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Interest from UK property buyers on Gate-Away.com has overtaken US demand, where one-third of searchers have an Italian surname, on the Gate-Away.com website for the first time since it was launched in 2007

For the first time, British buyers have overtaken United States investors looking to buy property in Italy, says a leading specialist website.

Britons top the list of inquiries for Italian properties on Gate-Away.com during the first half of the year with 14.5%, followed by the United States with 13.3%, France, 10.6%, Germany, 8.5%, and Belgium, 6.6%.

Walter Di Martino, Head of Communications at Gateaway.com tells OPP Connect, “Brits have always been attracted to Italian lifestyle and its natural and artistic beauty. In recent decades other countries suffered an indiscriminate construction activity that ruined their landscapes. This has never happened to Italy which has preserved its heritage.

“USA has always been at the top of the list, since 2007, when Gate-Away.com was born – and there are two other reasons that make the overtaking even more significant: First of all, the Americans are numerically greater than Brits. Secondly, about 35% of enquiries from USA come from potential buyers bearing an Italian surname, so they’re interested in investing in their country of origin. This is not the case of Brits.”

Leading players in the property market are coming together to help create strategies to attract British buyers. For instance, Gate-Away.com, in collaboration with the Italian Chamber of Commerce & Industry for the UK, is the official sponsor of the Italian Pavilion at A Place in The Sun Live consumer property show.

British interest in Italy as a permanent destination has risen 11 year-on-year in the first six month of 2014, and the 2013 level was 31% up on 2012.

UK citizens who are thinking about Italy are doing so mainly to improve their quality of life and take advantage of better weather, rather than escaping Britain. Other popular reasons are concerned with educational and professional advancement, a lower cost-of-living (particularly in suburban and rural locations), and romance, says Mr Di Martino.

Most look to live in small-towns rather than cities and want “elbow-room”, with 83% of inquiries coming in for single-family homes versus just16.7% for apartments

Britons are more likely than anyone to take on a renovation project, with a quarter saying that they are willing to refurbish a property, compared to only 16.5% of French, and 15.5% of Americans.

The average price that British home seekers are looking at is (€280,000) is significantly lower than the world average (€480,000), as they often forecast additional costs of renovations works.

Puglia is the most popular region of Italy under consideration at (17.8%), followed by Tuscany at 16.3%, Abruzzo, 11.9%, Liguria, 11.4%, and Lombardy, 5.7%.

For more information visit:

http://www.opp.today/british-buyers-top-inquiries-for-first-time-on-italian-property-website/

Council in Gangi selling off around 20 homes for the price of a cup of coffee in the hope of attracting new life to hilltop community.

Italian property is now the third most popular in the world, according to TheMoveChannel.com. The property portal´s latest Top of the Props report reveals that Italy climbed two places to reach third in the April 2014 chart, receiving more enquiries than both Spain and Portugal.

Italy´s real estate has enjoyed a strong start to the year. After a slight dip in popularity at the end of 2013, the country re-entered TheMoveChannel.com´s top 10 rankings and has since seen its share of enquiries on the site rise to 4.52 per cent – enough to leapfrog fourth place Portugal and fifth place Spain.

Portugal´s share of enquiries has stayed steady at 3.92 per cent compared to 4.22 per cent last month. Spain, on the other hand, has seen its share of enquiries fall, accounting for just 3.81 per cent of enquiries last month.

France also saw its share of enquiries dip month-on-month from 8.4 per cent to 6.6 per cent, although it retained its runner-up spot behind the USA. US property has now been the most popular market on TheMoveChannel.com for 10 consecutive months. Aside from Italy, America was the only country in the top five to see its share of enquiries increase.

Brazil: Boom or bust?

Demand for Brazil continued to fall in April. The country slipped two spots into ninth, its second month of decline in a row. Brazil now accounts for 1.83 per cent of enquiries compared to a peak of 5.61 per cent in January 2014.

The decrease occurs just before the 2014 World Cup, when attention from investors, tourists and football fans alike is expected to be strong. Nonetheless, in real terms, the country has seen enquiries increase 43 per cent in the first quarter of 2014 compared to the fourth quarter of 2013, suggesting that South America is still high on buyers´ shopping lists.

Investors return to Thailand

Investors have also returned to Thailand, TheMoveChannel.com´s research reveals. After several months of low interest amid political unrest, rising demand for Pattaya property helped attract investors last month, taking the country back into the portal´s top 10.

