Italian market 2023
2023-01-30
Real estate, decrease in sales but increase in prices: forecasts for the 2023 market Tilesi, CENTURY 21 Italy: "Interest rates and the energy issue are the hot topics that could transform the real estate market in 2023" A strong real estate market but with a cooling compared to 2022, with a -15% on the number of sales for cities such as Rome and Milan. This, in summary, is the situation that we must expect for the year that has just begun according to the estimates of CENTURY 21 Italia in relation to the real estate market in our country. Decrease in sales. A situation that already appears quite clear, also thanks to some crucial elements such as rising interest rates, the inflationary peak and the war, factors that have shifted all the balances on which the market had instead rested for a good part of 2022. 'last year - says Tilesi, CEO of CENTURY 21 Italy - was a record year in terms of the number of trades, even more than 2021 when the trades were 'doped' by the aggregate of transactions not carried out in 2020 due to the lockdown . In short, a 2022 that held up, yielding to a slight decline only in the last quarter of the year. Well, we can say - continues Tilesi - that 2023 will be much more similar to the last quarter of last year than to the rest of 2022". A strong year, therefore, the one that has just begun, but less than the previous one.
Price increase. As for prices, however, there will be a general increase, obviously not the same in all areas of Italy. In Milan, for example, prices will stabilize, while property costs will increase in those cities that have more growth potential, such as Rome. In any case, the price increase will be evident. This is due, explains Tilesi, "to the fact that property owners will tend to sell less easily, as a result of the need to allocate liquidity". The house, therefore, returns to being perceived as a form of savings, a safe haven at a time when inflation is high. On the other hand, due to the increase in rates and therefore the reduction in the purchasing power of consumers with the same installment, access to the purchase of real estate will be reduced. A gap between sellers and buyers which will therefore increase and which will result in a reduction in the number of sales. “It is clear that the question of interest rates is a hot topic that we must keep under control - says Tilesi - there has been a flare-up and now we need to understand what direction it will take”.
Energy efficiency In addition to interest rates, there is another hot topic that for the first time will greatly affect the choice of properties to buy. We are talking about energy efficiency. Italy is not a country that produces energy, so when the cost of raw materials rises, as has happened in recent months, the cost of managing buildings also skyrockets. Added to this is that 60% of the real estate stock falls between the two worst energy classes and that the new European directives oblige new buildings to achieve zero emissions by 2030, while for existing buildings the limit is extended to 2050, also if the obligation remains to improve the energy class of that 60% of properties in the last two energy classes by 2030. In any case, this creates a purchase gap between efficient and non-efficient houses, because buyers will pay more attention before buying non-energy efficient buildings, since they know that they will have higher running costs. “Although this sensitivity already existed in some areas, it is the first time that the problem has acquired such an evident dimension and this will involve - says Tilesi - an attention from the Italian market that has never been there before. In particular, in areas where there are more energy-inefficient buildings, such as in the south, there could be a significant decrease in sales".
For more informations visit the official website of CENTURY 21 Italia: https://www.century21.it/
