The real estate sector closed the week on a rally, thanks to signs of recovery in the sector and the prospect of new rate cuts by the Fed and the ECB.
ECB and Fed decided to move forward with cuts
The preliminary inflation data in the Euro Area for the month of November indicates an acceleration to 2.2% from 2% in the previous month, but the data was overall expected.
The deputy of the ECB Philip Lane this week confirmed the persistence of upside risks for inflationdue to the “many uncertainties” linked to the United States, the Middle East, China and that the ECB board “it will proceed meeting after meeting” in defining the path of rates, but “next year, in the absence of new shocks, this balance could be reached”.
Even the intervention of the hawk Isabel Schnabel confirmed the need for proceed calmly with rate adjustmentsindicating that “a gradual approach to remove the (monetary) restriction remains appropriate.” In his speech, Schnabel recognized that in the euro area the disinflationary process is proceeding as expected: “a factor that allowed us to further lower interest rates in October. But the fight against inflation is not yet won.”
As for the Fedthe minutes of the latest monetary policy meeting have strengthened the expectation of a new rate cut of interest in the pre-Christmas meeting. The members of the FOMC, in the last monetary policy meeting on November 6 and 7, agreed on the fact that economic activity “continued to expand at a solid pace”, while “inflation has made progress towards the 2% target, but remains somewhat high.” This is why US bankers believe that “it will be It is appropriate to gradually move towards a more neutral monetary lineover time, if the data is in line with expectations, with inflation continuing to move sustainably towards 2% and the economy remaining close to maximum employment.”
Good signs from the real estate market
The latest Observatory of Facile.ie and Mutui.it reports that the Financing requests collected online increased by 14% compared to the same period of 2023 in light of the positive news coming from the real estate market where, according to data from the Revenue Agency, the home sales they recorded a increase of 1.2%.
Give it to him USA the usual data has arrived on home sales (purchase agreements), which recorded a 2% increase on a monthly basisafter the 7.5% growth recorded in September. The figure compared with the -2.1% expected by analysts.
The US housing market is showing growth, as confirmed by theS&P Case-Shiller index, which highlighted a increase on an annual basis of 4.6% lower than the +5.2% of the previous month and the +4.7% of the consensus, while the FHFA index processed by the Federal Housing Finance Agency, which measures US housing prices, recorded a monthly increase of 0.7%, after the +0.4% recorded the previous month and the +0.3% expected.
In United Kingdomhowever, the Bank of England has reported that i Mortgage loans are accelerating 3.44 billion from the previous 2.57 billion, exceeding the consensus of 2.85 billion.
The good trend of the sector
The real estate sector experienced a positive week at European level, allowing theStoxx 600 Real Estate index to earn 1.16% on a weekly basis, bringing the performance since the beginning of the year on an equal footing.
A better performance was achieved by Italy, where the FTSE Italia All Share Real Estate index it achieved an increase of 12%, overtaking the FTSE MIB market index which recorded a decline of 0.3%. Since the beginning of the year, the sector has recorded a +2%.
Best and worst on the stock market
Among the real estate companies listed on Piazza Affari, the best performance is still that of IGDwhich scores a brilliant increase of almost 15%, after the Board of Directors approved the new 2025-2027 industrial plan which provides for investments of approximately 50 million euros, aimed at increasing the attractiveness of the property portfolio and reducing its environmental impact. The company is also aiming for net revenues from rental activities on a like-for-like basis to grow by approximately 16% in 2027 and a gross operating margin relating to core operations of approximately 98 million. Over the course of the plan, divestments of non-core assets for approximately 100 million euros are envisaged entirely aimed at reducing the Group’s financial leverage.
They also shine in the sector Aedes (+7%) e Remediation (+5%), while on the negative side they are notable Brioschi i (-0.8%) e Gabetti (-0.7%).
