Italians continue to invest in real estate: real estate transactions.

At the end of 2023, the Revenue Agency reported real estate sales and purchase transactions of 709,591, a decrease of 9.7% compared to the previous year. According to the analysis of the Tecnocasa Research Department, after the successful results of 2022, the expectations of a decrease in transactions are confirmed, remaining at interesting figures and showing a dynamic market with a growing number of investors.

Real estate transactions in Italian cities

According to Tecnocasa, capital cities ended the year with 221,144 transactions, a decrease of 10.7% compared to 2022, while non-capital cities saw a decrease of 9.2%, from 537,857 to 488,447, which is a slightly better result. Among the major cities, Naples had the smallest decline at -4.4%. The worst result was in Bari, with a decrease of 19.1%.

• If we limit the analysis to the fourth quarter, Bari shows the largest decrease of 15.7%, while Palermo decreased by only 1.6%.

Forecasts for the current year

Forecasts for this year point to a further decline in transaction volumes, although we see increased confidence in those approaching purchase in early 2024 in light of improvements on the credit front.

Real estate purchase for investment

According to an analysis by Tecnocasa Research Group, 19.6% of real estate transactions in the first half of 2023 were for investment purposes, slightly higher than last year's 16.8%. The rise in inflation is encouraging investment in real estate, which is always considered a great way to invest.

• The return of tourist flows has also influenced an increased interest in acquiring properties for tourism businesses, both in the cities themselves and in tourist destinations.
• The analysis considers long-term and non-seasonal rentals.

What is the return on investment in real estate

Rental rewards remain attractive: for a one-bedroom apartment of 65 square meters in the major Italian cities this amounted to about 5.2%, the leaders in terms of high incomes are: Genoa with 6.6%, Palermo with 6.4%, Verona with 6.3%.

• Those who invest in real estate also aim for an increase in property value, and in recent years we have seen a rise in prices.

Investing in primary and secondary housing

As for the national vacation home sector, there is no significant change from 2022; last year, 7.1% of transactions involved this segment. The percentage of residents of large cities who move to the suburbs to buy a primary residence is growing: in the last survey, 23 out of 100 residents chose to buy outside the city.

• The average age of buyers in Italy is increasing, from 42.7 years in 2022 to 43.7 years in 2023.

The most popular attractions among Italians

Among major cities, Milan ranks first in the purchase of housing by persons under 34 years of age (37.5%), followed by Turin, where persons under 34 years of age make 34.4% of transactions.

• Apartments with three rooms remain the most common in Italy (33.9%), followed by independent and semi-independent solutions at 21.2%.