Wednesday, 22 August 2012
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.
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