Buyers also looked as far afield as the UAE. The area´s economic recovery has turned the emirates into an appealing market for overseas investors. That appeal has now seen the UAE climb seven places to reach 12th in TheMoveChannel.com´s chart, the highest ranking the country has ever had.

La Dolce Vita

While Canada, Thailand and the UAE all enjoyed rising popularity, many buyers were looking at more familiar European markets. Cyprus climbed up TheMoveChannel.com’s rankings for the second month in a row, hopping over Greece to become the 11th most popular property market on the site. Bulgaria enjoyed an even bigger rebound from 13th into the top 10 for the second time in the past six months.

Spain’s share of activity dwindled significantly but in real terms, enquiries for Spanish property only dipped 3 per cent in Q1 2014 from Q4 2013, highlighting buyers’ ongoing interest in the country’s famous Costas.

The pull of affordable lifestyle homes, though, was evident in Italy most of all. In real terms, the number of enquiries received by Italian property rose 7 per cent in the first quarter of 2014 compared to the previous three months. In April 2014, the low price of La Dolce Vita saw the country become the third most popular country among house hunters, a record high.

“Italy has been pressed into adopting tough austerity measures to try and get its economy in better shape,” explains Paul Belcher, MD of Ultissimo, who specialise in Lake Como property.

“Property prices have declined as demand has slumped and so Italian property represents much better value now than for the best part of a decade. International buyers are increasingly confident that they will see an upturn in property prices and many don´t want to miss the current opportunity.”

The agency also argues that Italy´s property market is a relatively stable safe haven when compared to some other countries.

“France’s government is causing investors and the domestic population alike considerable uncertainty,” adds Mr. Belcher. “Many French property sellers have yet to become realistic about pricing, so neighbouring Italy has become relatively much more attractive. Those who look carefully will find a sound property registration and legal system in Italy, property values tied to the Euro, and many good buying opportunities.”

Filippo Zeni, Co-Founder and Broker at i-RES, agrees that the time is now to make a purchase: “The market, overall, is at a good 25 per cent below 2008 without being overvalued. It is a moment of great opportunities – we truly believe that living the Italian dream is now more accessible than ever.”

For more information visit:

http://www.easier.com/123044-italian-property-third-most-popular-in-the-world.html

Findings from property agent CBRE reveal that the cross-border property investments in Italy picked up twice as much last year upon their 2012 investment transaction values. The increased interest shown by foreign investors is expected to continue in 2014. Meanwhile, local investment activity has assumed a depressed pace in the recent past. Analysts predict that local investors may re-surface into the property market in the coming two years. Also, analysts are concerned by the resurgence of the Italian real-estate market through capital instead of fundamentals.

Overseas investor appetite in Italian real estate market improves

A CBRE report claims that the cross-border investment values hit €3.6 billion during 2013. The report also reveals that North American investors accounted for about €1.3 billion of the transaction amounts while European investors accounted for transactions of a similar order as well. Investors from Asian and Middle-eastern countries contributed some €900 million of the net transactions with Qatari investors alone contributing €787 million.

Foreign investments in the Italian real estate market seem to be continuing on an upward swing through 2014. During the first quarter of 2014, nearly 48 percent of the €700 million transactions made in the the commercial property market in Italy, came from overseas investors.

Tight lending rules inhibit local investor activity

While overseas capital has been performing well in the Italian real estate market, the tight lending regulations are withholding the activity of local investors. Prelios’ Corporate and Institutional Business Development Head, Luca Turco says that local investors had the complete support of Italian banks earlier. Italian banks are now more focused on clearing out old debts, while foreign banks have begun to show a pronounced interest in the Italian market.

Foreign banks are careful with their credit ratings and lend their support to foreign investors in Italy, he explains. However, local investments are expected to return and cause the property prices to shoot up. Turco says that local investors who are currently out of the property market radar will step back in the coming two years. He predicts that local banks will be ready to tender new loans in two years time. The current period is the right time for overseas investors to make aggressive opportunistic investments, he adds.

Analysts voice concern over capital backed revival of Italian real-estate

Property investors warn that the new wave of investments in the Italian property market are backed by the capital rather than changes made in fundamentals. Ron Rawald, European real estate chief of Cerebrus, a private equity group in the US, says that the fundamentals are not as appreciable and the capital can only be solely accounted for the revival seen in the Italian property market. He reports that there has not been any reduction in the vacancy numbers, or an increase in the tenant numbers in Italian real estate. He adds that the inflow of new investments from capital rather than fundamentals puts the market in a worrisome position.

