The brick has always been considered by savers as a safe haven asset capable of maintaining the purchasing power of the invested capital and producing a profit over time. Is it still true? The real estate market it depends on the financial trend, on the economics of the countries and on contingent situations, but in particularly critical periods, investing money in apartments can always be a good choice.
L’market trend real estate in recent years has suffered many ups and downs between economic crises, pandemics and wars, but regardless of real estate prices, buying a house is first of all a choice of personal and family life. To buy a house in Italy in the big cities it takes on average over 100 thousand euros and before opening a mortgage it is legitimate to ask yourself a few questions about the correctness of evaluating a property.
Real estate market what is it?
The real estate market is the indicator of house prices and property sales relating to specific areas of the territory. Sooner or later in life it happens to almost all Italians to look for the price per square meter of houses in their own city. Having your own home is in fact a very widespread ambition in Italy. According to the latest data, over 77% of Italian families live in their own homes, while in southern Italy investing in brick is still a priority for 82.9% of citizens.
Know the real estate market it can help you to have greater awareness before buying an apartment, to sleep peacefully throughout your life or to finalize an investment. When it comes to buying a house, everyone’s doubts concern the cost of whether it will increase or decrease in the future, what is the right time to buy a house and whether it is preferable to invest in a two-room apartment in the center or in three rooms in the suburbs.
When preparing to buy an apartment or property, there are many parameters to consider. I am not only to consider i current real estate values and the available capital, but also a possible mortgage and the costs of the notary. If the purpose is savings or investment, in large cities an increase in house prices can be expected due to the redevelopment of large decentralized areas in strategic areas.
Outlying neighborhoods but close to the historic centers of large cities they can greatly increase the valuation per square meter if they are reorganized from an urbanistic point of view in a green and sustainable key, also because the pandemic has relaunched the desire to live in larger apartments. Those willing to live outside the city in the hinterland can find good offers in the municipalities best served by public transport and subways.
Real estate market trend
There are some economic and psychological factors that influence the trend of real estate market which in turn depends on the demand and supply of houses. When the demand increases the price per square meter, houses grow and this happens both when the brick in particular economic contexts becomes a safe haven as a long-term investment, and when people decide to move to larger apartments for reasons of personal well-being.
The speech obviously also concerns thepurchase of second homes in seaside or mountain resorts driven not necessarily by the desire for financial gain, but by the desire to have a place to spend holidays or happy moments. The pandemic has favored both reasons, like any crisis that creates uncertainty, a greater propensity to save, a desire for financial stability but also a desire to change one’s life.
The unknowns of the real estate market however, there are many and in addition to the reasons seen above they also concern the weight of property taxation and house taxes which can become a very onerous fixed cost. In addition to the current valuation of a property, in order to make a careful choice it is essential to predict what will happen in the next few years in relation to the money invested.
New or used house?
Better to buy one new or used house? Clearly it depends on the cost since, according to the real estate market, newly built houses cost 15 to 36% more. But is it worth it? In general, apartments with fewer years of age sell more easily and devalue less. New houses have higher prices but if condominiums are born, the area probably indicates an interesting development trend for the market in the future.
The new condos maintain a price per square meter greater for at least twenty years and can be purchased more easily with a mortgage also offered by the builder. The used can be convenient but there is an unknown factor of the state of the house and of the systems that may have to be replaced with very high condominium expenses. If it is to be renovated, consider how much money has to be spent.
In addition to the different prices of the real estate market between new and used houses the costs of registration, land registry and mortgage taxes change which can make the former even more onerous. On the other hand, the most recent homes have lower maintenance costs as well as lower maintenance and heating costs for a better energy class. Surely the new houses are better from the point of view of architectural barriers and are equipped with a parking space and the latest technologies related to home automation.
How to evaluate the properties?
The real estate market takes into account the valuation of properties for both residential and investment use. But what can contribute to change the price per square meter? First of all, the size of the house, whether the apartment is in good condition or needs to be renovated. Then the purchase area that defines the location of the apartment, closer to the center or on the outskirts. To assess the social level of the inhabitants, services and schools of reference and the position from a physical and environmental point of view.
Traffic, pollution and noise in a given area and any future developments such as subways, services, parks and job opportunities are to be considered. For a home, the neighborhood in a condominium could make a difference both in terms of costs and quality of life. Knowing what happens in condominium meetings and the climate between condominiums is important. Private gardens, façade renovations or other extra expenses must be carefully considered because too high condominium expenses could be a bitter surprise.
Real estate market quotes
The listing of real estate market in Italy it is carried out by research institutes such as Nomisma and Real Estate Scenarios supported by the federations of business agents and brokers Fiaip and Fimaa with the collaboration of large agencies such as Gabetti and Tecnocasa. The trend in house prices largely depends on the economic situation of the country and is in any case always linked to the interest rates that are applied to mortgages and loans required for the purchase of the first home.
In recent years, however, both the prices of new and old homes have risen. The interest of investors always concerns large cities for small sizes due to the phenomenon of short tourist rentals which can represent a good source of investment even if they distort historic centers. The owners, on the other hand, after the dramatic moments of the pandemic, are looking for larger and liveable homes, perhaps with rooms for smart working. Here are some resources to learn about property valuations in Italian cities.
Quotes Real estate quotation observatory of the revenue agency for all 8,000 Italian municipalities. The database can be consulted for the last semester. Contains house prices in Italian cities, from the center to the hinterland of Rome and Milan plus all the other provinces divided into zones to facilitate research
Real Estate Appraisal Site that provides useful elements to find real estate market prices and house values throughout Italy
Real estate observatory A site that allows you to monitor, analyze and share real estate situations in all Italian cities. Punctual reports on the trend of real estate prices are reported directly online
Borsini The trend of the real estate market on Sole 24 ore with prices area by area and the trend of real estate demand and supply by neighborhoods and medial square meter prices by type of home
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