What will change between 2012 and 2013 in the investment property in Italy?
Undoubtedly, the increase in taxes on houses and the general difficulties which affect the Country, seriously will affect the value of the brick in the future.
Moreover, from some time, the Italian real estate market, suffers from several problems.
On what properties to invest in the next two years in Italy?
If the total market is reduced in value, it becomes even more important to identify the market shares that will remain profitable and then define, on which market segments will be profitable to invest than others.
Taking some analysis that we have already highlighted in the past, the gap more and more evident in the availability of income among people and thus, also in spending power and investment among the major Italian social classes, is increasingly transforming italian society in the direction of : a segment of rich, super rich and affluent and the other, by contrast, a composite group made up of many millions of people who switched from the old ‘middle class’ to new conditions of income than in the past and currently, can not access certain purchases and to some investments like the one on the house.
If until 2007, with easy access to credit for almost everyone, it was possible to buy a property also in the presence of low or modest incomes, now, things have changed completely.
Based on these changes, it needs to review the investment in properties in Italy for years to come.
Why the investment property in Italy will be still interesting for the future?
Despite the increase in tax and maintenance costs that will pour on the property as early as 2012, the investment in bricks and mortar, it will maintain its profitability in the future, provided to identify segments and targeted housing solutions that can easily be put-income .
In the future, fewer and fewer people can afford to purchase a property, and consequently, the demand for leased properties will grow compared to real estate for sale, by implementing a turnaround after several years.
In fact, for decades the Italians have increasingly pointed to the purchase of properties, also concluding ‘preposterous’ mortgages, who are now creating many hardships to their subscribers.
In addition, the Italian population is not set to decline, except in certain geographic areas of the country, where it is necessary to reconsider the investment in bricks and mortar because of greater demand and a collapse of their value for those properties considered to be of quality less and less attractive from investors.
How the housing market, will orient the future?
As in every crisis that respects, there will be a sort of ‘clean’ and evolution towards higher quality real estate products and housing solutions compatible with the new families and new needs of the market that from some years are present but are not always taken into account by builders and investors.
The buildings in which to invest in the future that will maintain an appropriate request, or even, be able to receive an increase in demand, are:
Buildings with disabled access.
All these properties (houses, apartments, commercial properties, etc..) that are compatible and accessible for people equipped with motor disabilities (that are over 10% of the population) and that at the time, these solutions are on the real estate market in an entirely inadequate compared to the current and future demand.
Small apartments.
Properties of small size and low costs (low cost condominium , equipped with indipendent heating, etc..) and for persons and households with low or limited incomes.
The problem of disposable income for millions of Italians, is the element that most will influence the future choices and thus, also the property market itself.
In the second part, we will consider other segments of the real estate market that will govern the crisis better than the brick and will can guarantee investors better in the future.
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