Low house prices in Italy will stay low

According to one of the latest reports from Nomisma, Italian house prices are expected to drop again in 2012 due to the persistent recession and ongoing issues in the Eurozone. New Government plans are also predicted to help keep prices low for the foreseeable future.

The report expects the quantity of house sales to be at its lowest since 2000. It is thought that purchases may drop down to 529,306 (reduction of 12%). This estimate is based on the fact that the number of Italian property sales in the first quarter of this year dropped by about 20%. The same report demonstrates that the cost of a new house fell by 1.8% in the beginning of this year, and when compared to 2008, prices in the biggest Italian cities have fallen by 11%.

Nomisma has said.“The deteriorating economic context, coupled with more selective borrowing conditions and the widespread expectations of a wider depreciation than already recorded are the main reasons for the new halt to the real estate market.”

Bloomberg has predicted that the Italian economy may decrease by up to 2.4% this year, and that home sales are expected to fall further ‘amid rising unemployment and Prime Minister Mario Monti’s austerity measures weighing on consumer demand’

It was revealed by a Finance Ministry agency that, in June, the Italian property market posted its largest drop since the beginning of data collection in 2004  A new housing levy, marking the reappearance of tax on primary residences after four years, ‘won’t be an incentive for the market’ in coming months, stated the Agenzia del Territorio.

If you are interested in the Italian property market, would like to take advantage of Italy’s low housing prices or are interested in taking out an Italian mortgage, get in touch with Conti - Mortgages Overseas by exploring our website (www.mortgagesoverseas.com) or via telephone 08009700985

Cautious overseas property buyers stick to low risk countries

According to a property expert, the continuing economic situation is causing investors in overseas property to stick to nations viewed as ‘low-risk’ or ‘core-markets’ in an attempt to evade the ongoing Eurozone crisis.

Associate director of forecasting at DTZ, Matthew Hall has said that there are still  plenty of chances for potential  investors in property abroad regardless of the current state of the market.

Right now, a spectrum has evolved with polar ends. Those countries most and least affected by the economic crisis e.g. Nordic countries have experienced downward pressure on prices where the demand from investors is for ‘a very low risk, safe and stable type of asset’. People approach buying property in Spain with caution due to its recent Eurozone bailout and financial difficulties.

Mr Hall had this to say: "Core Europe and the safe haven markets have seen further downward pressure as investors flee the perceived risk in the most exposed European economies. The required rate of return as a result has been dragged down for property, so this has increased the attractiveness of core markets."

He then added that there is evidence that overseas property buyers are seeking out European countries that are likely to be a lower risk investment.  

Jones Lang LaSalle has recently shown that the British, German and French property markets have been increasingly dominant, together being accountable for 70% of European property investment in 2012 .  

Despite the persistent economic situation, several experts have agreed that the overseas property investment market is easily staying afloat

If you are interested in European property investment, buying a house abroad or in taking out an overseas mortgage, get in touch with Conti - Overseas Mortgages via our website (www.mortgagesoverseas.com ) or by telephone 08009700985