Month: March 2020

Tecnocasa: prices of residential properties are expected to decrease further

30 March, Il Sole 24 Ore

All the experts agree that coronavirus will heavily impact residential transactions. Tecnocasa forecasts a further decrease in price trends. Investments in holiday homes will likely reduce, although they might be repurposed as traditionally rented properties. The overall uncertainty of the economy prevents households from making important investments such as buying a house. For this reason, banks will have a crucial role by issuing credit once the pandemic is over.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Intrum stops the operations for the acquisition of Cerved Credit Management

25 March, Credit Village

After having come to the due diligence phase of the negotiations, Intrum suspended the operation for the acquisition of Cerved’s credit management business unit, which would have made of the Swedish company the biggest servicer in Italy. Following the coronavirus outbreak and the inevitable consequences on the economy, Intrum decided to reduce its NPL investments.

Source: Credit Village

Translator: Cristina Ambrosi

NPL: 491 transactions in 2019 for a total of 46.3 billion GBV

26 March, Credit Village

Credit Village reports that the NPL transactions completed in 2019 were 491, amounting to 46.3 billion euro of GBV. Of these transactions, 333 were carried out on the primary market, while 158 on the secondary market, 54 of these through an SPV.

Nine transactions concerned portfolios for over 1 billion euro GBV, although the transactions were primarily focused on portfolios between 50 and 10 million or below 10 million euro (respectively 236 and 184).

The most active investors were Illimity and Hoist, with 20 transactions each. Concerning servicers, 78.2% of the NPLs are managed by Amco, Aquileia Capital Servicer, Cerved Credit Management, Credito Fondiario, DoValue, Guber, Hoist, Ifis Npl, Neprix and Prelios.

Source: Credit Village

Translator: Cristina Ambrosi

 

Nomisma: residential market down by 118thousand transactions in 2020

25 March, Il Sole 24 Ore

Nomisma forecasts that the impact of coronavirus on the Italian real estate market will last for several months, resulting in a further decline in prices. The context before the pandemic was already fragile, although the weak demand was balanced by the investment component. Concerning the future, incentives to the demand and investments from banks and The Government will be vital. According to an optimistic outlook, there might be a reduction in residential transactions equal to 50thousand, or 118thousand in the worst-case scenario. Prices will likely decrease by 1.3%-1.4% in 2020-2021.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

World Capital: the logistics sector is reacting well to the Covid-19 emergency and continues growing

24 March, Il Sole 24 Ore

According to World Capital, logistics is holding well the impact of Coronavirus, especially for what concerns distribution hubs, the pharmaceutical segment and e-commerce. This latter saw the transaction volume increasing by 17% from the start of the pandemic. Supply chains registered growth in the sale of parapharmaceutical products (+148%) and non-perishable foods (+56.7%).

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Residential market: decline in transactions, more convenient mortgages

24 March, Italia Oggi

Due to the coronavirus emergency, residential transactions reported a decline everywhere in Italy. In Lombardy, transactions in the first two months of 2020 decreased by 7% compared to the same period of the previous and are expected to decline even further in March according to Scenari Immobiliari. However, there is still a steady demand for houses, and the market might rebound in the second part of the year. While waiting for the market to recoup, central banks decided to act on interest rates in order to sustain the economy, making mortgages more convenient than ever.

Source: Italia Oggi

Translator: Cristina Ambrosi

 

Aviva Investors: Coronavirus will block the growth of real estate in Italy

23 March, Il Sole 24 Ore

Aviva Investors reports that it’s reasonable to expect fewer transactions in the upcoming months, although the impact that Coronavirus will have on real estate is not clear yet. Meanwhile, liquidity and credit risk must be carefully monitored.

Shops are one of the most impacted sectors. The survival of retail will depend on Government support. Being strictly connected to tourism, hospitality is also likely to face challenges as the pandemic goes on.

Logistics benefits from e-commerce. Although the sector might have been impacted by the disruption in the supply chain and the lack of global workforce, it’s also true that the market has reported a rise in online purchases during the quarantine.

Concerning student housing, the occupancy rate will be under pressure for the 2020-2021 academic year since many international students might decide to not come to Italy to study.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Cbre: Coronavirus will affect real estate only in the short term

17 March, Il Sole 24 Ore

In its latest report, Cbre analyses the effect of coronavirus on the EMEA real estate market. According to Cbre, the impact will be only in the short-term, and, since investments tend to be slower in the first quarter, the market will have the chance to recoup later in the year, reducing the negative impact.

While the office segment doesn’t seem to have been significantly affected so far, the pandemic might have severe consequences on the sectors which are strictly connected with tourism, such as hospitality and high-street retail. The possible closure of factories might impact logistics. On the other hand, the sector may benefit from the rise of e-commerce.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Coronavirus: construction company Colombo closed 15 sites across Italy

16 March, Il Sole 24 Ore

Colombo Costruzioni decided to close all its 15 construction sites across Italy. The company from Lombardy developed iconic buildings such as the Allianz tower and the vertical forest in Milan. Colombo decided to stop its activities due to the operational impossibility to attain to the health and safety prescriptions required by the Government to contrast the pandemic, as the company operates constructions sites of over 3,000 people.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

There are shopping centres for 6 billion currently on the market

15 March, Il Sole 24 Ore

Cncc (the Italian shopping centre association) estimates that there are shopping centres for 6 billion euro currently unsold due to the effects of the coronavirus and that are likely to remain unsold for the upcoming months. Cncc demands adequate measures to protect the retail industry, which accounts for 4% of the domestic GDP and employs 587,000 people.

The consumption slump goes together with the halt of any investment activity in shopping centres. However, some forecasts that the sector will rebound as soon as the situation goes back to normal.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi