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Above average growth of property prices in Naples

03 December, Il Sole 24 Ore

The third South Forum organised by the Cdp and Scenari Immobiliari that has taken place today in Naples had as the main focus this city, as it represents a vast area where to invest. The new driver for global growth is indeed the development of cities which have a great potential in Italy.

Scenari Immobiliari president Mario Breglia said that “Naples is an economic centre. Although the city is burdened by urban and cultural restrictions, it’s still the third market in Southern Europe and the third in Italy. If we also consider the external areas, there are about thirty areas to develop, starting from Bagnoli (whose requalification has never started), for total investments worth three billion euro for the next ten years”.

According to Scenari Immobiliari, property transactions in Naples had better resisted the real estate crisis than the rest of the region and the nation. This particular trend started in 2010 when the city showed greater resilience to the contraction of property transactions registered on a yearly basis during the first three years of the economic recession. On the other hand, the crisis hit rather hardly the areas around the city. Between 2004 and 2013, in Campania and southern Italy, property sales were halved and have managed to recover only by 15% so far.

As the memo reads, “today, the average selling prices in Naples are slightly above the values recorded in 2000, while prices have decreased by 20% in Campania and southern Italy”.

7,780 transactions were concluded in 2017 (33,900 transactions in Campania), while in 2018 sales increased along with the turnover, which is meant to reach 990 million euro by the end of the year. The absorption rate of the residential market has shown some signs of growth, having gone from 76% to 81.1% in the last year.

Which areas have reported the best price performances? In the last five years, the best results have been recorded by the semi-central areas: via Medina-via Cristoforo Colombo-Porto (+14.7%), Mater Dei-Ruggiero (+12.5%) and Avvocata-S. Rosa (+11.5%). According to the memo, “Piazza Amedea has been the best performing among the central zones, with an increase of average prices per square metre equal to 9.2%”.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi