14 October, Milano Finanza
After ten years of bad results and 3.8 billion burnt, Nomisma-Assoimmobiliare thinks that the market in Rome is back on track, with prices and sales rising again. And funds and companies are back.
When you reach the bottom, you may continue digging. Not in the case of Rome with real estate. After ten years, the market in the capital is getting back on its feet with some difficulty, thanks to the recovery of sales that have led to a tepid stabilisation of prices. The operators have been long waiting for this moment, officialised in the past days with the event “The great beauty of real estate” where local government institutions and international as well as Italian companies gathered to identify a strategy for the definitive recovery.
Looking at the figures included in the Nomisma-Assoimmobiliare survey just published, if the recovery is true, it will start small, considering the losses of the last ten years. In fact, from 2006 to 2016, the turnover of the sector went from 12.5 to 8.7 billion euro, losing 3.8. A 30% fall in a relatively short period that smashed the market, residential as well as commercial, generally considered a safe port for investments. Looking at the sales, after the slump of 2012-2013, when the closed deals fell to 25 thousand units, the number of transactions has started rising again, reaching nearly 35 thousand operations in 2016.
The forecasts for the next two years speak about an additional growth of the transactions. The recovery has concerned also prices. After the peak of 2006-2007, the average cost per square metre has touched the bottom in 2014-2015, reaching 3 thousand euro. In the last two years, the trend has stabilised, suggesting an awakening. “Rome is restarting, investments are growing, especially by companies and property funds”, stressed Assoimmobiliare General Director, Paolo Crisafi, referring to the interest in investing in Rome by societies and funds.
In 2016, the investments in Rome by real estate companies have risen by 34% compared to 2015, while those by funds by 13%. A recovery is “desirable in order to attract capitals, both national and international, essential to launch requalification projects”. At this point, there are all the conditions for a recovery.
Source: Milano Finanza (by Gianluca Zapponini)
Translator: Cristina Ambrosi