Property prices across the EU increased in the second quarter of last year, but Italy continues to lag behind and saw a further decline in Q3.
Recently released figures have revealed a further drop in property prices in Italy in the third quarter of 2017. This news comes hot on the heals of the latest figures from Eurostat, the EU statistics agency, which showed that Italy was the only country in the EU where house prices dropped in Q2 of 2017.
However, the latest report from Savills, which was released in September last year, stated that stability is returning to the Italian residential property market.
“Transaction volumes are rising and prices are beginning to level out,” said the report, as the country continues to make its slow recovery from the financial crisis.
The report revealed that the numbers of transactions grew by 18% in 2016, but remained 39% below their 2006 peak, indicating there is still some way to go to recovery but the market is moving in the right direction.
Savills predicted that prices would continue to stabilise in line with a rise in transaction levels.
“Hard hit during the global financial crisis, Italy’s economy is emerging from a period of financial and political challenges,” said associate director for Savills, Paul Tostevin. “The country’s property markets suffered and residential prices fell by up to 30%. However, after several difficult years, stability is now in sight. Transaction volumes have risen 33% from their 2013 low, while prices are beginning to level out.”
Market sentiment in Italy is also improving, with local estate agents expecting the housing sector to continue to improve in both the short- and medium-term, according to the latest Bank of Italy survey.