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Residential market: transactions are rising, but prices are still reducing

11 September, Immobiliare.it

The positive trend of transactions in the Italian property market also continued in the first quarter of 2018, although the growth is not supported by the recovery of prices.

According to the latest 2018 Residential Real Estate Report by OMI in collaboration with Abi, the number of transactions has grown for a total of 176,687 notary deeds. These positive results have concerned both the residential market (+0.5%) and the commercial one (+1.3%).

Transactions up, prices down

Compared to the previous quarter, the results are positive. While real estate transactions have increased by 4.2%, sales by 0.5% and mortgages and house loans by 1.5%, the same is not true for property prices.

According to the figures recently published by Istat, the amount necessary to buy a property in the first quarter of the year has reduced by 0.3%. But OMI and Abi say there’s nothing to worry about. The trend, in fact, is supposed to make a U-turn in 2020.

Two factors can explain the negative trend of house prices. One is that the offer exceeds the demand; hence prices must be competitive.  Moreover, the Italian economy is not expected to grow further in 2018; therefore property prices must adequate to buyers’ needs.

Source: Immobiliare.it

Translator: Cristina Ambrosi

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