Interim week for the real estate sector on the marketswith the festive climate which limited exchanges and ideas, like the stock markets more generally. In the coming weeks, once the holidays have passed, we will return to evaluating the new macroeconomic data and central bankers’ declarations to obtain indications on the direction of monetary policy, with the interest rate levels influencing the performance of the sector.
The performance of the sector on the stock exchange
The real estate sector experienced an almost unchanged week at a European level, with the index Stoxx 600 Real Estate which recorded a +0.1% on a weekly basis, worse than the +0.4% of the Stoxx Europe 600.
A similar performance was achieved by Italy, where the index FTSE Italia All Share Real Estate showed no changes on a weekly basis, outperforming the FTSE MIB index which closed the week with an increase of 1.2%.
Real estate securities listed in Milan
Among the real estate companies listed on Piazza Affari, there was a week positive for Risanamento (+11.7%), followed by Next Re (+8.6%) and Abitare In (+7.4%). Just below parity Gabetti and IGD. The worse performances, however, are those of Brioschi (-2.5%), followed by Aedes (-1.8%).
Business insights came from Borgosesiaa company listed on Euronext Milan and active in the field of investments in alternative assets, which announced that it has completed real estate sales for a total of 34 million euros in 2024 on a consolidated basis, 7.3% more than in 2023.
Macroeconomic data
In recent days, interesting data has been published on house prices on both sides of the ocean. THE UK house prices they increased again in December 2024, according to Nationwide’s usual reporting. Notably, house prices increased by 0.7% in monthly terms, following a 1.2% increase in November. Home prices ended the year up 4.7% from the December 2023 level, up from 3.7% in November, the highest annual growth rate since late 2022.
Growth has also slowed US real estate market prices in October 2024. The FHFA index developed by the Federal Housing Finance Agency, which measures US housing prices, recorded a monthly increase of 0.4%, after the 0.7% growth recorded in the previous month, and an annual growth of 4.5% (same as the previous one). In the same month, the S&P Case-Shiller index, which measures the price trend in the main twenty metropolitan areas of the United States, showed an increase on an annual basis of 4.2% compared to +4.6% in the previous month .
Sector studies
Interesting data arrived this week on auctions in the real estate sector. Throughout the year 2024, 114,746 auctions were published (compared to 149,474 in 2023, -23%), for a total value of the minimum starting offer of approximately 19.6 billion euros (-20% compared to 24.6 billion euros as of 31 December 2023), according to the BRICK Observatory created by the Berry company.
Of the 114,746 auctions recorded in 2024, the region Lombardy confirms itself as the first region in terms of number of new auctions published (14,341, -29%). The city of Rome it comes first both among cities (4,643, +14%) and among courts (4,514, -18%). The city of Milan recorded the most significant increase in new auction notices (1,456, +94%). The average starting auction value at national level rises to 170,469 euros (+4% compared to 2023). In Sardinia the highest average starting price in Italy (311,513 euros, +66%), in Molise and Calabria the lowest.
