04 October, Corriere della Sera
Tecnocasa reports two emerging trends in the Prato real estate market. The first is the increasing number of buyers from Florence, who buy properties for rental, thanks to the lower house prices compared to Florence. The other trend concerns young couples from China, who have recently gained access to the national banking system and are benefitting from the favourable mortgage rates.
Source: Corriere della Sera
Translator: Cristina Ambrosi
08 December, Il Sole 24 Ore
The positive trend of the Italian residential market is going on. According to the latest survey by the Revenue Agency, the third quarter of 2018 (generally the quietest quarter of the year due to the summer holidays) reported 130,609 sales for houses, having increased by 6.7% from the same period of 2017 (which registered 122,373 units). Basements and attics also reported positive results, with transactions increased by +9.2%, as well as parking spaces (+5.3%).
The residential market has been consistently growing since 2014. In the period between July and September 2018, smaller cites (+7.4%) and the north-east of the country (+13.4%) were the most dynamic. On the contrary, provincial capitals are stuck at a 5.5% growth.
The market in Milan has stopped (-2.4% against +4.4% in the previous quarter). In this case, the stop is due to the property prices that resumed growing. Bologna is the most active city (+23.7%), followed by Palermo (+8.5%), Genoa (+7.2%), Turin (+4.5%) and Naples (+3.6%). Finally, Rome reported 7,151 transactions (+3.4%).
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi
10 June, Corriere della Sera
Who lives near the Bocconi university must be attending the Economics courses. This is what one might think when reading the data on the Milan property market for 2017 disclosed yesterday by the Revenue Agency. Last year, in fact, the Crema-Tabacchi-Sarfatti area registered the highest increase in prices on average. The phenomenon, which was already reported by several real estate agencies, is now official since the figures are taken from the notary deeds. The increase has been equal to 4.1%. The demand is driven not only by who is moving to the area but also by who is looking for a house to rent to students. Via Solari comes second, with a 3.7% increase, with buyers betting on a revaluation once the M4 metro line will come. After all, it’s not by chance that last year sales grew considerably in other two areas covered by the blue metro line: San Vittore-Sant’Ambrogio and Argonne-Corsica.
It’s not surprising that Porta Nuova registered the highest prices, with 52 apartments sold last year, 20 less than 2016, at an average price of 11,125 euro/Sq m. Such amount is significantly higher than the price in Citylife, where 19 apartments were sold at an average of 9,450 euro/Sq m. Obviously, rates are higher for new houses: in the prime locations in the old town, the average price is around 9,250 euro (San Babila and Quadrilatero), while high-range properties can cost up to 15 thousand euro. The northern suburbs of the city is the area that registered the biggest number of sales, such as the area between Musocco and Expo. This result is likely due to the success of the Cascina Merlata project.
The figures from the Revenue Agency also provide some interesting data. For instance, Milan is where the smallest houses are sold, less than 84 Sq m on average. Prices dictate this choice. To make a comparison, the houses in the hinterland are 12 Sq m bigger, basically the size of a room. The same house in Milan costs 315,700 euro, in the province 164 thousand. In Italy, two buyers every three applied for a mortgage, in Milan one every two. On the other hand, loans are higher: over 190 thousand euro against the 126 thousand on average in the rest of the country.
Last year, 23,707 properties were sold in Milan, increasing by 8.1% on a yearly basis. The record level registered in 2006 is not that far, and the outlook for 2018 is good, depending on the economic situation. In the first quarter, sales in the city grew by 0.9%. The total revenue generated by the sale of properties was in 2017 8,425 million euro, equal to 9.4% of the total in Italy. The houses in Milan city centre, however, were only 2.3% of the total.
Source: Corriere della Sera
Translator: Cristina Ambrosi
05 June, Libero
Price of houses in Italy remain stable, even though registering a 17.1% decrease in comparison with 2008. Meanwhile, transactions have increased by 7% on a yearly basis in 2017, and by 8% in the first quarter of 2018 compared to the same period of the previous year.
The trend of mortgages has also been steady January through March and “it’ll continue to be so thanks to the improved macroeconomic situation and the low interest rates”. Whereas, the default rate “should remain on the current levels on the long-term”. The figures are included in the Fitch Ratings report on the Italian real estate and mortgage market. According to the American agency, “the competition on the Italian mortgage market remains solid, and it’s focused on diversifying the product, rather than competing on prices, as interest rates are still at their lowest and the limited demand for refinancing gives more freedom to act on the price-side”.
According to the rating agency, the volumes concerning refinancing of loans is “slowing down” by 4%.
Source: Libero
Translator: Cristina Ambrosi
31 May, Il Sole 24 Ore
The Turin residential market is dynamic, at least for what concerns transactions. The economic situation is very similar to the one that closed 2017. “The demand still reports positive figures – confirms Yari Politi, Re/Max agent – with transactions increased by approximately 5% on the last 12 months, especially in areas such as Crocetta, Cit Turn and Pozzo Strada, that are performing very well”. Demand is also good in Mirafiori, Barriera Milano, Lucento, Vanchiglia. Meanwhile, prices haven’t changed. Even though there was some slight increase for prime properties in the city centre, the remainder of the stock continues to be transacted at prices substantially unchanged from 2017.
