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Overview of the real estate market of Italy – 2015

The history of the development

     Drawing an analogy of the modern history of development of the market of real estate in Italy, you will notice that it is similar to the situation in other Mediterranean countries. The rapid growth of the housing stock was observed until 2009. Then came the period of decline. If in Spain, for example, the market is sorely dived down, in Italy this process was more gradual. The European Central Bank noted in this period (until 2014) to reduce by 20% the cost of 1 m2 of housing in large and resort Italian cities.

     The largest drop of 30% was recorded in the port city of Catania, Taranto (the provincial capital of Puglia) and in the capital of the region Friuli-Venezia Giulia - Trieste. The fate of Genoa and Naples fell drop an average of 8%. But Venice, Rome, Milan and other cities, rising prices in some areas to 20% in the same period of time.

     The statistical office Istat at the beginning of 2015, a decline was registered in prices of 0.7% over the quarter, a year - 3.4 percent. Turning point 2014 called, because of the increasing number of transactions. 553 thousand residential real estate has changed owners. This figure is by 1.6% more than in the previous year. 10% increase in the number of property sales in Italy in the cities of Bologna, Florence, Palermo, Rome, Milan.
Mortgage lending increased by more than 50%, is one of the indicators of positive development trends of the industry. Banks of Italy in the first quarter of 2015 issued by nearly 8 billion euros in loans to buy housing. Fluctuations in the exchange rate "has played into the hands of" the British and Americans, have shown an unprecedented interest in housing in Italy.

Trends 2015

     Italian property attracts the attention of people from Germany, USA, Russia, China, great Britain, Scandinavian countries and many others. First, demand for homes and apartments, located near the coast and large lakes of Garda, Como, Maggiore and Iseo. Out of competition - real estate in Rome and Milan.

     Price spread is large enough. In the Northern areas of 1 m2 is from 3 to 4 thousand Euro, while in the South can be given over the same area just about a thousand. In large cities the prices is twice higher than in the Northern regions.
Banks are reluctant to deal with foreigners. Requirements they put forward more hard. The annual rate to 5% own contribution - 60%.
But "worth it". Rental housing in large cities such as Milan and Rome (for a day) will allow the owner to get up to 11% per annum.

Standard pricing

     Typical prices look like this:

  • apartments with an area up to 50 m2 in the resort area of Calabria (secondary market) within walking distance to the sea is about 30 thousand euros;
  • house to 100 "squares" (secondary market) in the Abruzzo region, 40 minutes by car to sea - from 60 thousand;
  • the apartment is on the coast in Liguria and Tuscany - about 200 thousand euros and more;
  • an equivalent apartment in a luxury LCD of 1 million euros;
  • "kopeck piece" in Milan - EUR 200 thousand and more (near metro station);
  • equal in the centre of Rome and Milan - more than 500 thousand;
  • villas on the famous lakes - more than 500 thousand euros.

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What will the coming year
     The real estate market, despite the spikes and jump up and buying activity is still weak. In the long term slow decline in prices until the end of 2015. Fitch rating Agency projected a worsening situation until 2016, which will be a turning point. Then prices will surely go up. Least of all in a crisis situation, suffer major Northern city.

     However, the interest in acquiring the Italian housing from residents of Russia and other post-Soviet States continues unabated. Group of companies analysts Italia-Facile have concluded that Italy holds a stable position in the TOP 5 of the rating areas to buy houses and apartments abroad. Demand, as before, will be divided into two characteristic features: the presence of the buyers budget of more than 200 thousand euros (they choose a prestigious Northern part of Italy), and a more modest budget buyers (they can "afford" the cheapest southern regions).

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