Economics by Tile International
The European housing market begins to recover
According to the European Outlook 2018, presented in Milan by Scenari Immobiliari, after ten years of crisis, the European real estate markets are finally beginning to recover. The positive trend of the economy, the demand growth in all sectors and a little inflation are driving the real estate sector. This is all accompanied by the shortage of high quality housing units, whose construction suffered a setback during the years of crisis.
In 2017, the real estate markets of five major European countries will globally grow by an average of 6% to reach 9% in 2018. Even more important is the growth in EU28 measured at 12.9%. 2017 is a good year for France (+ 8.6%), Germany (+ 4.9%), Great Britain (+ 2.7%), and Spain (+ 11.6%). In Italy, due to a structural weakness, an increase of 4% is expected, which would rise to 6.2% in 2018, in line with Germany. For the next year, Spain and France are expected to grow + 10%; also England will recover after two years of decline. According to the analysis, the sale prices of buildings are recovering, with over 4% in Germany and Spain. In Italy, the average national figure is an increase of 0.3% in residential housing at the end of 2017 and of + 1.1% for 2018.
"The data average is very different in many cities - Mario Breglia, president of Scenari Immobiliari, comments - While in Milan, Venice and other cities, prices are rising sharply, in most capitals they are still firm or in a slight decline".
"The growth potentials of the Italian market - Breglia concludes - are noteworthy in residential housing, innovative service sector (such as the co-working) and in the wide range of services. Investments are needed to secure homes. It should not be forgotten that there are nearly one million homes under construction, blocked by bankruptcies or construction companies’ agreements. Taxation deters institutional and private investors. In this way, we are isolated from a context where real estate is an instrument of urban change and allocation of great resources".