A recent study conducted by Reviva and Immobiliallasta.it provided an in-depth overview of trends in the real estate auction market in Italy, recording a mixed trend among different segments in the first quarter of 2024.
Despite a significant drop of 22 percent in the number of auctions compared to the first quarter of 2023, with 33,538 auctions recorded compared to 42,982 a year earlier, the average price per square meter of real estate remains stable at 670 euros. This constancy suggests a still strong attractiveness of the auction market, especially in northern Italy, where buyers seem to be turning to this option in response to the high cost of mortgages and reduced availability of credit.
While the residential sector is maintaining its prices, the same cannot be said for some non-residential property categories. Hotels, basements, and warehouses are seeing a decline in prices per square meter, indicating less investor interest in these types of properties. In contrast, warehouses and villas are seeing significant price increases, a sign of specific interest that remains alive in certain niches of the market.
The first quarter of 2024 also marked a shift in terms of the period of greatest auction activity: unlike previous years, January proved to be the busiest month, with February and March maintaining stable numbers around 10,000 auctions.
Despite the overall decline in auctions, experts expect an increase in the number of procedures entered by the end of the year due to changes in economic conditions, which could lead to more sales in later periods.
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.