The progress of the real estate sector continues to be on the stock exchange conditioned by data of a market that still shows signs of hesitation, although it reserves many promises for 2024in view of an easing of the monetary policies of central banks and a recovery in the mortgage market and therefore in house sales. This is what emerges from a series of market researches, published by some important operators in the Real Estate sector.
A scenario still full of light and shadow
According to the Real Estate Market Observatory of Nomisma, in the last 18 months, the Italian real estate market has shown signs of decline with a decline in purchase demand which has translated into a trend reduction in sales of just under 8%. A fact that arises – Nomisma underlines – not so much from a change in purchasing intentions by families, but from the drastic reduction of the purchasing powerwhich are joined by the restrictive policies of the banks in the provision of mortgages. House prices in excellent and good condition they grew even more, recording an increase of 1.6% and 1.4% respectively in the semester. These are, Nomisma points out, increases slightly higher than those recorded in the first semester of last year and which confirm the upward trend in house prices that began in the post-pandemic period.
A trend confirmed by the Group Research Office Tecnocasawhich by analyzing the data released by the Revenue Agency on residential salesconfirms in the first quarter of 2024 a 7.2% reduction in volumescompared to the same period in 2023. The Italian real estate market therefore continues to slow down further due to the combination of prices and rates still high and general caution. Volumes are decreasing for all the big cities. In particular, Verona (-19.9%), Milan (-13.2%) and Turin (-10.2%) suffered a double contraction.
But we start building again
According to the Istat report on the sector residentialin the first quarter of 2024, a consistent cyclical growthwhich shows both the number of dwellings and the usable living area at the highest levels in the last seven quarters. Non-residential surface area, on the other hand, continues to be characterised by a fluctuating trend, resulting in a decrease after the significant growth in the last quarter of last year.
Positive outlook for 2024 in Europe
The European real estate market has demonstrated remarkable resilience and adaptability in 2023, with significant variations between countries due to different reactions to economic events and policy interventions, according to the report “Housing Insider: European Real Estate Insights” by RE/MAX Europewhich analyses trends in the real estate markets of Italy, Portugal, Spain, France, Germany, Austria, Belgium and Switzerland. The ECB’s monetary policies and the more stringent credit access conditions of banks have certainly pushed many potential buyers to postpone home purchases. However, the forecasts for 2024 are more optimistic: prices are expected to remain stable and real estate transactions will increase.
Real Estate Financial Performance
Real estate has been a mixed bag throughout the week, ending the week with a subdued performance: FTSE All Share Ral Estate Index in fact, it marked a variation equal to -0.35%. On the contrary, the European sector did better, where Stoxx 600 Real Estate Index he earned the 3.43%.
Among the sector players listed on Piazza Affari, the palm for increases goes to Aedes which brings home a gain of 4.62%.
Brilliant too Dotstay (+4.35%): the company active in the real estate sector as a relocation and property management operator for medium-long term rentals, has signed a strategic partnership with a prestigious Milanese university institute.
Good too Cabinets which jumps by 3 percentage points followed by Living In (+1.7%), which shows a more composed increase, after having denied press rumours about possible extraordinary operations by Aermont Capital.
Almost stable Restoration And IGDwhile the largest decreases stand out among those of Brioschiwhich slips by 1.79%, and Next King (-0.65%)..