For more information visit:

http://www.property-abroad.com/italy/news-story/italian-property-market-sees-foreign-investments-double-during-2013-19317931/

Italy saw €3.6 bn of cross-border property investment in 2013, more than twice the amount in 2012, CBRE told the PropertyEU Italy Investment Briefing.

More than €1.3 bn came from North America and a similar amount from within Europe, according to CBRE data. 
Almost €900 mln came from the Middle East and Asia, with Qatar alone spending €787 mln. 
In May last year, PropertyEU revealed that Qatari investors had bought 40% of the flagship Porta Nuova mixed-use development in central Milan from Italian fund manager Hines.

The trend for foreign investment appears to be continuing into 2014, with 48% of the roughly €700 mln in commercial real estate deals done in Q1 coming from abroad. 

For the opening presenatation and videos of the event, click on Italy Investment Briefing

For more information visit:

http://www.propertyeu.info/index-newsletter/italy-briefing-foreign-investment-in-italy-doubles-in-2013/

The property market in Italy continues to enjoy a steady flow of overseas fund managers in the wake of its property market recovery. Hedge funds and private equity groups are finding ways to improve exposure as real-estate investors look around for opportunities with lucrative yields in the Italian property market.

Industry giants place their bets on Italy

Quantum Strategic Partners, a private fund steered by Soros Fund Management, invested nearly €19.7 million in one of Italy’s shopping center groups-Immobiliare Grande Distribuzione. The private fund group held a stake of five percent in Immobiliare Grande Distribuzione to become its third biggest investor. Another property fund manager, Prelios SGR, has two funds that are close-ended, Tecla and Olinda. The €400 million fund, Olinda, invests in many retail properties in Italy that include shopping centers, and recently received numerous buyout bids.

Blackstone Senior MD, James Seppala, says that the real-estate market in Italy has noticed an improved investor sentiment on the domestic as well as the overseas front. Property owners are quoting prices that are within the market levels instead of quoting sky-high prices. Due to this, the transaction volumes in 2013 picked up by nearly 80 percent, and the trend is expected to continue in 2014 as well, he added. He explained saying that they tendered the bid as most of the assets are based in Rome and Milan and are rented by institutional tenants.

Structured credit markets

Italian banks are planning on revisiting the balance sheets soon, which is why many investors are planning to enter the property market by purchasing property loans or bonds that are supported by commercial properties. An asset manager who makes notable investments in the structured credit market, says that their firm is currently shifting its focus to Italy. The capital pockets have already been worked on, in terms of both property assets and loans, sources confirmed.

Although the current market in Italy is enticing, the group looks at making its entry into the Italian property market in the coming few years, says the source. Another source from the firm said that for each €100 million worth of non-performing loans that surface in Italy, Spain reports €1 billion worth of non-performing loans. The non-performing loans in Spain are at more distressing levels than those in Italy, he explained. Fund managers have been exploring different real-estate properties in Italy, many of which are headed towards Rome, say sources.

Meanwhile, Ellington Management Group, a hedge fund manager, is drifting away from Italy steering towards other European markets like Ireland, Germany, Spain and the UK, due to the complex legal framework. Purchasing non-performing loans in Italy would limit them as it would be on a basis of making risk adjustments, said Ellington MD, Daniel Turner.

For more information visit:

http://www.property-abroad.com/italy/news-story/overseas-fund-managers-drawn-to-italys-recovering-property-market-19317917/

Many people dream of owning property abroad, but are put off by red-tape and what they believe will be a complicated process. Whether you are considering purchasing a house for a holiday getaway or investment, it can be a straightforward and relatively simple procedure. This is part one of a two-part series that will show you how easy it can be to buy in Italy if you follow the basic rules. Today we shall look at the search for a property, making an offer and il compromesso, the agreement to buy.

Looking for a Property

If you are at the beginning of your search, please take a look at our previous story, Six Things to Consider Before Buying a Property in Italy.  Assuming that you have already decided which part of Italy you’d like to buy in, it’s a good idea to make a checklist of exactly what you are looking for; it will save time in the end. Make a note of everything that you want, including the number of bedrooms, kitchen size, outdoor space, garage etc., but also take into consideration minor things that may not seem important at the start, things like do you want balconies or the work that comes with owning an olive grove. Next thing to add to the checklist is the type of property, do you want a new build or something that requires no refurbishment; if you fancy a project, then consider the amount of work you are prepared to do and add your restoration budget into the checklist.

