The real estate market in Europe will revive by 2024, says Breglia (Scenari Immobiliari)

The real estate market in 2023 will be far from a post-pandemic upswing, and European and Italian areas will end the year with a number of negative indicators. But the future will be rosier, although no boom is imminent. Here is a snapshot of the European and Italian real estate market, captured in the "European Outlook 2024" presented at the 31st Real Estate Forum. President Mario Breglia looks at the outlook for real estate in the coming years.

According to the research center

The continent's five main countries (Italy, France, Germany, Spain, UK) will end the current year with a turnover in real estate of just over 900 billion euros and a decline of 1.2 percent compared to 2022. Germany sees a 5.2 percent drop (especially in the residential sector), and other countries are also seeing modest trends.

"After the pandemic, we have had two exceptional years in Europe," explains Mario Breglia, "with an increase in transactions in all real estate sectors and not too significant price increases. It was a very favorable environment that will not be repeated in 2023, however. Transactions have fallen, prices remain stable, some countries such as Germany have experienced a collapse of the residential real estate market, while in other countries the situation has remained stable but with a negative trend. "

Why is this happening?

"There has been little construction during these years," Breglia replies. "We are still living in a post-coronavirus period characterized by a halt in construction projects, which has slowed the production of new projects in all countries and therefore slowed demand growth. Added to this is the rising cost of money with higher mortgages for families and difficulty for builders and companies in obtaining finance at lower rates, creating a disincentive for construction companies. "

This is our nation's market with a 3.6 percent growth of over 144 billion in turnover.

"2024 should be a better year for the European and Italian real estate market," states Breglia, "it won't be like 2021, but will remain worthwhile, with European markets returning to positive territory with rates between 2 and 4 percent. Italy will grow by almost 2 percent and approach 150 billion euros in turnover. It won't be a great takeoff, but given the overall environment, the real estate market will remain one of the most reliable investments for families and companies. "

"As for demand for real estate," Breglia concludes, "the outlook is positive. Post-Covida demand is present, it's strong, and it's demand for improvement. People want nicer homes, quality offices, innovative shopping centers, new logistics. Anything that is new and of high quality will thrive, unlike anything that is not. And this trend will continue for several more years.".