The number of decreases real estate auctions in Italy in the first quarter of 2024; however, purchasing properties in this way remains an excellent solution for doing business and finding the home of your dreams. In fact, prices remain unchanged compared to the first quarter of 2023, and the main reason for the decline in auction transactions is to be attributed not to the lack of interest, but to the high mortgage rates and the consequent lower provision of credit by the banks. Here is what the joint study found Reviva and Immobiliallasta.it about.
Real estate auctions in Italy in 2024
According to the study, despite the decrease in the number of real estate auctions by 22% compared to the same quarter of last year with a number of auctions registered of 33,538 compared to 42,982, auctions continue to represent an optimal solution for the purchase of properties, especially in the North, compared to the traditional market which in the last year has recorded a contraction of 10%1 due to the scarcity of credit from the banks and the high interest rates on mortgages.
In fact, from the analysis carried out by the two companies specialized in real estate auctions, it emerges that despite the decline in the first quarter of 2024 compared to the previous year, the prices of apartments per square meter at auction remain unchanged at €670/m2 on an average of 119 m2. January, with 12,000 auctions, was the month with the highest number of operations, while February and March saw a stable figure around 10,000. A change of direction compared to previous years, in which the month of the quarter with the highest number of auctions was always March.
Non-residential auctions
Different trend for non-residential auctions: in the first quarter of 2024 the number of hotels up for auction increased by 17%, going from 246 in 2023 to 288. This increase, however, is accompanied by a reduction in prices per square meter, from €2,568/m2 at the end of 2023 to €2,344/m2 at the beginning of 2024, an index of fact that the demand for purchases of these structures has dropped.
Prices for cellars also decrease, going from €560/m2 in 2023 to €408/m2 in 2024 and for warehouses, going from €286/m2 at the end of 2023 to €270/m2 in 2024.
On the other hand, prices for warehouses and villas are growing, with the former going from €293/m2 in 2023 to €359/m2 in 2024 with a average of 318 properties and the latter go from €849/m2 in 2023 to €1,122/m2.
Trend of the real estate auction market, what are the forecasts?
“In this first quarter of 2024 the auction sector recorded a decline compared to the same period of 2023. Analysts predict that there will be a new increase in NPL inflows caused by the changed economic conditions, based on these forecasts and the registration times of procedures, we therefore expect an increase in procedures registered as early as the end of this year, which will subsequently lead to an increase in sales set on the basis of the times of setting the sales of the various courts.” – he comments Giulio Licenza, Co-Founder and COO of Reviva.
“From the analysis conducted, a positive trend emerges despite the decline in the number of auctions as prices per square meter remain stable, confirming that the auction market is in good health. This is highlighted by the constant interest of people in wanting to invest in purchasing properties at auction, attracted by the economic advantages offered and discouraged by the expensive mortgages which has reduced their purchasing power in the traditional market,” he concludes Ivano De Natale, CEO and Co-Founder of Immobiliallasta.it.
Tags: forecasts rest year idealistanews
