If the housing market in 2014 gave concrete signs of recovery, in 2015 the increase of transactions will continue, although prices seem to be still falling. Stability will be reached over the next two years.
What happened in 2014
The year that we have just left behind, showed concrete signs of recovery for the Italian real estate market. After years of negative trends, the transactions increased by 3.6%. Prices are still falling and this element, together with the increase of mortgages released by banks, attract families, young couples and investors from Europe and other non-UE countries.
Prices
During the second half of 2014, real estate prices were still falling, recording an overall drop by 7.2%. It is esteemed that, since the beginning of the crisis, prices for real estates in Italy have dropped by 30-35%.
Types of properties and buyers’ preferences
As for the characteristics of the properties, most buyers are still opting for houses in good condition. Yet, houses to be restored are still attracting investors with good financial means, who want to customize their home. Nevertheless these homes, if placed on the market for favorable prices, still meet the favor of potential buyers.
Previsions for 2015
It is esteemed that, due to the decrease of the purchasing power and the still conspicuous real estate offers on the market, prices will drop by -4% and -2%. Sales, however, will further increase and there will be around 430 and 440 thousand sales. Price stability could be achieved in 2016 and confirmed in 2017.
(Source: Gruppo Studi Tecnocasa)