Now that you have your checklist, looking for your ideal property becomes easier. Most people will begin their search on the internet, and there’s no end of websites out there advertising properties for sale. Many will have a search facility that allows you to type in your requirements; this is where a prepared checklist comes in handy and speeds up the process. One thing to be aware of is that many agencies don’t update their sites as often as they should, so it’s important, once you’ve found something you like, to open up a dialogue with them before you book a viewing trip. Ascertain that the property on the webpage is still for sale and that the price is as quoted. If the response is vague and the agent offers to show you similar properties, then you can safely assume that the property is no longer for sale. Many agenzie immobiliari, estate agents, offer viewing trips and, although these can be fun, they will not take your checklist into consideration and you could waste several days looking at properties that are unsuitable. Also not all agents have websites, so a good idea is, if you want to spend time in Italy on a viewing trip, take a day to visit the agencies in town and armed with your checklist, ask them what they have on their books that matches your requirements. You can get a list of agents in your chosen area before you leave for Italy by visiting www.agenzieimmobiliari.com and clicking on the “Agenzie” tab. Finally don’t rule out private sales, take time to drive around looking for the houses that are displaying vende signs. Private sales will save money on agency fees and may lead to you discovering other gems for sale that are not being advertised.

The Next Step

Once you have found the house you’d like to purchase, the next step is to clarify what is included in the price. If the property comes with land, make sure that you are made aware of the boundaries and if there are any restrictions and also if anyone has rights of access. Before you make a formal offer, you may consider whether or not it is worthwhile hiring a consulente immobiliare, a valuer. If you are buying the house with a mortgage, then the lender will certainly request you get a valuation. If you are a cash buyer then you may want to go with your instinct. In Italy very few people have a formal valuation, but if you want peace of mind the valuer will assess the property worth based on other houses in the area, give you a detailed plan of the house and its land, including any encumbrances and will also be able to advise on the planning status of the property and if there any restrictions that the local council impose in the area. If the property requires work, such as rewiring, plastering or a new bathroom, it is a good idea to get an estimate (il preventivo) for the work, as this can then be factored into your offer. For major jobs, particularly structural work or anything that alters the house footprint, such as adding an internal staircase, you will need to hire a geometra who will liaise with the council on your behalf and obtain any permissions required.

The Offer

Once you are completely satisfied, you can then make an offer and, should that offer be accepted, you will be ready to hire a lawyer (notaio), whose job it is to see that the sale goes through smoothly and efficiently; it’s not unheard of for both the seller and the buyer to use the same lawyer; this can often speed up the process and allays any communication problems. Once you have agreed to purchase the property you will be required to do two things. Pay a deposit as proof of intention to buy and to sign il contratto preliminare, a pre-sale contract, also known as il Compromesso. The contract is binding and, should you pull out, you will lose your deposit and, in some cases, may be asked to pay compensation to the seller, so it is vitally important that you are committed to buying before you reach this stage. Should the vendor pull out of the sale you will be refunded your deposit and, in most cases, the vendor will have to match your deposit as compensation. The contract will stipulate the property dimensions, the land and its boundaries and the actual price to be paid. At this stage, ensure that any extras that have been agreed upon and are included in the sale are also written into the contract. If your purchase is dependent upon achieving a mortgage the contract may have a clause stipulating this, which will safeguard your deposit should the mortgage be declined. Once you have got to this stage in the purchase, it’s not just a case of sitting back and waiting for the lawyers to do their jobs, there’s still much more that you will need to do, but the hardest part is now over, so reward yourself with a glass of something sparkling and start to realise that your dream is almost a reality.

For more information visit:

http://www.italymagazine.com/featured-story/buying-property-italy-part-one#sthash.IrproaCx.dpuf

The IPD Italy Annual Property Index, released today, recorded a total return of 2.5% over the full year 2013, 90 basis points higher than that achieved in 2012. Although the capital growth continued to tread in negative territory (-3.1%), Italian real estate confirmed a stable and robust income return, at 5.7%.

Private unleveraged property investments compare unfavourably against traditional asset classes, as equities have recorded a 12-month return of 16.1% in 2013, followed closely by real estate stocks, at 15.8%. Bonds posted a total return of 8.7% over the same period.

