The real estate auction market in Italy showed signs of improvement in the second quarter of 2024, according to a joint study by Reviva and Immobiliallasta.it. This slight recovery is visible in the number of auctions and average property prices, although the sector continues to be influenced by post-pandemic dynamics and credit quality.
Real Estate Auctions: Numbers Slightly Up
The first quarter of 2024 saw a total of 33,538 auctions, with a decrease of 22% compared to the previous year. However, in the second quarter, the decline was less marked, amounting to 18%, with 34,736 auctions registered. The overall average for the semester marks a decrease of 20%, highlighting a recovery compared to the first months of the year.
The month of May was particularly significant, with 13,351 auctions, the highest number of the semester, compared to the monthly average of 11,379. total value of the properties at auction reached €7,906,295,801, marking a reduction of 20.7% compared to €9,968,690,595 in 2023.
Differences between types of goods at auction
The most significant decrease was in residential properties, with a reduction of 9%. In contrast, the non-residential component increased by 14% and land by 4%. This data is relevant because the residential sector it is generally the most liquid and salable.
Auction methods have continued to evolve: since 2020, with the acceleration due to the pandemic, online auctions have become increasingly important. They currently represent 46% of the total, highlighting the growing preference for this method over traditional ones.
Stable average prices for residential
I average prices of residential properties they remained almost unchanged, going from €84,688 to €84,645, with a minimum variation of 0.1%. Non-residential properties saw a decrease of 6.1%, with the average price falling from €177,914 to €167,057. Land recorded a reduction of 9%, with the average price going from €104,778 to €95,341, a less representative figure due to the variability of prices for this type of goods.
According to Immobiliallasta.it, in the second quarter of 2024, the prices per square meter of individual houses at auction increased by 3%, villas saw an increase of 14%, while apartments saw a decrease of 0.9%. For non-residential properties, the market remained stable, with significant variations only for fewer types such as apartment buildings and hotels. Commercial activities saw a 15% increase in prices compared to the previous quarter.
Analysis and future prospects
Ivano De Natale, CEO and Co-Founder of Immobiliallasta.it, underlines how the residential sector show a slight recovery compared to the first quarter of 2023, while non-residential real estate remains stable. The decrease in residential supply and the increase in non-residential supply reflect current market dynamics.
The prospects for the coming years are positive. The total number of auctions is expected to range between 120,000 and 135,000 by the end of 2024, with a slowing of the declining trend and stabilization expected for 2025.
Giulio Licenza, Co-Founder and COO of Reviva, highlights that the process of bringing a property to auction in Italy takes around two years. With the worsening of credit quality and the increase in defaulted loans, a new increase in the number of auctions is expected starting from 2025/26, albeit far from the 2019 numbers.
