Unimpresa: mortgage growth despite challenges
The Italian market for mortgage transfers has seen significant growth in the first half of 2024, with a 59.4% increase compared to the same period last year. According to Unimpresa’s research center, total transfer volumes rose from €265.4 million to €423 million, reflecting an increase of €157.6 million. This boost is attributed to heightened competition among banks and a gradual reduction in interest rates driven by the ECB.
Regional dynamics: where growth is strongest
Northern Italy has led the recovery. The Northwest region recorded a 71.9% increase, with Lombardy emerging as the leader with a 66.7% growth (+€60 million). The Northeast followed with a 70.5% rise, spearheaded by the Trentino-Alto Adige, where mortgage transfer volumes soared by 240%.
In Central Italy, growth was more moderate (+39.5%), while Southern Italy and the Islands experienced mixed results. Regions like Campania (+70.8%) and Sicily (+52.4%) saw notable increases, but others, including Molise and Calabria, showed stagnation.
The paradox of declining mortgage stock
Despite the rise in transfers and new mortgages (+14.9%), the overall mortgage stock declined by 1%, from €425.3 billion to €421.7 billion. The decline was most pronounced in the Northwest and Central regions, with drops of -1.1% and -1%, respectively. Key regions such as Lombardy and Lazio, while central to the market, also reported slight decreases.
ECB policies and the real estate outlook
The ECB’s aggressive interest rate hikes since 2022 have significantly impacted mortgage costs. Unimpresa President Giovanna Ferrara highlights the need for an interest rate cut to stabilize the real estate sector. Ferrara emphasizes that real estate is a pillar of Italy’s economy, vital for economic growth and social stability.
While mortgage transfers indicate recovery, the real estate sector still faces major challenges linked to monetary policy and regional disparities. Lowering interest rates could be key to supporting households and businesses. What are your thoughts? Share your opinion below.