Looking at the longer term, direct property recorded an average total return of 2.8%pa over 3 years, 3.1%pa over 5 years and 5.1%pa over 10 years, outperforming both equities (1.4%pa, 3.5%pa and 0.8%pa respectively) and real estate equities (-11.3%pa, -4.9%pa, -5.2%pa respectively), and scoring higher average returns than bonds (5.6%pa) over a 10-year horizon.

Luigi Pischedda, Senior Associate and Head of IPD Italy commented: “IPD’s latest Italian Index confirms recovery trends already observed in our latest publications, the Biannual Property Index and the Property Fund Index, which are characterised by a lower rate of decline in the market values and by stable income returns.”

Across the main sectors, industrial property recorded the highest total return, of 3.3%, followed by retail at 3.1% and office at 1.8%. Capital value declines were least dramatic for retail assets, with a -2.7% 12-month capital value growth; office values decreased on average by 3.2%, whilst industrial properties took the hardest hit at -3.8%, despite yielding the highest income return of 7.4%. The income return for retail and office was respectively 5.9% and 5.1%.

Luigi Pischedda continued: “Property fundamentals continued to convey mixed signals: we recorded yet another 12 months of declining rental values across the board and high vacancy rates especially in the peripheral area of Milan, but also lower yields, which have moved in for most segments at the December 2013 snapshot.

“Although the question about whether the market has finally bottomed-out is still unanswered, we are able to report two useful pieces of information. Firstly, the decline in values since the crisis has well surpassed in magnitude the growth we have recorded up to 2007. Secondly, most of the sale transactions we have monitored in 2013 achieved a price in the +/-10% range compared with the latest valuation. In more than half the cases, the price obtained was higher than the latest valuation, which is a noticeable result in a buyer’s market.”

For more information visit:

http://www.property-magazine.eu/ipd-italy-annual-property-index-full-year-results-to-december-2013-28070.html

Many people have a dream of owning a property abroad and despite the fall in sales of Spanish and Portuguese properties and the rise in demand for holiday homes in Bulgaria and Croatia, the Italian market remains constant: in 2012 and 2013 more holiday homes in Italy were purchased by German and English buyers. So, if you are looking to buy yourself a slice of Sicily or a bolt-hole in Bari, here are six things to consider before you start your search.

Region

Whether you’re looking for a holiday home or a permanent residence, make sure you do your research. Italy’s twenty regions are a diverse mix of mountains and valleys and dusty plains and lush grasslands, so finding the one best suited to your needs should be your first priority. For example, Florence has an average winter temperature of two degrees compared to Positano’s nine degrees. Summer temperatures in Calabria can exceed a blistering 32 degrees in comparison to Lombardy’s average of 23, and in May Puglia on average has 37 mm (1.5 inches) of rain, whereas Sicily only experiences a quarter of this. If you’re partial to a spot of skiing then Piemonte or the mountains of Abruzzo would be an ideal place to start your search. If you’re more of a holiday resort lover, then maybe the Venetian lido or Le Marche’s coastal towns will be better suited. The only way to truly decide upon any region is to visit it, and once you have made a decision then revisit at different times of the year; a coastal town may seem exciting when full of beach umbrellas and holiday makers, but how will you feel about it when the tourists have left? The mountainous Abruzzo has charming, ancient villages to explore on a sunny June afternoon, but only those who truly love the place will still see the charm on a dreary February morning.

Holiday Home or Residence

One thing to consider is will the property be a holiday home or a permanent residence. At first you may think that they would both have different considerations, but there’s very little to separate them. Obviously for a holiday home two of the most important things to think about are proximity to an airport and transport links and, importantly, security is an issue during the weeks when it will be unoccupied. If you are choosing to locate permanently consider if you need to find work. Your chance of obtaining employment will be increased if you are closer to a major town or city. If you are hoping to set up a business this will require serious consideration; will there be the same demand for English language lessons in rural Basilicata as for holiday accommodation in Sardinia? But before you make any decision, consider this, many holiday home owners eventually become full time residents when they decide to retire.

Location

What type of property would tick all your boxes? Some people will be content with an apartment and sea view, whilst others may prefer a townhouse on a piazza or a rural retreat. Pay close attention to the type of house that you think will suit you as you may find your requirements change during your search. A townhouse that’s tucked up a cobbled vicolo may have a traditional charm, but consider how far away the nearest parking spaces are. If you want to come completely absorbed into everyday Italian life, then a townhouse may be ideal, but don’t forget to factor in the sound of late night revelry during the summer festivals. A rural property has its own pros and cons: a positive is the tranquillity and, if you’re lucky, spectacular views coupled with the opportunity to grow your own produce. However, on the downside is the prospect of being snowed in during winter, the distance from local amenities and periods of isolation.

