Genoa, also rich neighbourhoods are in difficulty

10 April, Il Giornale

The reduction is less evident, but it doesn’t seem to stop. Property prices continue to drop, according to research by Tecnocasa based on the figures concerning the property market in Genoa. Also in the second part of 2017, apartment prices fell by 3.8%, reducing the contraction to 6.7% on a yearly basis. Considering that prices have been plummeting for the last 10 years, the values of properties should have been close to zero by now. However, the fall in prices is a positive thing for the market that has recently resumed registering transactions. Who sells has clearly lowered the expectations, while who looks for a house has now a broader choice.

It’s easier now for demand and offer to meet. As a result, 2017 reported 6,838 transactions, with a 3.3% increase compared to the previous year. The performance is even better in percentage points, +10.2%, concerning transactions concluded in the Province of Genoa, city excluded, where transactions were 3,400 with a price reduction equal to 3.8%.

What is surprising is the distribution of this price reduction. The real estate crisis hit unexpectedly the rich neighbourhoods that weren’t previously impacted by the price reductions. Perhaps, the property owners didn’t have much urgency to sell and preferred to wait for better times rather than lowering the requested price. The expected countertrend didn’t happen; hence, the property owners had given up. In the Quarto and Quinto areas, for instance, prices have fallen by 7.6%, while Cornigliano and Sampierdarena have resisted better, maintaining their values stable in the second of 2017.

The increased offer of properties on the market made possible for buyers to have a better choice according to their necessities. According to Tecnocasa, considering the requests received, “the most sought-after property is the three-bedroom apartment, representing 46.5% of the total transactions, while the budget is below 119 thousand euro for 49.1% of the buyers”. Tecnocasa in its report takes into consideration also the conditions of the properties on the market. “the reduction of values is partly imputable to the quality of the properties on offer. Many of them, in fact, require renovation works. What saves such properties is the presence of external spaces, a very popular feature, especially in the residential neighbourhoods”.

Despite the reduced prices, Nervi and Quinto have kept their high prices with most exclusive apartments valued 3,500/4,000 euro/Sq m.

Castelletto has the highest prices in the city centre. The Marassi-Molassana-San Fruttuoso area has registered a fall of prices equal to 4,0%. According to the analysts, this is due to “the many businesses that have closed down reducing the services offered in the area”.

Voltri, Pegli and Sestri have reported a fall of 3.3%. Prices in Multedo have remained steady whereas they have slightly decreased in Varenna, having lost most of the local businesses in the area. Valpocevera, Certosa and Pontedecimo have also decreased, this latter with a fall of 2.6%. Corniglianoa, Sampierdarena and Rivarolo are stable.

On the overall, the condominium expenses influence the choice. In most cases, houses are purchased thanks to a mortgage, while the average times to sell are between 6 and 8 months. The demand for apartments to rent is very high, especially from those who are currently unable to purchase a property such as young couples and workers coming from other towns.

Source: Il Giornale

Translator: Cristina Ambrosi

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