An ongoing recession and the continuing problems in the Eurozone are set to see prices of property in Italy fall again in 2012. ThatÃ¢â¬â¢s the conclusion of a recent report from the research institute Nomisma which also believes that new Government plans will also keep prices low in the near future.
Keep reading to learn more about why prices of property in Italy are set to remain competitive to new buyers.
Number of house sales in Italy set to fall to 12 year low
Italian research institute NomismaÃ¢â¬â¢s new report found that the number of house sales in Italy in 2012 is likely to be at the lowest level since 2000.
Transactions may fall by as much as 12 per cent this year to 529,306, the lowest in at least 12 years. This prediction comes after the number of house sales fell by a fifth in the first quarter of 2012. The Bologna-based institute also reported that prices of new homes fell by 1.8 per cent in the first half of this year. Prices are now 11 per cent lower than the 2008 peak, according to the study based on a survey of the 13 biggest cities in Italy.
Ã¢â¬ÅThe deteriorating economic context, coupled with more selective borrowing conditions and the widespread expectations of a wider depreciation than already recorded are the main reasons for the new halt to the real estate market,Ã¢â¬Â Nomisma said.
Bloomberg reports that ItalyÃ¢â¬â¢s economy may contract by as much as 2.4 per cent this year. The news service reports that Ã¢â¬Ëamid rising unemployment and Prime Minister Mario MontiÃ¢â¬â¢s austerity measures weighing on consumer demandÃ¢â¬â¢, home sales are set to fall further.
A Finance Ministry agency reported in June that Italian home sales posted the biggest drop since data collection began in 2004 in the first quarter of 2012. A new property levy, marking the return of taxation on primary residences after four years, Ã¢â¬ËwonÃ¢â¬â¢t be an incentive for the marketÃ¢â¬â¢ in coming months, the Agenzia del Territorio said in that report.