Property prices in Naples continue decreasing

26 October, Il Mattino

Also for the first half of 2018, the Naples property market confirms the trend started a couple of years ago. The price trend and the transaction trend continue following two different paths. Despite the total number of transactions, prices aren’t growing. Property prices have been decreasing by 1.2% throughout the province of Naples. The figures are taken from the biannual report of the Naples Property Stock Exchange, and it was presented today at the Chamber of Commerce.

As explained in the report, the properties owned by public authorities and unsold houses of low quality impacted the result. Renovated properties have performed better than those to be renewed. This countertrend is due to the tax reliefs, and it improves the quality of the real estate offer. The biggest share of sales has been recorded for properties included in the price range between 250,00 and 350,000 euro. The favourite property is the two-bedroom apartment including two bathrooms and a kitchen. Bigger apartments are difficult to sell, and their value will probably decrease within the years. The average time to sell a property has not changed, and it’s comprised between 3 and 6 months. This time is calculated from the time when the property is advertised to the time of the preliminary contract. There is concern for obsolete buildings made of reinforced concrete which were still considered recent construction a couple of years ago. The collapse of the Morandi bridge in Genoa called the attention on the inevitable degradation of construction in reinforced concrete. As a result, it’s still not sure which way to take now, whether to wait or to requalify. Rental prices are steady with a -0.7% variation, while other parts of the city reported a -0.9%.

The positive trend of the Naples property market can also be seen in the non-residential segments. The figures from the Revenue Agency show a positive performance. Even a market that has been stuck for a long time such as shops recorded a 5.4% growth in the first part of the year. Warehouses are growing too, registering a 1.3%. Transactions for shops and workshops have significantly increased, even though the growth has slowed down compared to the previous quarters, while transactions for depots and warehouses have recorded a 10.7% increase, consolidating the trend of the last few months. This trend shows the emerging interest in this type of properties in the south of the country.

On the contrary, in the northern and central Italy, there is little interest for shops. Industrial properties reported a more modest growth (+1.3%), as the market is growing at a slower pace in comparison with the previous quarters. Agricultural properties registered a 4.2% decrease in transactions compared to the +3% reported at the beginning of the year. No good news concerning prices. These have not changed in the majority of cases, while rates for corporate properties have decreased.

Chiaia is still the area with the highest prices, with no variation from the previous semester. A house in Via Caracciolo, Piazza dei Martiri or Via Calabritto can cost up to 8,100 euro/Sq m. Rent prices also have not changed, and they set at 14 euro/Sq m. Rates in the area between Via Bruno and Via Caravaggio have decreased by 9.52%, having gone from 4,200 euro/Sq m at the beginning of the year to 3,800 euro/Sq m at the end (10 euro/Sq  m for rentals). The fall of prices hasn’t spared even Posillipo. In the area around Sermoneta, the average prices are set at 6,500 euro/Sq m, one hundred euro less than the previous semester.  Between Via Manzoni and Piazza San Luigi, prices are comprised between 4,900 and 5,100 euro/Sq m.

For what concerns shops, prices for prime properties have not changed, and they remain very high. A shop in Via Dei Mille, Filangieri and Chiaia costs up to 21 thousand euro/Sq m, 120 euro/Sq m to rent. Prices in Via Caracciolo, Calabritto and Chiaia are slightly lower, set around 18 thousand euro/Sq m and 90 euro/Sq m for rentals. Prices rise in Via Partenope with 23 thousand euro/Sq m (110 euro/Sq m for rents), and they reach 24 thousand euro/Sq m (120 euro/Sq m) in Via Toledo which has remained stable compared to the second half of 2017. Corso Umberto I has slightly decreased, and it’s quite affordable. Here, prices are comprised between 3,200 and 3,800 euro/Sq m, but neither this area recorded a positive variation of prices. Prices are also dropping in Piazza Garibaldi with maximum prices amounting to 2,900 euro/Sq m and rents set at 8 euro/Sq m.

Finally, a house in the area around the Chamber of Commerce can cost up to 4 thousand euro/Sq m (10 euro/Sq m to rent). Paradoxically, it costs more buying a garage, considering that prices can reach 5 thousand euro/Sq m.

Source: Il Mattino

Translator: Cristina Ambrosi

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