Milan, 28 June 2024 – Signs of improvement, albeit slight, characterise the real estate auction market. From the joint study of Reviva and Immobiliallasta.it, it emerges that if in the first quarter of the year, the overall number of auctions was 22% lower with a total of 33,538 auctions, in the second quarter, however, the decline was less pronounced, equal to 18%, with 34,736 auctions. Therefore, the overall average for the semester is equal to a decrease of 20%, a sign that indicates a slight recovery compared to the first months of the year. May was the month with the highest number of auctions scheduled with 13,351 against the average of 11,379 for the semester. The overall price of the properties at auction was €7,906,295,801, or -20.7% compared to the €9,968,690,595 in 2023.
The typology of the properties
Regarding the type of goods put up for auction the residential component is the one that has reduced further decreasing by -9% compared to an increase in the non-residential component of 14% and land of 4.0%. A significant figure since the residential typology is also the most liquid and saleable.
How to participate in auctions
In terms of implementation methods, starting from 2020, with the post-pandemic acceleration, the telematic auctions have gained more and more space. Currently, they represent 46% of the total, highlighting the growing importance of this approach compared to traditional methods without enchantment or with mixed ones.
Auction prices
The average prices of residential properties remain unchanged, while they fall for land and non-residential properties. By analyzing average auction prices in 2024 and comparing them with the historical average, some significant trends emerge: the average price of residential properties remained almost unchangedgoing from €84,688 to €84,645, with a minimum variation of 0.1%. At the same time, non-residential properties saw a more significant drop, with an average price reduction from €177,914 to €167,057, equal to 6.1%. Land also suffered a decrease in prices, falling from €104,778 to €95,341, marking a decrease of 9%, however this last figure is less representative as it is also influenced by the fact that land can have significantly different prices based on the type. Specifically, based on what was found by Immobiliallasta.it, with a greater focus on the residential sector, in the second quarter of 2024 the prices per square meter of single houses at auction recorded an increase of 3%, villas saw a price increase of 14%, while apartments marked a decrease of 0.9%. For non-residential properties, the market maintained general stability, with significant variations only in the less numerous typologies such as buildings and hotels, which for this reason tend to fluctuate more. Commercial activities, on the other hand, recorded a 15% increase in prices compared to the previous quarter. “As can be seen from the analysis of Immobiliallasta.it, analyzing the prices in euros of houses per square meter, a slight recovery can be observed in the residential sector compared to the first quarter of 2023, while non-residential properties remain stable. As regards the supply of residential properties, usually easier to sell and with a more dynamic market, a decline was noted. At the same time, the supply of non-residential properties increased, with greater difficulty in selling, due to a more restricted market”, declares Ivano De Natale, CEO and Co-Founder of Immobiliallasta.it
Future prospects: improvement in the auction trend
Despite the current changes and challenges, the outlook for the coming years remains positive. In fact, it is expected that by the end of 2024 the total number of auctions will fluctuate between 120,000 and 135,000, with a declining trend that will continue to slow down and then stabilize in 2025. “In Italy, the process that brings a property to auction, from the moment a credit goes into default, takes about two years. This time is due to the various procedural steps, such as the formal notice, the precept acts, the foreclosure and the appointments of the various professionals in charge. With the worsening of the credit quality measured in recent months and the increase in defaulted credits, a new increase in the number of auctions is expected, albeit far from the numbers of 2019, but still a change of direction, starting from 2025/26”, concludes Giulio Licenza, Co-Founder and COO of Reviva.
