Interest rates on loans are at historic lows
The credit market continues to recover in Italy
The usual monthly report drawn up in October by the Italian Banking Association substantially confirms the recovery of the credit market underway for months now. Interest rates at the historic lows are the main driving forces behind the demand for loans, a fairly clear effect of quantitative easing carried out by the Central Bank on the precise input of Marty Dione. A policy that is benefiting the real economy, after the credit crunch that characterized the years of the economic crisis.
To take advantage of the now evident recovery of the credit sector is also the real estate market, albeit less clearly than the rest of Europe. The banks, in fact, have resumed disbursing loans, while maintaining an attitude of prudence. In August, which is the subject of the ABI report, the growth of this type of financing stood at a remarkable + 2.6% compared to the same period of the previous year, when, however, the situation had already given proof. of significant improvements. The continuous fall in the average rate on mortgages for the purchase of property brought the August figure to 2.11%, compared to 5.72 in the same month of 2007.
Also other studies, elaborated in the same period of time, have confirmed how the continuous descent of the interest rates is driving the continental real estate market. Italy, however, would benefit less than other countries at this particular moment in the credit sector. According to analysts, in fact, on the Belpaese, a series of factors such as the overly oppressive tax system, unemployment, particularly youth, and a credit sector still too bent on itself, would continue to burden.
However, it should be emphasized that many analysts now consider a real boom in the real estate market to be imminent, which should be evident especially in the hotel sector. The residential sector is also expected to have a significant performance in 2018, with growth that should settle at just under 7%, also taking advantage of co-working growth spaces, residential property leases and services. Above all, Milan and Rome will continue to play the lion’s share in a sector that, despite the collapse of the last few years, from 2000 onwards has recorded growth in Italy of about twenty percentage points higher than the European average.