Corporate Works

The deep evolution of the Italian real estate market

 

Vasto, Abruzzo - Italy

Vasto, Abruzzo – Italy

Housing is no longer a safe haven for the younger generations

The brick no longer seems to be the safe investment property, especially for the younger generation. The purchase of the house no longer seems to be a priority, due to the economic conditions that have changed for the so-called millenials, generations roughly 25 to 40 years, poorer than previous generations. That’s mainly due to a change in lifestyle or because of the economic crisis that remains. The sharing economy , environmental sustainability, job insecurity have profoundly changed the issue. Now a home must be technologically advanced, safe, designed for energy efficiency and the use of natural materials, or otherwise promoting the health of its occupants. It is necessary to start designing the houses, taking into account the location and the correct orientation, the waterproofing of the building, but also the ventilation control, with renewable energy equipment and systems. “Today, you are asking for a connected, efficient, healthy home,” says Gaetano Courage, general manager of Paspartu, a company specializing in the restructuring of homes and buildings. “Our homes look more like a car, customizable, and re-examined over the years, to maintain performance. The imperative is to point towards urban regeneration “.

Economic conditions for the construction of houses more unfavorable than in France

The precariousness of work, the fact that there are fewer and fewer steady jons, also means that young couples rarely want to engage in a project to build a new house. The number of children per couple has also decreased significantly compared to the last century, which increases the demand for small-scale housing. Italy’s residential market is quite different from that of France for a rather simple reason: France counts 67 million inhabitants on a territory of about 513 000 km². Italy counts 63 million on a territory of approximately 310 000 km². Except that Italy is constituted by a good half of mountains, lakes, almost desert and uninhabitable areas. It can therefore be considered that its real population density is three times greater than that of France. Buildable land is more difficult to find, and, on average, much more expensive to buy. This is what guarantees a stability of the prices of the Italian real estate market, despite any economic crisis. It is a sort of floor, below which it really takes a major economic catastrophe in order for prices to go down. At present, I think that the Italian real estate market has hit the bottom, an opinion that seems to be corroborated by prices that have stabilized over the past few months and are even starting to rise slowly.

Let’s combine that with a real estate stock that by more than 62% dates before 1990, and we will understand the importance of restructuring and restoring existing houses and apartments.

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