Italian Residential Snapshot | H2 2023
The Italian Residential Market Performance in H2 2023
- Francesca Fantuzzi
- Flavia Ferri
Key takeaways:
The Italian economy is expected to grow by 0.6% in 2024
Inflation is slowing down and there are signals that interest rates will fall towards the end of 2024.
Italy housing Market affected by the increasing mortgage cost
After the record performance in 2022, residential sales (NNT) decreased by 9.7% in 2023, as a consequence of the full extent of the interest rate hiking cycle fully priced into mortgage costs. Despite this, Italian residential market fundamentals are confirmed, and the 2024 scenario seems encouraging, with fewer financial constraints.
Multifamily and PBSA continue to attract investments across Europe
Living & Healthcare accounted for 26% of direct real estate investment across Europe in 2023; multifamily and student continue to attract the majority of investment. In Italy, it’s an emerging asset class with increasing share among other sectors (11%), with significant investors’ appetite for PBSA, Build-to-Rent and Built-to-Sell sector.
