The improvement in the Italian real estate market is slight but steady.
At the 52nd National Congress of Notaries, the “statistical report on notaries” was presented for the first half of the year. The report reveals an interesting view of the Italian real estate market. In particular, in terms of sales, it is still the north of the country, Lombardy, in first position, while in the mortgage sector, there is still a certain caution both in requesting and providing funds.
Buying property in Italy
During the first half of 2017, 401,432 real estate purchases were analyzed, including 300,929 covered dwellings and important premises (boxes, cellars and car parks). More than half of purchases of manufactured goods, ie 56.48% (163,155 transactions), allowed for a first improvement in housing with a clear distinction between purchasing from private customers and from professionals with a clear crisis in the purchasing of new or renovated properties. On the profile of the territorial division, there is a clear difference between the North and the South of the country.
The North is doing better on the real estate market
More than 56% of real estate transfers were made in the North (34.84% in the Northwest, 21.59% in the Northeast), the Center 17.74%, the South 18.15% and the islands 7.67%. A positive number made the Friuli Venezia Giulia a record with + 10.72%, the Aosta Valley with + 6.37%, Trentino-Alto Adige with + 4.40%. In the Center, unlike the rest of the regions of the area, Umbria puts a + 7.91%. Lombardy and Veneto are also positive, with respectively + 2.60% and + 0.74%.
Lombardy reamains the region where more goods are traded with 82,561 transfers, equivalent to 824 transfers per 100,000 inhabitants. In terms of housing, 56.48% are purchased with the first home purchase subvention: 49.5% are purchased by individuals and only 6.9% by businesses. The majority of the purchase of the first house is between the ages of 18 and 35: 39.5% of transfers; they increased by 3% compared with 2016. Even in the first half of 2017 – as in the first half of the previous year – 55% of the purchase of buildings and 97% of the purchase of agricultural land and 85% of the buildings are under the price of 100,000 euros.
A certain caution and a low propensity to risk in the world of mortgages
There is a 2% increase in new mortgage loans on buildings, but there is still a propensity for prudence and aversion to banking risk, as more than 70% of mortgages do not exceed 150,000 Euros. However, it seems important to note a rise of more than 10% in loans of more than € 500,000 €, indicating a resumption of large investments. In the first half, also increased by about 9% the amount provided by banks for new loans. Taking into account the total amount of bank financing: 78% are represented by new mortgages (mortgages), while substitutes represent 13.38%. The most funded age range is 18-35 and 36-45, of which 70% is funded.