Hence, requests are increasing, especially for three-bedroom apartments comprised between 230-350 thousand euro, or for smaller properties below 90 Sq m for 70-120 thousand euro. These latter types are also a good investment solution that has become quite popular lately, thanks to prices in the city at their lowest. While the traditional idea of renting long-term is declining in favour of buying, investors can find opportunities in the niche of short-term rentals targeting tourists. Mortgages also offer interesting solutions. According to Facile.it, the average requested amount in the last six months has been 130,045 euro, while the average amount loaned has been 128,975 euro. The average value of the property bought is 206,650 euro. To higher numbers of views of a property correspond quicker negotiations: after having reached the lowest point in 2015 with more than eight months, now the average is 7.7 months. Finally, the discount granted is set at 15%.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi
13 April, Il Sole 24 Ore
The number of applications for mortgages has reported another reduction in March (-8.4% on a yearly basis). The result brings the cumulative performance for the first quarter of the year to -8.9% compared to the same period of 2017.
However, “this contraction is more contained compared to that registered in the 3 previous quarters, having subrogations stopped their fall – reads a communication by Crif – This trend started over one year ago after the progressive reduction of the number of borrowers who found subragations convenient”.
The reduction in the number of applications is accompanied by the increase of the amount requested, which registered in the last quarter a growth of 1.7%, bringing the average value to 126,025. Also in this case, the data is impacted by the trend of subrogations, which have generally lower amounts than new mortgages. In addition, it was reported also a shift upwards for durations comprised between 16 and 30 years (+3.3%), with the contraction of the range between 10 and 15 years (-3.1% compared to 2017). The age range between 35 and 44 years is still predominant (34.5%). There is, however, an increase of application from younger people: borrowers aged between 25 and 34 years have grown by 1.2%.
“This scenario benefits from the improved economic context, with positive consequences on family budgets, also helped by prolonged low interest rates – comments Simone Capecchi, Crif Executive Director – For the future, we can expect this positive trend of loans to families to continue, favouring investments in the house, such as renovations, which were often postponed during the recession”.
Source: La Repubblica
Translator: Cristina Ambrosi
12 March, Italia Oggi
The real estate market has continued to grow for the eleventh quarter in a row. The residential market is picking up again, reporting a +6.3% for October-December 2017, after a period it had slowed down. Florence and Milan have registered the biggest increase in transactions. While Palermo, Bologna and Rome have closed the year with a negative result. These are the figures coming from the Real Estate Observatory of the Revenue Agency, also available on the website www.agenziaentrate.gov.it.
Source: Italia Oggi
Translator: Cristina Ambrosi
10 March, Monitor Immobiliare
In 2017 the residential sector in Italy has confirmed its positive trend for the third year in a row. With 550,000 transactions for residential properties concluded over the last year (5% more than 2016), the market registered a total increase of 35% compared to the post-recession years 2013-2014. The values are above the national average, even though they’re far from the peak reported in 2014 with 900,000 transactions. Residential development activities have restarted, with a countertrend between 2016 and 2017 regarding the number of new residential properties.
These are the main points of the EY report “Residential development in Italy. Challenges and opportunities in the market” which analyses the specific characteristics of the Italian residential market and its evolution over the last 60 years, highlighting opportunities and risks.
According to the survey, the residential market in Italy has a strong connection with the macroeconomic indicators, such as the GDP yearly variation (+1.5% for 2017 according to Banca d’Italia), and it’s characterised by regular cycles that repeat through time.
Five cycles have been identified from 1958 till today, each lasting 13 years on average. All the cycles show similar trends and characteristics, in particular for what concerns the relation between the property price index and the trend of transactions.
Among the internal factors, Italy is at the top of the chart in Europe for the percentage of families that live in a house they own, namely the 77.4%. The rental market is one of the smallest in Europe, even though the trend is picking up, determined by a combination of factors: the reduction of the purchasing power in real estate, the geographical disparity that has led to an internal migration towards areas of the country where there are more work opportunities, the change of consumption models that tend to prefer use over possession, and the ongoing demographic dynamics.
Marco Daviddi, EY partner and real estate leader for Italy, comments: “The existing residential stock has characteristics in terms of dimensions, construction, and energy that are far from what the market is demanding today. This explains why prices for old properties have continued to drop also in 2017, while prices for new properties are growing, driven by a demand that is getting stronger, especially in some geographical areas. After several years of general standstill of the residential developments, as shown by the little number of new hoses put on the market, with a reduction of about 80% compared to the maximum registered in 2005, the recovery of transactions has absorbed a great part of the unsold stock and we believe that, arrived at this stage, it’s time to proceed with new developments. However, the comparison between the market trends and the socio-demographic conditions suggest adopting new analysis instruments to plan and market the interventions, with an adequate financial planning that to place the product on the rental market, rather than selling it”.
