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Signs of recovery of the market all over Italy, but not in Bari

04 December, Gazzetta del Mezzogiorno

The sales are growing in numbers in the property market, but prices aren’t. The doubts on the recovery of the sector are explained by the experts that took part in the international meeting “Quo Vadis, casa?”, organised by the portal for real estate ads Idealista. This uncertainty is confirmed by the companies operating in the sector which expressed in a survey mixed feelings about the recovery in a near future. But not in general: many people surveyed have stressed the will of their clients to buy the first house together with its impossibility due to financial reasons, while others are avoiding investing in real estate due to the heavy taxation on properties.

This is the confirmation, therefore, of how the residential market is going through a phase that cannot be called of full recovery, but only of lower prices compared to the past years and of easier access to mortgages. But this doesn’t consider the difficult financial situation of many families and the lack of purchases for investment.

The event showed that the recovery is threatened by the bad loans secured by properties within banks. “The deregulated input in the market of properties put as guarantee of defaulting credits is a threat for the devaluation of properties. With the possibility for the banks to put on auction said properties, we’ll have a massive input of new supply that will contribute in devaluating the other properties and causing in this way the demand to decrease”, as it was observed.

Moreover, the same effect is obtained by the excessive taxation on properties, that “exceeded the threshold since 2011 in a situation of inefficient administration that can only increase this climate of uncertainty and instability, with a destructive effect on investors’ trust”.

Another sign of the recovery of real estate in Italy is the reduction of the average selling times, from the beginning of a negotiation to its conclusion and the consequent deed. In fact, in Italy, this average has gone in one year from 159 to 141 days. This is the sign that the desire to buy a house has grown as well as the possibility to do it.

Considering the reduction of selling times showed by Tecnocasa suggesting a recovery, it seems like the market in Bari is lazier than other parts of Italy. In fact, the city is at the last place in the chart of the main Italian cities. Times are stuck at 189 days, with a variation of 10%, more or less, depending on the area.

At the regional level of Puglia, the market is more dynamic in the provinces of Bari (167 days), Brindisi and Andria (126 days), Foggia (160 days), and Lecce (175 days).  The market is slower in the provinces of Barletta and Trani (both set around 198). Taranto is around the same level of Bari. These results depend also on the prices on the market: the lower they are, the easier is to buy (consequently in shorter times). However, this factor explains the long times in Bari but not those in Taranto, where the real estate market is penalised by some environmental issues such as Ilva.

Source: Gazzetta del Mezzogiorno

Translator: Cristina Ambrosi

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