(Visited 42 times, 1 visits today)
(Visited 42 times, 1 visits today)

Gabetti: in 2018 prices will stabilize and transactions will increase

21 March, Idealista

2017 reported a significant growth of the residential market, especially for what concerns tractions, while prices have slightly decreased. The figures are confirmed by the franchising company Gabetti, which also reports a reduction of times to sell properties. The company forecasts for 2018 an increase of transactions and the stabilization of prices. The recovery will be supported by the new regulations of the 2018 Budget. In 2017 the residential market has grown considerably. According to the Revenue Agency, 542,480 residential transactions have been concluded, 4,9% more than 2016. Concerning the offer, there is an increasing polarization between good quality properties (in terms of construction standards, energy efficiency, and location) and properties located in suburbs of little appeal whose characteristics don’t meet the demand’s requirements. For what concerns prices, according to Gabetti, the second quarter of 2017 reported an average variation around -0.3%, while Bologna (+0.5%) and Milan (+0.2%) registered a positive variation. Regarding the other cities, Naples and Florence have been substantially stable; while Palermo (-0.4%), Genoa (-0.7%), Rome and Turin (-1%) have registered further reductions. The average selling times in the big cities have been reducing, going from 6 months in 2014 to approximately 5.5 months in 2015, till 5 months in 2016. In the first quarter of 2017, the average was set at 4.8 months, it went then to 4.7 in the second quarter. However, the situation varies depending on the specific characteristics of the property and on the market price. Properties with prices aligned with the market and featuring appealing characteristics have reported selling times between 3 and 4 months. On the contrary, times have got longer for those properties placed on the market with too high prices, and they are seeing now their prices dropping. The same goes for those properties with characteristics not appealing for the demand. In 2017 the average discounts in the big cities were around 12% for old properties. Discounts tend to increase, reaching up to 10%, for properties with too high requested prices or with prices not aligned with the market.

Mortgages, according to the figures of Banca d’Italia, have increased by 0.3% in the first 9 months of 2017, for a total amount of 35.8 billion euro. The total amount issued in the first quarter has been 12.3 million euro (+11.5%), 12.8 billion in the second quarter (-3.4%), and 10.7 billion euro in the third quarter (-6.4%), compared to the same period of 2016.

For 2018 the outlook is for an increase of transactions in the first quarter, along with a stabilization of prices. Some cities such as Milan, Bologna, Naples and Florence will continue the positive price trend. The new regulations introduced with the 2018 Budget will have a positive impact on the market, thanks to the tax deductions for renovation and energy saving works, that will give an additional impulse to the sector. The incentives for purchasing properties to renovate has been extended till 31st December 2018, and it implies the possibility to deduct from taxes the expenses for the interventions as well as the expenses for the energetic requalification. There is also the incentive for anti-seismic interventions, with a tax deduction of 70% till 2021, for interventions aimed at reducing the risk level related to earthquakes. However, it will be necessary to the evaluate the impact on taxes of the reforms introduced by the new Government.

Source: Idealista

Translator: Cristina Ambrosi