The crisis of Fiat and consequently of its related industries could weigh on the real estate market.
The sector operators interviewed by Nomisma for the preparation of its market observatory expressed some fears for the future of the brick and mortar sector. Fears, however, modulated and modulated depending on the sector we are talking about.
Housing market. For the residential universe it seems that the crisis is not imminent. It is probable that the brick and mortar market could reduce its appeal starting from the end of 2003, in the event that the level of unemployment were to increase significantly, and therefore disposable income were to be reduced in a truly drastic manner. In case one wants to believe that this hypothesis is remote, the market prospects remain positive and the number of trades should increase again in 2003-2004 (+0.9%).
The momentum is a consequence of the further reduction in interest rates: after a two-year period marked by a record trend, in 2003 the level of trading should continue to remain high (in 2002 there was a +16.2%). The demand in this particular range of properties is determined by the performance of the economy in general and of industry in particular: business property negotiations are linked to the need of industries to adapt their warehouses to new production needs, or to the need to locate the company in a better served location. There seems to be some clouds on the horizon for the commercial sector.
The slowdown in consumption, if it were to continue into the new year, could lead to a reduction in rents, and therefore, a decrease in the average level of returns.
source: Real Estate Observatory
Grimaldi Padua
Padua - 35137 - Via G. Matteotti, 27
e-mail: padovacentro@grimaldifranchising.it
Tel. +39 49 663 033 - VAT number 05301660287
Grimaldi Cadoneghe
Cadoneghe (PD) - 35010 - Via G. Franco, 2/A
e-mail: cadoneghe@grimaldifranchising.it
tel. +39 049 88 736 56 - VAT number 05322440289