29 December, La Nazione
2017 should have been the actual end of the recession and 2018 is meant to be the start of the recovery of real estate. In the meanwhile, house prices throughout 2017 in Italy have reported a decrease of 4%. The survey by Idealista on 427,561 ads in 1,204 cities confirms how the fall of the prices for old properties is not over yet.
The survey shows wide fluctuations in the house prices in the smaller cities, while bigger cities still are reporting negative values, expect for Bologna (+5.1%) and Florence (+1%), the only two cities able to turn the dynamic demand into an increase in prices. 2017 has reported prices decreasing in 85 province capitals over the 103 surveyed. Among these, there are the two-digits falls of Benevento with -18.6% and Varese with 10.1%.
Depreciations haven’t even spared big cities: Rome (-4.3%), Milan and Naples (both -3.8%). Some cities rated among the best in the terms of quality of life have registered instead positive performances; these are Trieste (+6.2%), Sondrio (3.8%) and Bolzano (2.4%). In fact, prices are positively impacted by the good level of quality of life of a city. Venice, with 4,362 euro per Sq m, is still leading the chart, followed by Florence (3,434 euro) and Bolzano (3,413 euro). While the average for Milan is 3,296 euro and 3,170 euro for Rome.
Vincenzo De Tommaso, responsible for the research centre of Tecnocasa, explains: “The market is still suffering from the offer surplus of properties with prices, quality and locations not in demand. We expect for 2018 a more homogeneous recovery with a moderate growth of prices in the cities”. The same outlook is confirmed by Fabiana Megliola from the Tecnocasa research centre, estimating transactions reaching 550-570 thousand compared to the 400 thousand of the toughest part of the recession, but well far away from the 800 thousand of ten years ago.
Concerning prices, these are going towards stabilization, except in the hinterland cities and province capitals, where prices are continuing their fall. Whereas a rise in prices of 2% is expected in the big cities.
Source: La Nazione
Translator: Cristina Ambrosi