06 June, Il Giornale
There are 9.2 million families that are excluded from the property market, namely those who can’t access the financial market due to their work or income conditions, or because they are people with no family. This analysis is taken from the 11th survey on Real Estate Finance by Nomisma presented yesterday in Milan. According to the report, even though many cannot afford to buy, the families intending to buy a house have grown by 10.2% from 2017. The number of families was 2.2 million last years and is 2.6 million this year.
More in detail, 722 thousand families are already looking to buy a house (2.8%), while about 1.9 million have expressed the intention to buy soon (7.4%). Regarding the age, young people are predominant (18-34 years), although considering only those families in good financial and professional conditions with an average monthly income of 3,500 euro per family.
Purchases for investment have recovered, thanks to the growth of short-term rentals that are now 15.4% of the total and concern about 400 thousand families (they were 6.1% in 2017). Purchases of a “second house for the family” are still high despite the heavy taxation, representing 18% of the families, approximately 476 thousand families.
Construction is recovering, even though burdened by debts and interests. In the past few years, the sector has been through a deep crisis which is not entirely over. “Even though some indicators are showing some signs of growth, the whole sector is still weak”, Nomisma wrote on its report. According to the dossier, the analysis of the financial structure of the companies of the sector regarding the period 2012-2016 still show a high level of indebtedness, especially for the building construction segment. This situation is mostly due to “the interest expenses significantly impacting the gross operating margin, considering that in 2016 the financial charges absorbed over 40% of the margin”. We must also take into account the high quota of short-term debts towards banks.
Source: Il Giornale
Translator: Cristina Ambrosi