(Visited 33 times, 1 visits today)
(Visited 33 times, 1 visits today)

The property market is recovering and waiting for the PIRs (saving individual plans) investments

29 October, La Gazzetta del Mezzogiorno

As in most of the Italian cities, also in Bari sales are increasing but prices continue to go down, even if the trend is stable. A trend that makes real estate the king of investments. Especially for what concerns the first house (for young couples primarily and thanks to the tax relief), but also for rental, considered the increase of rents and the growing demand from out of town students which is currently not met by universities.

In the first part of 2017, according to Tecnocasa, Bari registered a good trend in terms of sales in the centre in neighbourhoods such as Murat-Libertà and Borgo Antico. This latter has reported investments for touristic purposes too. The house sales near universities to rent to students are also interesting, especially around the polyclinic, with rents from 200 to 250 euro. The favourite property to buy for rental is the three-room apartment. According to Immobiliare.it, the portal serving many real estate agencies, last September 8.30 euro per Sq m were requested for rented residential properties, with a 3.08% increase over the year.

Rents in Bari go from 290 euro for a one-room apartment to 500 for a three-room apartment, passing through 400 euro for a two-room apartment. The average increase is of 2% in one year, aligned with the general trend in the other Italian cities. From all the types of properties (from one- to three-room apartments) finally comes a positive signal. The highest prices have been registered in Milan and Rome (with the tendency to rise), while Turin and Genoa are more affordable, and lower than the prices in Bari.

In any case, as the figures show, the requests focus on apartments on good conditions, with regular contract (with regulated lease and flat tax), and adequately furnished (especially for what concerns students and workers from out of town). The reason for the search for an apartment to rent is quite homogenous: 60% looks for the main house, 36.6% for work reasons, and 3.4% for studies.

It’s still left to see how this positive trend registered especially in the north of the country will influence the new regulation regarding the extension of PIRs (saving individual plans) to real estate companies. A new input of assets that will be vital for a sector that is recovering. The news, so far, caused the securities of the sector to rise in Piazza Affari. The news is included in a positive scenario for the Italian real estate that is going to close 2017 with volumes of over 9 billion euro against the 5 billion of a couple of years ago, thanks also to the current sales trend.

“Assuming that PIRs will be able to invest also in real estate starting from 2018, we estimate to collect in the first year between 500 and 800 million euro – explains Mario Breglia, Scenari Immobiliari president -. What slows down the growth is the little number of listed companies and the necessary time to arrange an adequate offer from small- and medium-sized companies with the requisites. In the next years, the collection might even double, because we’re expecting an improvement of real estate”.

Source: La Gazzetta del Mezzogiorno

Translator: Cristina Ambrosi

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