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25 February 2013
According to EuroStat, the Statistical office of the European Union, property prices in the Eurozone went down by 2.5 % in the last trimester 2012 compared to the previous year. In Italy the quota is 3,2 %.
Statistics published by the Azienda del Territorio show that the Italian property market has been in “free fall” since the end of 2006 and has hit rock bottom at the end of 2012. According to the Azienda del Territorio the property market is likely to remain static for two more years before there will be signs of a recovery.
At a first glance these figures may present a positive development for prospective buyers, however, the fact that banks are no longer giving away loans the way they used to do hides a further problem and makes the recovery of the property market much more difficult. Last year alone 43 % less credits were granted! Unless a property is being financed by a minimum of 50 % of own capital, chances to be granted a credit are comparatively low. However, almost as many as 80 % of prospective buyers rely on a mortgage to finance their property, the property market is stagnating despite falling prices.
This can also be seen in the time it takes to sell a property, which is constantly increasing: in the second half of 2002 the average time to sell a residential property amounted to 3,4 months, for the second half of 2012 one had to expect an average of 7,7 months! Shops sell after an average selling time of 8,8 months and offices after as long as 9,5 months! There is a new trend which counteracts this development: Home Staging – professionally doing up a property before it goes on sale. Unlike current selling times of 7,7 months a property which has been done up by a home stager sells on average just after 37 days!
The stagnation on the property market obviously can also be felt in the Lake Garda region. 2013 is certainly a good year to realize a dream one has cherished for a long time: one’s own property at Lake Garda. However, one should bear in mind that despite the crises Lake Garda is a popular holiday destination and properties with lakeview still come at a price!
(Sources: Arena.it; Nomisma; Azienda del Territorio; Mutuionline)