Rita Neri, EY partner, advisory services marketing and digital communication leader, comments: “The communication approach for residential products must be centred on the client and his/her needs. Therefore, it must start from the initial identification of the target. A multichannel approach allows to monitor all the contact points and to reach who might be really interested in the property, making the investment in marketing and communication effective and measurable. The experience we’ve acquired in the field is aimed at establishing a dialogue with the potential buyers and at accompanying them towards the choice”.
Source: Monitor Immobiliare
Translator: Cristina Ambrosi
08 March, Corriere della Sera
Milan is the target of Italian and international millionaires wanting to buy a luxury house. The segment of luxury properties, with values over one million and a half, is a niche but it drives the sector nonetheless. “With roughly 23 thousand transactions per year, the Milan luxury market is the most dynamic and the fastest market in Italy. 5% of the operations concern mostly upscale apartments and such a percentage is growing, especially because prices are convenient compared to other places in Europe”, says Fabio Guglielmi, Ceo for Sant’Andrea (Gabetti Group) that together with Nomisma has recently published a survey on the segment. For luxury properties, selling times are reducing, as well as the gap between requested price and amount paid. “This is the sign that clients are willing to pay more, so much they yearn for a house in Milan”. There are currently 38 construction sites for upscale properties in Milan, not only in the city centre. “Seven have just started and 23 are almost finished. In the next two years, more than 300 new luxury properties will be put on the market”, adds Luca Dondi, Nomisma Ceo. “What matters is services and image. Penthouses and super penthouses with a terrace and at least three bathrooms are not enough. People want a concierge 24 h, for example. And spaces have gotten bigger: from the 185 Sq m of the first part of 2017 we’ve gone to 215”. Brera is the area most sought-after, followed by the old town and the part around Castello. For instance, new contracts have been signed in the new Horti complex, behind Porta Romana, in Residenza Litta close to Cairoli, and in the Carducci suites where an “urban villa” has been recently sold. There are fewer requests for Quadrilatero, even though prices here are steep (12 thousand euro/Sq m), despite the average 12% discounts. Costs are key: so far, they have maintained stable (with a 0.4% increase due to emerging areas such as Castello and Porta Nuova). According to Enzo Albanese, Ceo for the real estate brokers association Fimaa, a price hike is just around the corner. “The demand comes also from abroad and the offer, despite the many construction sites, risks to not satisfy all the requests. By mid-2019, prices for upscale apartments might increase up to 10%”. There is a widespread optimism, even though a certain caution still remains. According to the analysis by the portal Luxuryestate.it, Milan is at the seventh place in the world for luxury apartments, after Miami, New York, Los Angeles, Lisbon and Barcelona. Foreigners are a small portion of the buyers, and they also buy properties for rental. Investors from the Middle East are concentrated in the area around Duomo and in Porta Nuova, while British are found around Parco Sempione. Guglielmi concludes: “Prices haven’t grown. And if we look at the international market, they’re still convenient”.
Source: Corriere della Sera
Translator: Cristina Ambrosi
08 March, Milano Finanza
The recovery of prices for luxury properties in Milan and in Rome has continued also in the second part of 2017. Transactions have increased, with the consequent reduction of the average selling times and of the discount on the initial price. But more importantly, after years of contraction, prices are rising again in both cities, by +0.4% in Milan and +0.3% in Rome. This is what emerges from the analysis by Santandrea Luxury Houses together with Nomisma.
In Milan, Quadrilatero is the most expensive area: a new or a renovated property costs between 11 thousand and 13 thousand euro/Sq m, while the price for old properties to be renovated is comprised between 9 and 11 thousand euro. While Brera, Pagano and Indipendenza are the areas that registered the highest number of transactions and where prices are slightly rising. Requests concentrate on houses between 180 and 250 Sq m with a terrace, three bathrooms and concierge service. The number of construction sites is also growing: in the second semester 38 construction initiatives have been reported, seven more than the first half of 2017. Apart from characteristics and location, prices have reduced through the years, going from 8-9,200 euro/Sq m in 2013-2016 to the current 7,00-7,500 euro/Sq m. In Rome, the old town has the highest prices with 10,500 euro/Sq m for new properties and 8,500 euro/Sq m for old ones. The demand is focused on properties for 100-150 Sq m with a terrace and a garage space. Pinciano-Veneto and Prati are the areas with the biggest price increases. While there have been only a few new construction sites launched in the second half of 2017: about 20 for new buildings and 11 still ongoing. The average prices per square metre have reduced through time from 8,500 euro in 2014-215 to 8,300 of last year.
Finally, the rental market has reported good results, with demand growing in Milan and stable in Rome. The average rent times have reduced, around 3 months for both cities. Rents are growing by 0.6% in Milan, while no significant growth has been registered
Source: Milano Finanza
Translator: Cristina Ambrosi
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