Scenari immobiliari certifies a good performance of the Italian real estate market in the early months of 2019, with trades growth of 12.1% compared to the first semester of 2018. By maintaining the present rate, with 325,000 trades carried out from January to date, 2019 would be closed to quota 670,000 operations, 9.8% more compared to last year. Prices though are still anchored, (-0.3% compared to 2018), with the exception of the vibrancy of the big cities.
Of note, the recovery of Rome, with a 12% increase in trades, overcoming Milan’s performance that stands at the value of +12.3%.
The analysis carried out by Scenari Immobiliari highlights the main reasons behind the positive boost in demand: for the 60% of cases, the desire to purchase comes from the need of “improving housing”, the remaining cases are either for the transition from renting to owning a house or come from the choice to invest, for themselves or for their children. In so many cases, unfortunately, the new buyers collide with an offer that is not actually in line with their needs, either for the bad maintenance status or for the characteristics of the product, thus they have to delay the purchase.
Casavo’s model was also born to meet these demands: in many cases, the properties that Casavo buys are less appealing to a private buyer, for their conditions or for the size. Therefore Casavo deals with renovations and potential fractionation of the property, thus enhancing the real estate asset and offering a product that is more suitable to the needs of a buyer.
What is the situation in Milan?
In the early months of 2019, 13,700 trades have been concluded in Milan, compared to the 12,200 of the same period in 2018 (+12.3%). The absorption rate is rising too from 85 to 90%, with the percentage of sold properties reaching 90% of the offer on the market.
The most wanted properties are the small ones: single-parent families are increasing, but most importantly, the rise in prices leads to the choice of a smaller property, which becomes more affordable. Moreover, these kinds of properties are more suitable as an investment property, a growing phenomenon within Milan’s market. Square footage ranging between 50 sqm and 85 sqm represents more than 40% of property transactions in 2019.
Vibrancy in Milan is not only supported by the escalating in transactions in every part of the city, but also by the average increase in prices of 1.2% compared to the first semester of 2018, with significant differences based on the areas of the Lombard capital.