The number of sales increases but properties cost less and less
Confedelizia: thanks to Monti, the taxation on the apartments is unsustainable
We have been talking about the recovery of the real estate market for three years. A recovery related to the number of sales, certainly not the prices. With the exception of Milan with the effects of the Expo still visible (the increase of investors and tourists is noticeable even without statistics at hand), Italy is still not giving signs from that point of view.
Eurostat published yesterday the price index of the houses in the continent: in the first quarter of 2017 the prices of the houses increased by 4% in the Eurozone and by 4.5% in the Eu compared to the same period of the previous year, while compared to the previous quarter the increase was 0.4% on average in the Eurozone and of 0.7% in Eu.
Prices have increased everywhere, except for Croatia (which is not part of the Eurozone) and Italy ( the only exception in the euro area), decreasing respectively by 0.4% and 0.1%. Bad news for who is selling, with the real estate estimates that in some areas of the country have been halved compared to the golden years prior 2007. But is it good news for who is buying? Yes and no. Certainly, considering the trend of sales, the rebound duration, and the growing Gdp, the chances that we’re currently are at the lowest pick are very high. But if the investment, notoriously of long term, can’t even regain the inflation, we need to understand why before crying victory.
Confedilizia gives its explanation: the problem in Italy is the taxation on properties that has become unsustainable. “It’s impossible –writes the association – not to understand that the one to blame for this steady stream of negative figures in real estate, which places Italy at the very bottom of the list in Europe, is the self-destructive tax policy started with Monti and not corrected lately. Weighing with 50 billion euro of taxes, almost half of which of property origin, on an industry that has always been the engine of our economy is literally a suicide”.
Confedalizia, finishes the memo, “proposed to the Government a long time ago a series of measures to revert the trend. The new, discouraging, figures from Eurostat should convince it to approve them”.
The fiscal pressure, if not corrected, risks to additionally smash the industry and to make not convenient investing in real estate.
A footnote: Italy is also the only country that presented to Eurostat provisional figures. Only Greece was worse than this, not having even presented them. Perhaps Germany is not totally wrong to shake its head when talking about Italy.