Habitable or Restoration

A house for restoration may seem a bargain in comparison to a new build, but before you even consider viewing anywhere, sit down with a calculator and start doing your research. A tumbledown farmhouse on a hillside may make a perfect restoration project, but will it be cost-effective? Look out for those hidden costs such as converting its use from a previous farming property to an urban residence. Make sure you check the land boundaries and if anyone has a contract to work it: it won’t help your relationship with the locals if you suddenly tell Nino that, despite a long-standing agreement, his family can no longer grow their artichokes on your land. If you have decided on the locality where you wish to buy, make enquiries at the comune (council) offices about the cost of obtaining work permission and any restrictions. I personally know someone who had to repaint the outside of their house as the colour they had originally chosen was not on the council’s list of acceptable colours. Habitable in Italy has a completely different meaning than the English or American definition; in Italy, habitable can refer to anything with a roof and four walls, it may not mean the building has windows and it certainly won’t indicate that all services are connected. One thing to also point out is, if you view a property that is furnished, make sure you ask what is included in the purchase price. More often than not, when vacating a property, the vendor will, apart from the bathroom’s sanitary ware, remove everything including the light bulbs. If you want the kitchen fittings, then you’ll need to negotiate a price and have the purchase written into your contract to buy.

Community

Italian people are mostly hospitable towards foreigners and welcome both the increased financial support they bring to the community and the development of redundant properties. If your grasp of the language is limited, then it might help to consider more populated areas where the possibility of meeting local people with working knowledge of your native language is higher. In more rural locations, if you need the security of your native language, make an important part of your search the need to enquire if there’s an expat community nearby. Maybe consider joining one of the many forums online and use this to determine if the area you have selected has any pockets of expats nearby.

Renting

Finally, to be doubly sure you’ve made the right decision regarding location and house type, it’s a good idea to rent for a period of time that is longer than the usual two-week break, and if this isn’t possible, most definitely rent out of season. Renting will give you the opportunity to truly experience the day-to-day life around you, whilst giving you the opportunity to make friends, which in turn may lead you to discover your dream house in Italy. This said whatever and wherever you choose to buy, the important thing is to enjoy the experience.

For more information visit:

 http://www.italymagazine.com/featured-story/six-things-consider-buying-property-italy#sthash.lsJPi7SO.dpuf

Property prices in Italy are expected to fall further in 2014 with a weak domestic economic outlook affecting the residential real estate market.

House prices have declined in real terms by 5.8% year on year since 2012 and the trend appears not to have stabilised, according to the latest analysis report from Fitch Ratings.

It points out that figures from Nomisma also show that the real estate market has also contracted in terms of the number of sales by about 8% year on year.

Fitch expects the current housing market cycle to be driven by the slow economic recovery, which will take time to reflect in stronger and increasing houses prices. Fitch expects further nominal house price declines of about 4% between now and the end of 2014.

The Italian economy is expected to have exited recession in the fourth quarter of 2013, although any recovery is likely to be slow, the report points out. ‘The private sector entered the crisis with a healthy balance sheet, although the rising unemployment and the tight credit conditions are still potential threats and individuals’ purchasing power is weighed down by still tight credit conditions as well as fiscal headwinds,’ the report says.

The agency believes that the mortgage rates are likely to remain stable, although significantly higher than in the core European Union countries. However, the persistent stress on employment and real wages will continue to affect mortgage affordability.

But it also points out that the average interest rates on new mortgages has remained rather stable over the past 15 months at 4.7% as of the third quarter of 2013 compared with 4.8% in the second quarter of 2012 and the European Central Bank policy rate is expected to remain low.

However, mortgage arrears are still increasing, though to a lesser extent. They increased by 8% year on year in 2013 compared to 9% year on year in 2012. ‘This confirms the persistent constraints on borrower’s incomes created by the general macroeconomic and unemployment challenges, although some sign of recovery is likely in early 2014,’ the report says, adding that a medium term rise in rates is likely to result in an increase in arrears.

Fitch expects 2014 lending volumes to remain subdued as the domestic recovery, expected to take place in 2014, is likely to be weak. However, the agency believes that the residential mortgage volumes should slightly expand, thanks to the lower cost of credit of loans to individuals compared to other borrower segments.

For more information visit:

http://www.propertywire.com/news/europe/italy-real-estate-prices-201402248824.html