Italian Residential Snapshot | H1 2023
The Italian Residential Market Performance in 2023 first semester
- Francesca Fantuzzi
The Italian economy is expected to grow by 0.8% in 2023
In Q2 2023 the Italian economy posted a GDP decrease of -0.4% QoQ while increased by 0.4% YoY. Looking ahead, latest market projections indicate an average GDP growth of +0.8% in 2023. The impact of high inflation and interest rates persists, but there are a few signals of improvement.
Italy housing Market affected by the increasing mortgage cost
After the record performance in 2022 - the highest reading since 2011 – residential sales (NNT) decreased by 12% in H1 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
Living is largest real estate investment class in Europe
Living accounted for 32% of direct real estate investment across Europe in Q2 2023; multi-housing (multifamily and student) was the largest for the first time on record making up 27% of the total.
In Italy, Residential it’s an emerging asset class with increasing share among other sectors, with significant investors’ appetite for the Build-to-Rent and Built-to-Sell sector.