2 October 2017
The performance of the real estate market continues to excite the operators that are seeing good numbers for the current year.
According to the latest figures from the Revenue Office, it was reported a recovery of purchases during the second quarter of 3.8% compared to the same period of last year. This result signals a +6% in the statement for the first 6 months with a consequent increase in the big cities, except for -0.5% in Bologna.
The provinces with the highest growth are once again Milan (+8.3%) and Rome (+7%), the trend also favours the reduction of the times to close a deal. Buyers find an ally in the low rates of mortgages. The decrease in the number of mortgage loan applications is due to the natural depletion of subrogation that has occupied a good share of the market in the past few years.
A survey by Corriere Economia has found out the areas of the eight biggest cities in Italy where sales are particularly dynamic. In Milan, the best performance was recorded by the Ortles-Spadolini-Bazzi area, a territory that has developed thanks to the requalification of the former Iveco plant and to the recent Symbiosis project by Beni Stabili. There will be further improvements in the future thanks to the reconversion of the Porta Romana train station. The southern part of the city will benefit from the energetic requalification of some apartment buildings and public buildings through the use of groundwater and the extension of the car and bike sharing facilities with new stations.
In Rome, the best result was recorded by Cinecittà Est, an almost suburban area built in the 70es which is currently undergoing an urban intervention process to improve it. Then there is Spina 3 in Turin, the most extended post-industrial requalification project of the city.
According to the experts, the market will consolidate in 2018, but there are two factors that might influence negatively on the recovery: taxation, which curbs purchases for investment, and the low returns, for 40% of the buyers these do not exceed 1,800 euro per month.
For what concerns prices, the research carried out by Tecnocasa shows that prices have finally stopped to drop. Explains Fabiana Megliola, responsible for the Research Department: “Prices in the big cities have fallen in the first half of the year only by 0.4%. This is the most contained negative variation since the crisis started and it makes us believe that stability and recovery of prices are close”. The big provinces have even seen some positive variations, like Bologna (+1.1%), Milan (+1.0%), Naples (+0.7%), and Verona (+0.5%), while Rome (-0.7%) and Genoa (-3%) are still falling.
The analysis by Corriere Economia regarding the last three years shows that in Turin there are only three neighbourhoods with positive figures (all medium-high level), with Corso Moncalieri reporting the highest variation with +14.3%. Naples has been one of the most impacted cities by the price crisis, except for the area of Fuorigrotta. Price plummeted for more than 30% not only in Sanità and in Pianura, but also in the most prestigious parts of the province such as Posillipo. Whereas Genoa registered only negative figures, with Voltri reporting only -6.3% and Pegli over 30%. Finally, in Florence, the centre has registered a good performance with +16.8% thanks especially to the demand of houses to be converted into touristic residences.
Talking about tourism, the market in tourist destinations is growing. In this segment, prices are continuing to drop due to the excess of demand and the weight of taxation and management costs that push landlords to sell. According to the Fimaa Nomisma Observatory, prices have fallen by 2.5% on yearly basis with the worst performance registered in Abruzzo with -6%. Reductions have been reported also in the most popular destinations like Forte dei Marmi (-4.4%), Santa Margherita Ligure (-4.3%), Sorrento (-4%), and Madonna di Campiglio (-3.4%).
For whom might be interested in buying a house, it’s possible to make a simulation on MutuiOnline.it to fund part of the expense. Supposing a customer from Agrigento who wants to apply for a loan of 145 thousand euro ( the value of the house is 300,000 euro and the repayment schedule is 20 years), the most convenient option with a fixed rate is from Credem. The monthly instalment is 639.21 euro with a 0.57% rate and an annual percentage rate of 1.06%. The expenses are arrangement fees for 1,450 euro and appraisals for 280 euro. The maximum loan-to-value percentage is equal to 50% of the appraisal value carried out by professionals referred by the bank.
Translator: Cristina Ambrosi