12 July, Corriere Torino
Buying a property in Turin can be very convenient. The average price per square metre for houses in the suburbs have dropped, as well as those for shops in the city centre. Nearly one rent every two is regulated: 10% flat coupon plus other deductions at the condition of renting at prices below the market. In its latest real estate survey, Nomisma shows a recovery of transactions and of the market in general, although the number of property sold doesn’t seem to help prices to take off.
It’s good for who buys, bad for who sells. It’s a warning signal of the attractivity of the territory. Some analysts predict a recovery of the residential market. The Turin people are back buying houses, but mostly to live there and not to invest. 74% of the transactions are for the purchase of the first house, 9% for the second house, and the remaining 17% are for investments in rentals. Prices have further reduced. The city centre and prime locations are stable, while the suburbs are still dropping. The registered reduction has been equal to 1.6%, one percentage point less than six months ago. On average, it’s possible to buy in Turin a new apartment spending 1,965 euro/Sq m, while for dated properties the price falls to 1,560 euro/Sq m and to 1,190 euro/Sq m for a property to renovate. Rents, after a slight rise (+0.3%) in the last semester of 2017, have also resumed dropping (-1.3%).
Concerning rents, 56% of the rented properties are occupied by families, while 28% are rented by students and workers, and 16% are used for temporary accommodation. 39% of the lease contracts are unregulated, 42% are regulated contracts, and the remainder is temporary accommodations. The scenario for the next months is rather weak, with property and rent prices still decreasing despite transactions will continue being stable. Prices for non-residential properties will still drop with a -2.1% yearly variation for shops and -1.8% for offices on average. For commercial properties, the variation is more accentuated if considering the whole semester (-0.8%) or the whole year (-1.4%).
Source: Corriere Torino
Translator: Cristina Ambrosi