The Vicenza Chamber of Commerce presented data on the Construction sector on the occasion of the publication of the new price list of the Real Estate Exchange. On the one hand, the long wave of incentives for the redevelopment of real estate assets and PNRR financing, on the other, a real estate market that pays for the surge in the cost of money and an increase in construction costs: this – in short – is the picture offered by numbers.
The price list – it has been said – presents an important innovation on a structural level: “This year we worked to create a new survey specifically for brand new homes – he reported Nicola De Paolipresident of the Executive Committee of the Real Estate Exchange – as the increase in construction costs due to the increase in the prices of materials and the new energy and anti-seismic fees has effectively created a market in itself for the latest generation properties, so we have dedicated a separate category for houses built from 2022 onwards. This with the aim of providing market operators and sellers and buyers with the most realistic and reliable picture possible regarding price trends. Prices that are also growing for recently built or renovated buildings, if they have at least an A and B energy class: what drives the phenomenon, in this case, is above all the forecast of future requirements imposed by the European Union starting from 2030 ″.
But the presentation of the new price list also has another value, as underlined by the president of the Vicenza Chamber of Commerce, Giorgio Xoccato: “And also the opportunity to highlight the importance of the role played by the Real Estate Exchange, which is a unique service among the Chambers of Commerce of the Veneto whose aim is to provide support to accredited real estate companies, to provide information to consumers and to make the real estate market more transparent. From this perspective, it is certainly a tool for regulating the market, aiding in the knowledge of the obligations and peculiarities that the law places on those who carry out real estate brokerage activities, as well as protection for consumers who are about to sign a contract. of sale or rental. In this regard, I would like to recall in particular the constant commitment, in collaboration with the Guardia di Finanza, against the abusive practice of real estate brokerage”.
The general context
As regards the performance of the construction sector and the real estate market, the analysis cannot ignore some considerations relating to the general picture, the sector comes from a still extremely positive 2023: according to Enea-MASE data, in fact, last year in Italy investments reached 44 billion against 35.4 in 2022. Furthermore, public investments and reforms regarding PNRR projects will involve construction massively at least until 2026, laying the foundations for a development that will hopes for the long term.
However, 2024 opens with some uncertainties relating to price dynamics, monetary policy and the continuation of international crises. In particular, on the one hand it is reasonable to expect a drop in interest rates following the recent stabilization of prices, on the other the costs of raw materials could undergo a new surge due to transit difficulties in the Red Sea area.
The construction sector
In the province of Vicenza in 2023 the local units in the real estate and construction sector are growing more on an annual basis compared to Italy: in fact they stand at +0.3% in Vicenza against the +0.1% in Italy, and are precisely 19,040. Almost half is represented by local units of specialized construction works (46.7% equal to 8,887 units). This is followed by 35.6% of real estate activities, 16.6% of construction and finally 1.1% of civil engineering.
For the second consecutive year, the growth of local units corresponds to an increase in employees, which at the end of 2023 are 28,847, up by +1.5% and equal to 419 people in absolute value. In numerical terms, the greatest increase, both at a national and local level, emerges in the category of specialized construction work (installation engineers).
As for the economic indicators of the construction sector, in the province of Vicenza in the fourth quarter of 2023 there are increases on a trend basis in turnover, prices and employment, while orders show a negative sign. The 6-month forecast appears optimistic, with all parameters showing strong growth except employment.
The Vicenza real estate market
The performance of the real estate market appears less brilliant: in Vicenza and the province in 2023 there were 10,132 construction sales, equal to -11.4% compared to 2022, a performance which, although negative, is better than the regional figure. Our province is in 17th place in Italy for the number of residential sales and 16th for the number of sales per 100 thousand inhabitants.
It should also be underlined that although sales in the capital are less than a fifth of the provincial total, in percentage terms over the last decade they have grown more than in the rest of the province, namely by +119.4% versus +95.7%, perhaps a sign of a greater correspondence of the prices and characteristics of the properties of the capital with respect to the purchasing power and needs of families.
The prices recorded by the Vicenza Real Estate Exchange
The common denominator in sales throughout the province is the increase in prices, confirming a certain tension on the demand for housing. The synthetic index calculated on the prices recorded by the Real Estate Exchange of the Vicenza Chamber of Commerce for recently built or newly renovated properties shows a significant increase. 2023 therefore further confirms the price growth already recorded in 2022 and 2021 after years of substantial stability or very limited growth.
This trend is certainly influenced by the tensions in the prices of construction materials, although it should be remembered that the analysis is not carried out on “new” buildings, i.e. those completed in the last two years, whose historical series begins precisely with the present survey. Compared to 2022, prices in the province grow by 2.9%, against the +5.6% change in the price indicator of new homes calculated by Istat on a national basis.
In general, the findings of the Vicenza Real Estate Exchange highlight increasing prices in all municipalities for recent or newly renovated buildings, but prices for the second-hand market are also generally increasing although with a lower intensity than for new ones and with a more diversified situation in the various areas of the province.
From a territorial point of view, in the prices of the capital the growth is similar for both used and recent homes, while it should be underlined that the data for new homes are in many cases significantly higher than the value of recent homes.
In Bassano del Grappa the data are generally increasing for both categories for which there is a historical series, but the Bassano market which was more lively in the last two years shows smaller increases compared to the city of Vicenza.
On the Plateau the bullish trend prevails, already recorded in the last two years, but the intensity is higher.
Finally, in the rest of the province the “-” signs are few and of little significance and increases clearly prevail.
Finally, a separate discussion concerns the prices referring only to those built in 2022-2023, which almost represent a market in themselves since, according to the Executive Committee of the Real Estate Exchange of the Vicenza Chamber of Commerce, the price of “brand new” buildings is affected by the surge of the prices and the supply difficulties that had already begun at the end of 2021: therefore from this year we have started a specific survey which records significantly higher values than those of recent home sales.
Still on the sales front, professional real estate agents highlight a trend in which the demand for homes exceeds the available supply not only in the capital but also in neighboring municipalities. The effect of the Superbonus was also felt in the province but the prospects in the future seem to highlight a progressive slowdown; then there is the issue of the still high cost of mortgages, due to the ECB’s rate maneuvers to combat inflation, which also weighs on the spending capacity of Vicenza consumers for new investments in homes.
