Italy’s real estate market keeps recover | 2019-07-21

Italy’s real estate market keeps recover

21 July, 2019 12:00 AM printer

ROME: Italy’s real estate market kept recovering in 2018 and in the first part of 2019 despite an uncertain domestic economic context, according to an annual report unveiled on Thursday.

“The precariousness of the domestic economic situation does not seem to jeopardize the ability to rebound of the real estate sector, which has been laboriously recovering its lost positions after being hit by an hard crisis,” said the Real Estate Market Report issued by Nomisma, an independent economic research institute, reports Xinhua.

The report recalled the real estate market began recovering in 2014, although timidly, after suffering one of the worst recessions in decades.

The latest positive signals were due to “both a further expansion of transactions and a gradual improvement in all of the sector’s major economic indicators.”

According to data, the real estate market recorded 691,000 transactions in 2018 against about 598,000 in 2017. The housing component accounted for some 84 percent of total transactions last year, and this “confirms Italy’s trend, according to which well over half of houses purchased are to be used as primary residence,” according to Nomisma analysts.

“The households’ demand has remained strong (in 2018), and there was a

widespread support by banks for access to credit, which has been crucial for

the recovery,” Luca Dondi, Nomisma Managing Director, told Xinhua.

People aged between 18 and 35 years represented a large portion (29.4 percent of total) of all those purchasing a house in 2018, the report also showed.

Such phenomenon was seen as quite interesting, considering the high youth unemployment rate in Italy (at 30.5 percent in May) and the contract precariousness affecting young workers on the job market.

Furthermore, the report registered a reduction in the average length of transactions to sell and buy a house, and a modest increase (0.2 percent) in average selling prices.