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Real estate: the market is growing slowly

01 January, Investire

Europe: good performance of France and Germany

The first five European countries reported positive results concerning real estate revenues, with a sharp growth of France and Germany, followed by Spain and the UK, this latter registering an 8.7% increase from 2017. Italy is distanced by over three percentage points, having grown by 5.3% in 2018 and an even smaller growth (2%) is expected in 2019. Germany and Spain will continue to consistently grow in 2019, with increases above 8%, while France and the UK will proceed at a slower pace (+7%).

Milan is still the primary target in Italy

Milan is still the preferred marketplace in Italy. The residential market trend reported positive results in 2018, and it’s expected to achieve 36 thousand transactions in 2019, corresponding to an 8.4% increase. For the first time in the last ten years, the yearly revenue growth (over 8,7%) was higher than the number of transactions, thanks to the consolidation of the increase of property prices in semi-central areas of the city.

The revenue for the residential segment was set at 10.6 billion euro at the end of 2018, reporting the best performance of the last decade. The increase in the average prices in all the main cities in the country encouraged to put new properties on the market. The offer is expected to achieve 42 thousand units by the end of 2018, reporting a 7.7% increase from 2017.

 The commercial sector is at a standstill

The demand focused on a limited number of high-quality opportunities and located in specific areas, while there is no interest in assets elsewhere. Milan and Rome are the main poles, while assets in the largest provincial capitals are also evaluated, even though in more limited numbers. Property and rent prices have slightly increased.

Source: Investire

Translator: Cristina Ambrosi