Italy Sells Out Public Property

24/04/2014 – Real Estate Press

The sales target is to reduce public debt reaching 130% of GDP.

Italian State seems unaware of the magnitude of property it possesses. According to the latest report drawn by the Ministry of Economic Affairs and Finance, its real estate is worth €281 billion or even €400 billion, as some private sources claim. The total amount is equal to almost 25% of GDP.

The Government run by Matteo Renzi believes the sales will allow a significant public debt reduction and thorough examination of the matter revealed that, for instance, 40% of all public administrations have not provided any report on their real estate property ownership. Moreover, many of them rent offices and even entire buildings without bothering to pay the lease.

Therefore, despite having around 634.000 properties that jointly cover 300 million square meters, ranging from headquarters abandoned 10 years ago to offices scattered around and empty, public property still hits high. Is it idleness or malice?

The Chamber of Deputies has recently signed a new 9-year lease contract with a businessman who rented several buildings in the center of Rome for €20 million charged per year.



Original article: Real Estate Press

Translation: AURA REE