Hello again from Rome, Italy!!! Yes, we are still here working on property, travel, and cultural ideas for those of you interested in the Italian, international world of real estate. As we write, February has passed, and we head into Spring — actually today is a lovely day, Mediterranean blue sky, temperature about mid-sixties (Farenheit) , 18° C, not too bad for this time of year.
So….why are we sitting here struggling over our monthly Italian real estate newsletter topics for March? Pretty obvious really as northern Italy is at the center of the Covid-19 virus outbreak. Also obvious is that our new activity list isn’t exactly full up with inquiries from USA, UK and Australia. UK of course has its extra layer of worry with the ongoing Brexit activities. One would have to be incurable optimists to see rainbows in this market – B U T……we are just that!
We are optimistic because we believe in the long-range health of the Italian real estate market, most especially in our neck of the woods – Lazio — Why?
Covid-19 has not managed to spread to the center and/or south of Italy in any great numbers. So, right now, just to let you know, we are not all walking about in masks and the supermarkets have managed to keep up, and businesses are open. But, yes, we all have a plan B, and are taking reasonable precautions.
Our domestic real estate business goes on pretty much as usual – we are gathering new properties, showing existing properties, completing ongoing transactions, and organizing new ones.
The attractiveness of Italy in which to travel and to live remains and will remain after Covid-19 is long gone. You don’t have to give up on your plans and dreams. With our range of professional services, we can get you through it. We will figure it out together.
If you are the type of person open to international living and travel, most assuredly you have seen and felt the changes generated by globalization. The current global health situation is an expected occurrence given such; lessons will be learned, we will adapt, and continue to enjoy Italy’s beauty and culture.
Our recommendation is to keep your dreams, continue checking our site, Casacapitalinvestment.
Before Covid-19 hit, we had plans to share some interesting research on the Italian real estate market with you, both actual and projected figures. We are still going to share this information so that when the upturn begins, the base line will be visible.
Lazio real estate 2020 current and predicted:
“Housing Index in Italy is expected to be 101.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Housing Index in Italy to stand at 104.00 in 12 months time. In the long-term, the Italy House Price Index is projected to trend around 106.00 points in 2020, according to our econometric models”. *
*Taken from Trading economics.com using Eurostat
According to the Italian Housing Market Survey of 1,343 real estate agents carried out between 10 January and 7 February 2020, in the fourth quarter of 2019 the share of agents reporting a fall in house prices declined. The average discount on the initial asking prices also fell, but selling times, which continue to be longer in non-urban areas, were virtually unchanged. The share of real estate agents that sold at least one property in the quarter rose, and the negative balance between agents signaling an increase in new listings and those signaling a decrease narrowed.
The gap between asking prices and offers remains the principal cause of the cancellation of listings. The share of house purchases financed with a mortgage loan declined further and the loan-to-value ratio is still high. Real estate agents’ expectations improved regarding both their own situation and, in the medium term especially, the domestic market.*
.* Global Property Guide
As an aid in interpreting such figures, bear in mind that the Italian property market is not a particularly fluid one, as is the market in the USA. As a general rule, properties are either handed down generationally or are sold only once. With “flipping” at a minimum, the opportunity to make large amounts on buying and/or selling a home is at best minimal — property ownership in Italy is very much a long term proposition. As a prospective owner, especially one from abroad, ou should take this into your calculations. CCI can assist you in navigating these Italian real estate market with our Total Assistance Services. Contact us to find out more.
