Market Trends of Italy Manufactured Homes Industry
This section covers the major market trends shaping the Italy Manufactured Homes Market according to our research experts:
Increasing Residential Real Estate Prices Demanding More Manufactured Homes Construction
- In December 2022, the highest asking price for a property for sale in the Trentino Alto Adige region was EUR 3,058 (USD 3291.02) per square meter. On the contrary, the lowest price in Italy is for a property in the Calabria region, i.e., EUR 920 (USD 990.10) per square meter. During the same month, the asking price for rental properties in Lombardia was the highest, at EUR 15.50 (USD 16.68) per month per square meter. The Calabria region had the lowest average asking price, with only EUR 6.73 (USD 7.24) per month per square meter. The Bank of Italy's Housing Market Survey, released in August, noted a softening in the Italian housing market, which is a significant change as house prices in Italy appeared to stabilize in the second quarter of 2022.
- Rising energy prices, particularly gas, and a high-interest-rate environment are the main factors slowing the Italian housing market. Russia has been withholding gas supplies to Europe in retaliation for Western sanctions imposed in response to its invasion of Ukraine, pushing up energy prices. As a result, consumers continue to face high electricity bills, impacting their purchasing power even further. According to these estimates, higher energy prices and the invasion of Ukraine are expected to put downward pressure on the number of potential buyers and house sale prices.
- Italy is going out of its way to attract inward investment, aided by Prime Minister Draghi's pro-business agenda and an innovative flat tax. The country already has 17,359 ultra-high-net-worth individuals (those with more than USD 30 million), which is expected to rise by 14% over the next five years. A survey of over 1,000 global buyers ranked Italy as one of their top five second-home destinations, with the United Kingdom and the United States being in the top two.
Understand The Key Trends Shaping This Market
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Increasing Home Ownership in Italy Driving the Market
- People are more interested in a simple, slower, cheaper, and higher quality life in small towns with good train connections to larger cities. "South working" is the new buzzword to describe the movement of people from Italy's northern cities to the south's marginalized areas. Many of these people have the provision of working from anywhere, including many Sicilians who have returned to the island since the pandemic. Low-cost real estate is also a motivator. Cammarata is one of several towns in Sicily that joined the "Case a 1 euro" (One Euro Houses) initiative, which began in Gangi and Salemi (both of which claim to be the first) in around 2010. Since then, hundreds of abandoned privately owned houses have been sold for upwards of EUR 1 (USD 1.08)
- According to Danilo Romolini of Romolini Immobiliare, prime property in the most desirable tourist areas such as Taormina, an ancient clifftop town on Sicily's east coast, and Ortigia, an island joined to the Sicilian mainland at Syracuse, can cost around EUR 3,000 (USD 3228.60) per sq. m. However, since the pandemic, Sicily's house prices have fallen by 3-4%, with the market "flooded" with mid-range apartments. Mussomeli, an ancient hilltop town of 11,000 people in central Sicily, has drawn buyers from 18 countries, including many from the United States, Australia, and China.
- Americans are on a spending spree, taking advantage of the dollar's current strength and fueled by a sense of adventure. They are frequently looking for properties with vineyards, which are a must-have for new second-home buyers.
