Italians see home purchase more as a necessity than an investment
Italians and their love affairs with their homes is still as strong as ever, but is changing over time.
The latest Nomisma survey on Italian households and real estate finance shows a clear trend towards a change in attitudes towards real estate as an asset. Potential demand remains high (equivalent to 2.3 million households), but “is seen as a family necessity rather than as an investment (in 93.9% of cases), despite favorable asset allocation conditions (fair real estate values and low interest rates),” the report says. At the same time, Italians are gradually moving away from the attitude that real estate is a safe haven investment, especially among the younger generations. Instead, sharing economy concepts like co-housing, hosting and so on are taking hold.
A large portion of Italians are divesting their capital invested in real estate. And with these sums they finance new purchases if they have to change home. Purchases are financed not only just by mortgages, but also from the liquidity that comes from choosing to cash in on their existing investments for over 1.3 million families, according to Nomisma.
However, the survey confirms that households continue to be dependent on credit: 33.3% of households intending to buy a home will use the banking channel (758,000 households), while 41.7% will take out a mortgage (950,000). Despite an improvement over the years as Italy recovers from the financial crisis, families still show signs of a lack of confidence.
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