices continued decreasing in 2018 (-0.6%)

28 March, Il Sole 24 Ore

The -0.6% decrease in property prices is mainly due to existing construction, which reported a -0.7% reduction. The current market conditions, characterised by a negative price trend and the rising number of transactions (+9.3% in the last quarter of 2018), originates from a weak demand and heavily dependent from mortgage loans combined with low inflation. Prices in Rome fell by -1.7%, while in Turin and Milan resumed growing respectively by 0.5% and 2.9%.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Unicredit ready to put on the market three secured and unsecured NPL portfolios for 2.4 billion euro in total

27 March, Bebeez

Unicredit is preparing new NPL operations. Specifically, the Roma portfolio is worth 1.4 billion euro and is composed of unsecured loans, the Matera portfolio is valued 750 million and it includes secured loans, whole the Capri portfolio consists of guaranteed NPLs for 300 million euro.

Source: Bebeez

Translator: Cristina Ambrosi

This is the right moment to invest in Milan

23 March, Milano Finanza

The market is rewarding those investors that decided to bet on Milan. A two-bedroom apartment of 60-70 Sq m bought at 400-450 thousand euro it’s now worth 850-900 thousand euro. This growth trend continues attracting foreign investors, thanks to margins higher than other international markets. For instance, those who bought a flat in Città Studi for 200 thousand euro a couple of years ago, can now re-sell it for 300 thousand.

Source: Milano Finanza

Translator: Cristina Ambrosi

Tecnocasa: where to buy a house

25 March, Corriere della Sera

Milan is far ahead of the other main Italian cities, with a 40% increase in property prices. It’s followed by Naples with a 2.4% growth, whereas Rome and Turin report a decrease respectively of 4% and 3%. However, prices in Milan are 14.3% lower than the maximum high registered ten years ago, Rome is set at -33.1%, Naples at -41.8% and Turin at -39.3%.

Source: Corriere della Sera

Translator: Cristina Ambrosi

Bnp Paribas Real Estate: Milan’s office market is growing

25 March, Corriere della Sera

The vacancy rate for offices in Milan reduced to 10.6% in 2018, thanks to the increasing demand from companies as well as the rise of pre-lets. The total office space currently available is 1.2 million Sq m, but only 24% is classified as class A, and only 2% of this is in the city centre. Last year, the market achieved its absorption record with 390 thousand Sq m occupied. Office transactions in Milan amounted to 2.1 billion euro in 2018, representing two-thirds of the total real estate investments.

Source: Corriere della Sera

Translator: Cristina Ambrosi

Porta Nuova: all the new projects of Europe’s biggest construction site

25 March, Milano Città Stato

Porta Nuova in Milan is the biggest real estate operation in Europe for a total amount of 2 billion euro.

Vertical Nest

The project is carried by UnipolSai, and it will be ready by 2021. The 23-storey building focuses on sustainability and is meant to host conference rooms, offices and a sky-restaurant with a garden and public spaces on the top floor.

Rasoio (“Razor”)

The project was left unfinished, following the bankruptcy of the Ligresti group. Now, the building will be entirely re-designed, and it will accommodate the UnipolSai Assicurazioni offices.

Corso Como Place

The former Unilever headquarter is currently being requalified by Coima Sgr to rent its spaces, with Accenture among the possible candidates. The project will be completed by 2020, recovering a total surface of 22 thousand Sq m.

The EDGE (Edifici Garibaldi Executive)

The project, which received the Leed Platinum certification, is currently in the development phase. Its completion is scheduled for 2020. The former Executive Hotel will be replaced by three buildings developing on ten floors and including external areas for 4.5 thousand Sq m.

Gioia 22

Following the demolition of the former Inps building, Coima Sgr will implement the Gioia 22 building on behalf of the sovereign fund Abu Dhabi Investment Authority.

Gioia 20

Coima Sgr also finalised the acquisition of the two municipal areas for a total of 32,208 Sq m and 78.9 million euro. The company will implement in the site two next-generation buildings by 2022.

Source: Milano Città Stato

Translator: Cristina Ambrosi

Italy first for NPLs in Europe with 153 billion

21 March, Milano Finanza

The latest EU report on banking surveillance places Italy first concerning NPL stock (153 billion euro), followed by France (130 billion), Spain (95 billion) and Greece (90 billion). In 2018, the total NPLs in the Eurozone reduced to 628 billion euro. Despite that, the level of impaired loans in the European banking system is still very high compared to the international standards, requiring further efforts to consolidate the results achieved so far and to cover the risk for pre-existing and future NPLs adequately.

Source: Milano Finanza

Translator: Cristina Ambrosi

Nomisma: slowdown of real estate in 2019

20 March, Il Sole 24 Ore

In 2019, transactions will grow at a slower pace (by 2-3% instead of 6.8% as in 2018), while prices will be set at -0.9%, not far from the values reported in 2018. Such a weak growth, according to Nomisma, is due to the high availability of mortgages and the lack of inflation. Prices and investments for corporate assets had also decreased due to the higher country risk perceived.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi