Italian real estate market: growing or falling back?
2017 was not a casual year, especially for Italy and especially for the real estate market. In this period in fact, the entire economy has been a victim of the global crisis, but one sector, ours, has reached the highest level.
The skyrocketing transactions and the economic speed given by the presence of numerous investors, above all from abroad, have generally increased the entire Italian system, giving the latter an optimistic swerve.
Unfortunately, the following year, a setback was recorded, due to numerous factors that still seem not to have totally abandoned the Italian peninsula.
In fact, in 2018 real estate transactions fell by around 22%, a low blow compared to the general situation in the European Union.
Why did Italy therefore always travel against the current state?
Let's analyze the situation together.
We can mainly identify two elements of fundamental importance. The first is given by political uncertainty, which still persists in the boot and has led to an exponential increase in the spread to exponential levels, in addition to the progressive slowing down of the possibility of access to numerous loans.
This last element should not be underestimated, considering that the Italian real estate market is closely connected and linked to bank loans and, the increase in the volatility of the same markets, has had an important weight. Unfortunately, most foreign investors have decided to opt for other locations.
The second factor that instead put the Italian economic and real estate system in difficulty, even if in a much smaller way, was the lack of raw material, in other words of real estate. In broad terms, 2018 was not a totally negative year, but the market focused only on certain centers, to the detriment of others. Milan was the real estate capital, followed by Rome. Stable segments, but still oriented towards an exact typology of reality: urban ones.
What is expected for 2019?
Uncertainty and fragmentation are two characteristics that do not seem to want to leave Italy but there are also valid reasons to be hopeful. The key sectors that will help the growth of the real estate market are logistics and retail.
The 2019 was inaugurated without many expectations, with the fear that a phase of stagnation and then regression may arrive. The hope is entrusted to foreign capitals that, deriving from the lovers of Italian culture and the coexistence of multiple variegated and unique realities, will continue to penetrate into ‘’ Bella Italia ’’.
It is hoped, in addition, that the system will be able to rise again thanks to the streamlining of a banking system that is too asphyxiated and that affects all the various economic sectors.
The skyrocketing transactions and the economic speed given by the presence of numerous investors, above all from abroad, have generally increased the entire Italian system, giving the latter an optimistic swerve.
Unfortunately, the following year, a setback was recorded, due to numerous factors that still seem not to have totally abandoned the Italian peninsula.
In fact, in 2018 real estate transactions fell by around 22%, a low blow compared to the general situation in the European Union.
Why did Italy therefore always travel against the current state?
Let's analyze the situation together.
We can mainly identify two elements of fundamental importance. The first is given by political uncertainty, which still persists in the boot and has led to an exponential increase in the spread to exponential levels, in addition to the progressive slowing down of the possibility of access to numerous loans.
This last element should not be underestimated, considering that the Italian real estate market is closely connected and linked to bank loans and, the increase in the volatility of the same markets, has had an important weight. Unfortunately, most foreign investors have decided to opt for other locations.
The second factor that instead put the Italian economic and real estate system in difficulty, even if in a much smaller way, was the lack of raw material, in other words of real estate. In broad terms, 2018 was not a totally negative year, but the market focused only on certain centers, to the detriment of others. Milan was the real estate capital, followed by Rome. Stable segments, but still oriented towards an exact typology of reality: urban ones.
What is expected for 2019?
Uncertainty and fragmentation are two characteristics that do not seem to want to leave Italy but there are also valid reasons to be hopeful. The key sectors that will help the growth of the real estate market are logistics and retail.
The 2019 was inaugurated without many expectations, with the fear that a phase of stagnation and then regression may arrive. The hope is entrusted to foreign capitals that, deriving from the lovers of Italian culture and the coexistence of multiple variegated and unique realities, will continue to penetrate into ‘’ Bella Italia ’’.
It is hoped, in addition, that the system will be able to rise again thanks to the streamlining of a banking system that is too asphyxiated and that affects all the various economic sectors.
