The real estate market in Italy is 30 years back

The real estate market in Italy is 30 years back

The real estate market in Italy returned to the position of 30 years ago, reports Edilizia Territorio. The number of sales transactions of houses, registered at the end of 2012, amounted to 444,000, which was slightly more indicators in 1985 (430,000 transactions). The total volume of transactions decreased by 25.8% compared to 2011 (-30.5%% in the fourth quarter).

In 2012, there were 993,339 transactions in real estate market in Italy, which was almost 330,000 less than in 2011, when there was a decline by 24.8% in the whole year and 29.6% - in the fourth quarter.

The minus sign dominates in the annual budget. All segments of real estate reduced seriously, including industrial buildings (-19.7% in 2012, -17.1% in the fourth quarter), shops (-24.7% in 2012, -23% in the fourth quarter) and offices (-26.6% in 2012, -25.6% in the fourth quarter).

Indicators of mortgages also declined. In 2012, there was paid €19.6 billion, which was less by 42.8% compared with 2011 (€34.3 billion). Also there was a decrease by 38.6% in the number of properties purchased on mortgages (155,466 in 2012 against 253,405 in 2011).

An annual decrease by 23.4%  was recorded in the number of sales of naked property (23,606 transactions in 2012), and the drop was 31.4% in the fourth quarter.

The average interest rate (first payment) for a loan also increased from 3.37% in 2011 to 4.25% in 2012. In addition, baseline loan payment (720 euros) increased by 3%, but the average loan decreased slightly: from 23.4 years (2011) to 22.9 years (2012).