Newsletter

• What is the 24 CReA and why was it created?

The 24CReA was created in order to highlight the holistic approach of Banca Generali's Wealth Management, which operates consistently with the philosophy of enhancing, protecting and transmitting the client's overall wealth declined in all its aspects: corporate, real estate and artistic.

Following in the footsteps of 24Re, which had already been produced quarterly for years in collaboration with Il Sole 24 Ore Radiocor and which has always been highly appreciated by clients and advisors, the Wealth Advisory Team, led by Maria Ameli, thought of expanding the thematic perimeter of the magazine by extending the newsletter to topics dedicated to the world of business and art.

The themes of the quarter:

• Corporate: SME Development, the Global Finance model, and subsidized finance as a driver of strategic business development;
• Real Estate: How to invest in Real Estate in times of crisis, weak economy and high rates, and the health of real estate for investment opportunities;
• Art: Private Banking and Art Advisory: two roads that intertwine; Collectibles: which policies to reduce risk;

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After a 2022 that showed remarkable resilience, with more than 780,000 purchases and sales, there may be a slowdown in the current year (Scenari Immobiliari estimates a decline of about 7 percent to 726,000 transactions, but Nomisma sees a -14.6 percent to 670,000).

With interest rates much higher than a year ago, which makes mortgage payments difficult for many families to afford, and with uncertainty dominating the economic and geopolitical scenario, the question is whether residential will maintain the appeal it has always had.

Also weighing on the Italian market is the scarcity of modern and innovative supply, due to the halt in construction that has characterized the last decade.

At the end of 2022, the share of transactions between private individuals related to new housing stood at about 74,000 nationwide, an increase of about ten percentage points over 2021. Thus, the market has held (2021 had marked a growth over 2020 of 34 percent, with 67,500 exchanges), but supply remains subdued compared to a rising demand.

Find out more and read the new issue of 24Re newsletter, the quarterly window on the real estate market developed in collaboration with Il Sole 24 Ore.

After a 2022 that threw up positive signals about the performance of the Italian real estate market, trends are expected to continue in the current year, albeit with a few missteps. The main factor of uncertainty for 2023 concerns inflation and the ECB's moves to counter it, although rate hikes are expected to be more moderate. Downturns are possible, with losses in value in some markets and segments, but even then, opportunities will continue to present themselves.

According to Nomisma, consumers are aware that credit conditions have worsened, with more caution and selectivity on the part of banks to protect themselves from default. At the European and Italian levels, greater selectivity is associated with lower demand for credit. In terms of numbers, this translates into a forecast on mortgage disbursements at 44.4 billion in 2023 (up from 55.2 billion last year) and 45 billion in 2024.

Sales and purchases are expected to stand at 665,000 in 2023 and 659,000 in 2024 (up from 767,000 in 2022). The growth in real estate prices and rents will hold up thanks to the fundamentals of the cities monitored by Nomisma, which puts them safe from bubble risk (a 2.7 percent increase was seen in 2022).

Find out more and read the new issue of 24Re newsletter, the quarterly window on the real estate market developed in collaboration with Il Sole 24 Ore.

The real estate market is experiencing a delicate phase in an economic scenario that is dealing with a perfect storm of war, inflation, post-pandemic and geopolitical tensions.

After two good years, real estate companies are structured and with significant financial capabilities, and demand is still robust because it is based on product innovation and not speculative, bad external conditions are trying to turn the market around.

Looking at the numbers, a report by Scenari Immobiliari shows that the European market closes 2022 with sales up 9.9 percent to 1,163 billion euros, with Italy at 139 billion. Positive forecasts, albeit with slower growth, for 2023, with 1.208 billion expected for Europe (+3.9%) and 148 for Italy (+6.5%)

Find out more and read the new issue of 24Re newsletter, the quarterly window on the real estate market developed in collaboration with Il Sole 24 Ore.

The Italian housing market, after the difficulties of the past few years marked by the most acute phase of the pandemic, has entered a new phase characterized by a favorable trend.

This is based on households' interest in housing and the increased propensity of corporate investors to diversify.

According to Nomisma, there is a consolidation of the expansive residential cycle, but the bullish dynamic also affects offices and stores, which, after 13 years of decline, are registering a positive price change.

Read the new issue of the 24Re newsletter, the quarterly window on the property market developed in collaboration with Il Sole 24 Ore!

The Italian real estate market is consolidating the recovery that began at the end of 2020 and, also thanks to the resources made available by the National Recovery and Resilience Plan (NRP), is aiming to leave behind the setback caused by the Covid-19 and to continue at a rapid pace in 2022.

The recovery is in any case linked to the gradual macroeconomic improvement initiated during the year and the consequent prospects of resilience on the employment front, as well as the materialisation of the expectations of recovery that fuel the climate of confidence of households and businesses.

According to Nomisma's latest Observatory on the real estate market, interest in homes is also on the rise, much higher than expected (more than 3.3 million households are looking for a new home, despite a not necessarily prosperous income and assets situation).

This assumes an expectation that the changes of the last two years will be structural as the health emergency wears off.

Read the new issue of the 24Re newsletter, the quarterly window on the property market developed in collaboration with Il Sole 24 Ore!