'Decline in property auctions in Italy in 2023: reasons'

The decline in real estate auctions in Italy continues, with 114,846 auctions registered in the third quarter of 2023, 21% less than the 144,731 registered in the third quarter of 2022, and even 38% less than in the same period of 2019, fully in line with the 21% decline already registered in the second quarter of this year. This is the data of the latest report of Reviva.com, a company specializing in the revitalization of real estate auctions. "The forecasts made in the previous quarter are confirmed at the moment," comments Giulio Licenza, CBDO and co-founder of Reviva: "by the end of 2023, we expect the number of auctions to be between 150,000 and 160,000. After several years of declining NPE inventories and declining defaults, analysts forecast, albeit''35.3%, resident - 53.3%, land - 11.4%, which corresponds to the historical composition of properties at auction.

With regard to geographical distribution, the north of Italy occupies 33.2% of the procedures, the center is second with 25.7%, followed by the south (24.5%) and the islands (16.6%). This is a trend that has continued since 2019, when the share of the north was 43%, decreasing by 23.5% from 2019 to the present in favor of an increase in the share of the south and the islands. This difference is due to historical differences over time''closing procedures in the courts.

In addition, telematic sales continue to grow, accounting for 40%, up from 37% in the previous year, while only 33% take place in mixed mode and 27% at the seller. This trend is not favorable as purely telematic auctions are extremely difficult and contribute to an even greater likelihood that auctions will be left without buyers and therefore property values will decline.