A constantly changing market, often influenced by factors external to the real estate world.
An increased sale for the demographic range of 18-45 years and which also sees its change based on the redevelopment of entire neighborhoods. The press conference held this morning in the conference room of the Palermo Chamber of Commerce by the Tecnocasa group described, in detail, the real estate world of the housing and commercial sectors.
Since 2020, the year in which the pandemic inevitably affected buying and selling, the flow of sales and purchases of properties, not only residential properties, but also those intended for commercial use, has increased. An interesting fact that emerges is the decisive influence that the redevelopment of neighborhoods has, especially in the city of Palermo. The Sicilian capital also remains among the favorites of foreigners who work smartworking or who want a property for personal use or, at the same time, to generate income.
“The central areas of the city – states Roberto Puccio, Consultant of Are Tecnocasa – reported a decrease of 0.4%. There are stable values in the historic center, whose real estate market
It’s definitely dynamic. The trend of concentration of holiday homes, B&Bs and apartments intended for short-term rental is consolidated. The average invested capital is around €50 thousand, for example
a studio apartment already renovated and furnished. Also present are investors purchasing and renovating. In recent times there have been sporadic cases of foreigners moving to
work smart working in the city. High prices, around €2500-2600 per m2, in via Roma, via Francesco Crispi and the Cala area near the port. €2500-2600 per square meter is the value of a property
which enjoys a sea view. The Cape area is more popular and has lower prices, where you can buy for €1500 per square meter due to the presence of the market. On the contrary, Vucciria has been revalued where yes they reach peaks of €2500 per m2, for an already renovated property”.
The pedestrianization of various areas of Palermo, as well as the continuous and ever-increasing flow of tourists and strolling in the historic center, has led to an increase in investment in commercial use. The latter factor influenced by the drop in prices and rental rates.
“The second part of 2023 saw a drop in prices and rental rates for shops in thoroughfares and non-passageways. – declares Serafino Biondo, Tecnocasa Consultant. In recent times, in fact, there has been a tendency to sell shops because the taxation is too high and the rents are not sufficient or not certain. This happens especially in secondary streets where the vacancy rate is higher. Often in these streets the shops are empty or there is a change of use to a garage or warehouse. The fees do not go beyond €80 per square meter per year. On the contrary, investments in central areas, in particular in the historic centre, are holding up. Since it became a pedestrian area, the latter has become increasingly sought after because it has a high rental demand. We are talking about the area between the Massimo theater and the Quattro Canti of Palermo, which includes via Maqueda and Corso Vittorio Emanuele. In the southern area of the city the most commercial streets are via Tukory, via Messina Marine and via Lincoln, via Oreto, where rent costs €100 – €110 per m2 per year. Works are underway to enhance the port area thanks to investments in the trapezoidal pier, where activities mainly dedicated to catering have been established”.
But to invest in real estate you must also have the economic ability. Saro Pennisi, RA Kìron Partner SpA, Tecnocasa Group, presented during the press conference the data relating to the financing on which families were able to rely. Specifically, Sicilian families received financing for the purchase of a home for 426.5 million euros in 2023, with a decrease of -13.0% compared to the previous year. A figure which, however, represents 3.94% of the national total. A physiological decline given by the strong growth that occurred between 2013 and 2021 which led disbursements to grow from just over 20 billion to almost 60 billion, and by the phenomenon that characterized the increase in inflation in the Euro area, with consequent increase by the ECB in the official rate for parameter refinancing operations increased between 2022 and 2023 by 4.5%.
Through the processing of data from the credit brokerage agencies Kìron and Epicas, Kìron Partner SpA analyzed the trend with respect to the average amount of mortgage disbursed.
In the fourth quarter of 2023 in Sicily, an average mortgage amount of 99,608 euros was recorded, a decrease compared to what was recorded during the same quarter of the previous year, when the average ticket amounted to 102,115 euros. On average, those who take out a mortgage in the region are financed around 13% less than the average Italian borrower.
In January 2024, an ECB survey highlighted how nationwide the number of low-income families complaining of difficulty meeting mortgage payments has increased; data influenced mainly by the growth in mortgage installments caused by the increase in interest rates.
