24 June, La Gazzetta del Mezzogiorno
Bari leads the national chart of transactions for the first quarter of 2018 with a +13.1%, way more than the national average of 4.3%, having this slowed down from last year. Sales have been 777 against the 687 of the first quarter of 2017. The Bari property market is in good shape, to the point that it made up for the fewer transactions completed in 2017 in comparison with the national average. It might be the signal of a positive economic phase, thanks to the growth of tourism that has favoured the investments, especially in modern hotels, as it’s happening in Florence and Rome.
Tourism might also be the reason for the extraordinary growth of the Naples market, which comes second with +11.8% (1,855 sales against the 1,659 of the same period of 2017), according to Tecnocasa based on the data gathered by the Revenue Agency.
However, the growth reported at the beginning of 2018 has been influenced by the trend of the previous months. In fact, that might be the only explanation for the disappointing performance registered by Milan, with only a 0.9% increase, and 5,496 sales against the 5,447 of the same quarter of 2017. The Milan property market is thriving nevertheless. We have to keep in mind that a slowdown can follow a phase of steady growth and conversely. On the other hand, if we exclude Bari and Naples, the transactions have reduced in Rome (-1.19%), Florence (-1.9%), Genoa, Bologna, and Verona. Rome and Bologna confirm the negative trend also reported in the last quarter of 2017. Palermo is recovering (+1.7%), after a negative performance in the fourth quarter. Perhaps, thanks to tourism?
Therefore, the recession doesn’t concern the number of transactions, thanks to a 4.3% growth on average. However, to leave the crisis behind, prices have also to improve. They seem to be going toward stability, but they’re still decreasing in some cities, even though by very little. Prices are rising only in the main cities, especially in the prime areas. This trend doesn’t concern dated properties, despite the tax reliefs granted for the renovation works.
It’s not possible to monitor the property market trend for the touristic sector in the first quarter of 2018. At present, it’s only possible to assume that there is a high demand for holiday houses for rent in Puglia and Basilicata. While for what concerns sales, we must consider the trend reported in the second part of 2017 by Tecnocasa, when prices were still decreasing. “The figures vary a lot: -1.1% for beach destinations, +0.2% for lake ones, and -1.5% for mountain. Since 2008, beach destinations have lost 39.6% of their value, lake ones 28.3% and mountain 31.7%.
Sales for holiday houses have increased by 6.2% and investments for rental by 18.5%, even though there is now a growing interest towards buying a property. Prices have been decreasing since the second part of 2017. The regions that reported a slight recovery are Veneto (+2.7%) and Sicily (+0.9%). Campania, Basilicata and Molise are stable. Negative trend for Emilia-Romagna (-0.2%), Puglia (-0.8%), and Sardinia (-0.4%). Foreign investors confirm their interest in properties in Italy, especially in Campania, Sicily, Liguria, and Puglia between Polignano, Valle d’Itria and Salento, ideally with a sea view.
Source: La Gazzetta del Mezzogiorno
Translator: Cristina Ambrosi