09 February, La Gazzetta del Mezzogiorno
The outlook for the real estate market is positive, even though it’s still advisable to be cautious. Sales are doing well, especially for prime properties in big cities, despite the growth is not strong enough to change the price trend, still decreasing or remaining unchanged. Unlike Europe, where prices are growing by an average of 5% every year. Hence, there is the impression that sales so far have been the result of low selling prices and convenient interest rates. These two factors led to prefer purchasing (with a loan) over renting.
Bari reflects this national trend, as highlighted by Tecnocasa and Immobiliare.it. Concerning the retail and commercial sectors, after a worrying standstill due to the consumption reduction that forced many businesses to close down, we’re finally seeing a turnaround. This wasn’t really caused by the opening of new fashion stores (mostly temporary stores), rather by the opening of new pizza and fast food restaurants favoured by the attractivity of the city, thanks to the presence of offices and universities, hence catering to office workers and students.
The phenomenon of people moving to the city to work or to study has favoured not only the growth of commercial properties but also of properties in general, residential ones included. Especially in those areas of the city where there is a higher concentration of people moving from other towns. The trend makes hope for an increase in property prices up to 12%, as long as the market conditions don’t change, and the interest rates and prices remain at low levels. “Those homeowners that don’t lower their expectations will end up with their property unsold”, comments a real estate agent.
The expected increase of prices of 2% in Bari is justified by the fall of values (even by little) during 2016 and 2017, despite sales are rising (and therefore, the related demand).
To be honest, it will not happen all in one year, most likely this trend will extend also to the next one, and not in all the parts of the city. According to Tecnocasa, the most exclusive parts of the city centre will lead the growth, such as the so-called Umbertina area, or the old town between Piazza Mercadante and Via Venezia that faces on the sea, or the always very appreciated Via Sparano.
Prices will remain stable, rather than growing, in the less central neighbourhoods, especially those close to the university faculties. Properties here rent very easily, also in the form of single rooms to students, hence there is no risk to end up with a defaulting family in the property.
Whereas prices will not rise in those neighbourhoods that in the past had good potential. These are, for example, the Libertà and Madonnella areas. Here, low-income families and immigrants have recently started moving in, attracted by the low prices. This phenomenon includes also the commercial properties in the area.
Source: La Gazzetta del Mezzogiorno
Translator: Cristina Ambrosi