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The Naples residential market has restarted driven by short-term rentals in the old town

09 August, Il Sole 24 Ore

The demand for houses is dynamic, especially concerning the central areas which have seen the return of private investors. For the last two years, they have focused on a new segment: tourist rentals and holiday houses to rent with the “Airbnb model”. The phenomenon has characterised the Naples residential market in the first seven months of the year.

But we must not forget the other essential element that has been supported the market, as stressed by Di Troia, real estate agent for Re/Max: “Prices have stabilised in the prime areas of the city, they’re continued falling while in more difficult neighbourhoods”. The only exception is the properties destined for tourist rentals which focuses on high-quality properties with specific characteristics.

Therefore, what are the properties that sell well in Naples? The dramatic decrease of selling prices registered in the last ten years (30-40% less, 50% in some places, in comparison with the values before the recession) highlighted the convenience of investments for rental. Besides, the demand from the tourism sector has grown. The investors in this type of assets look at one- or two-bedroom apartments with a maximum budget of 150 thousand euro for prime properties, 100-120 thousand for less appealing areas such as Sanità or Tribunali, or on the outskirts like Carlo III and Capodimonte.

The purchases for main homes by families are comprised in the 150-thousand-euro price range (2-3 bedrooms and about 90 Sq m), reaching 300 thousand in the prime locations such as Vomero and Posillipo. The signals coming from the market are confirmed by the numbers regarding mortgages reported by Facile.it in the last six months. The average amount requested is 126,582 euro to purchase a property costing on average 220,723 euro, while the average loan issued doesn’t exceed 117,911 euro.

Finally, the time to sell a property has slightly reduced, going from 8 to 7.8 months. Therefore, the difference with the average of 3-5 months reported in 2009 is decreasing, as well as the discount is reducing, currently set at 16%.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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