Real Estate Market
What will the real estate market be like in 2021? What are the forecasts for those who have to invest in this important market sector? How will the sales prices and rental prices in the new year in which the elections will be provided? Based on the market trend, you can have a fairly precise idea of what awaits us this year.
Table of contents
- The real estate market and the recovery announced
- Reform of the cadaster 2021
- Real estate sales price trend in the rest of the world
- Conclusions on the real estate market
The real estate market and the recovery announced
The recovery that began in 2019 will continue in 2021 leading to a revival of the real estate market. After a crisis that lasted more than ten years, the exit from the tunnel is very close. Forecasts indicate an increase in property prices and in sales. Prices will finally outstrip inflation.
Download Real Estate Values Forecast 2021
The value of the brick becomes a good investment again. The trend of 2021 will be to aim for income from real estate. Urban development and expansionary monetary policy will bear fruit. As soon as the reforms useful to simplify bureaucracy and regulations are implemented, investors will point to our beautiful country. A reduction on rental taxation is also expected with relative amendments to the legislation on the matter for a relaunch.
The forecast declares a 6.2% increase for 2021, although it differs by region. The recovery does not have the same speed everywhere but there is optimism in the air. For the cities of Venice and Milan, net and decisive increases. The rest of Italy is constantly increasing with some stop zones.
The demand for rent is growing, banks are struggling to grant mortgages, very high and prohibitive taxes do not facilitate buyers. The job crisis makes the market more uncertain and the situation is reflected in the population. There will finally be a significant decrease in the percentage of vacant properties.
Reform of the cadaster 2021
Finally, there will be a change for the Italian cadastral income. Calculated in the pre-crisis period, the cadaster data has never been updated. Finally, in 2021 there will certainly be a downward adjustment of about 20%. The consequence will also be a very high decrease in the related taxes. This will finally get the brick market moving.
Mario Broglie, president of Scenario Immobiliari, speaks clearly and reveals that there will be an economic recovery. It will all be different from the peak that occurred between the seventies and nineties. Growth will be slower and more steady.
Sales Volume Forecast 2021
Even if real estate prices are falling, transactions are increasing, by over 16%. The real estate market has grown by as much as 23 percentage points in two years, this year it will continue to rise steadily. The trend is finally positive.
The taxes that affect the market
It is not only the IMU that makes investment in brick difficult, even the taxes on waste are very high. The state imposes too high management costs for the average Italian. Families can often afford the purchase but not the maintenance of the property. It is hoped that with the cadastral reform this aspect will change as soon as possible.
The most common and almost unique method for buying a property is the mortgage. But given the recent failures of many banking institutions last year, is the mortgage a scam or a guarantee? Is the capital of the brick protected or damaged by this purchasing system? Precarious employment does not invite the opening of a first home loan and the fear of being bound by a mistake block many Italians. This obstacle often means that the investment is not for speculative purposes but only for housing.
Paradoxically, the only market that has not experienced a decline is that relating to luxury properties. Indeed, the market is constantly growing. Those who invest and have the opportunity to do so, focus on safety. Thanks to the drop in prices due to taxes, which pushes owners to resell at a lower price, more savers have been able to afford properties of this level. Better to invest in something that can over time constitute a guarantee rather than a risk.
Real estate sales price trend in the rest of the world
Rising prices for all the top European nations for an average of 9% are expected for 2021. The biggest beneficiaries are Spain and Germany with peaks of 4%. The US stuck at 8% denotes a slower recovery.
Great rise for the corporate sector
Amsterdam, Stockholm and Berlin will be the leaders of the European market in this sector with great growth. They will finally recover the problems caused by the past crisis, Barcelona and Madrid. Little growth in Eastern markets with little demand, except in Prague where there is a lot of demand. Lagging behind London will have a decline in both values and demands.
Greece is betting everything on the passport
A great idea that of Greece which is selling properties internationally that will guarantee the buyer a Greek passport. 513 million investments have already been collected in just over three years with the forecast of a large increase in 2021. 43% of the investors are Chinese, 18.6% Russian and 8.4% Turkish.
Conclusions on the real estate market
In anticipation of the cadastral change, the advice is to move to buy. Big investors are always ready to use their liquidity by cutting the legs of the small ones. Liquidity must be used this year by investing in brick with more security. The market is currently stable and rising.