12 December, Re Quadro
In the first nine months of 2018, the residential property market in the main Italian cities reported positive results (+2.3% from 2017). New houses registered the biggest growth (+9.4%), and they drove the offer (+2%), representing 12% of the residential market in 2018. This result, however, spans from 4.4% in Palermo to 25% of Milan. Moreover, property prices grew only for this segment (+1.3%), as dated houses or to be renovated closed with -0.2%. Concerning the time to sell, new properties sell quicker (4.9 months against 6.5). In big cities such as Rome and Milan, there is particular attention for customised houses, featuring innovative services such as a personal architect, a concierge, or a personal chef.
The figures are taken for the latest report by Abitare Co. The real estate broker focuses on new housing. The company analysed the market for new houses in the main Italian cities (Rome, Milan, Turin, Naples, Genoa, Florence, Bologna and Palermo).
According to Abitare Co., the most dynamic city in 2018 has been Naples, with an increase in the transactions for new houses equal to +15.2%, followed by Milan (+14.5%), Rome (+13%), Turin (+11.3%) and Bologna (+9.7%). Sales have grown, although at a more modest rate, also in Genoa (+5.5%), Florence (+3.2%) and Palermo (+2.6%).
Concerning the offer, Milan (+5.4%) and Rome (+3.2%) reported the biggest growth. The two cities also show the biggest quota of new houses on the total residential market, respectively with 25% and 16%. On the total, new houses represented 13.5% in Bologna, 12.3% in Turin, 9.7% in Florence, 8.1% in Naples, 6.5% in Genoa and 4.4% in Palermo.
The positive trend of new houses also reflects on prices, having increased on average by 1.3% from 2017, while Milan, once again the most dynamic city, reported +3.3%.
The average prices per square metre for a new property is 4,500 euro. The most expensive cities are Milan with €6,750 (+3.3% from 2017) and Rome with €6,300 (+1.2%), followed by Florence with €4,800 (+0.8%), Turin with €4,450 (+2.3%), Naples with €3,800 (+1.2%), Bologna with €3,700 (+0.7%), Genoa with €3,300 (+0.6%) and Palermo with €2,900 (+0.4%).
In comparison with dated properties, prices for new houses are by 24% higher, with peaks recorded in Palermo (28%). To sell a new house, it generally takes 4.9 months (6.5 months for a dated property). Once again, Milan is the most active with 3.7 months.
What’s the outlook for the next months? The forecasts are positive. Alessandro Ghisolfi from Abitare Co. said: “The residential real estate market for new constriction has shown a positive trend in 2018. Compared to the offer, the demand is still underrated, favouring the reduction of the time it takes to sell properties, something that would have been impossible a couple of years ago. The trend will continue being positive in 2019, although we must be cautious, considering the current economic situation”.
Source: Re Quadro
Translator: Cristina Ambrosi