1.1 Definition and presentation
Real Estate Agencies are intermediaries which facilitate the reconcile between supply and demand. In order to enable market equilibrium within the housing industry, real estate agents oversee negotiations between sellers and buyers or owners and tenants.
Real estate agencies act for two types of clients:
- Residential customers: the majority of real estate agencies are dedicated to individuals looking to buy or rent houses, land or garages in urban and rural areas.
- Commercial customers: a minority (less than 10%) of real estate agents are focused on the search and match of commercial real estate - offices, industrial land, factories and warehouses or shops.
There two major forces influencing the trend of the market:
- Purchase and rent of housing: the real estate industry in Italy has shown weak signs of recovery, the price evolution of housing is indeed among the worst in Europe.
- Fierce competition: alternative distribution channels – e.g. Internet and franchisees. A progressive number of Italians are using the internet as an alternative searching tool, leveraging on the easier and faster comparison between housing structures.
Consequently, real estate agencies face considerable threats within a market that is additionally not performing well.
1.2 Italy’s position within a strong European context
According to Agenzia delle Entrate - Italian Tax Agency - the number of transactions within the housing market in **** generated a turnover of approximately **.* billion euros. The contribution to the national economy deriving from the housing market in Italy grew by *.*% between the years ****-**** – the highest percentage increased experienced at ...
2.1 Demand overview
According Centro Studi di Abitare Co. demand for new homes is developing, the first quarters of **** registered a *,*% sales growth, whereas demand for existing homes is not experiencing positive signs.
The number of housing transactions is representative of the cyclicity of the market. Based on the **** reference index - number of ...
2.2 Demand determining factors
Quantitative determining factors
Mortgage interest rate Italy, ****-****, in % Source: ****
Mortgage interest rate has been experiencing a decrease since ****, which brought its value to roughly **% less in ****. The decrease of the interest rate is impacting the house loan requests. Data observed from the intermediaries participating in the Bank Lending ...
3.1 Organization and dynamics of the market
The number of independent real estate intermediaries reached in **** approximately **,*** - figure that increases to roughly **,*** when considering franchising activities.
Following the growth of real estate transactions, the number of individual operators active on the Italian territory increased since ****, although in the pre-crisis period the number was close to ** thousand. [***] Franchisees ...
3.2 Independent versus franchising
In Italy the real estate agency market remains dominated by independent professionals, grasping roughly **% of the total market.
The remaining percentage is in the hands of franchisee, whose incidence has been progressively increasing in the last few years.
Geographically franchising activities have the largest weight over total agents in Campania, with ...
3.3 Digital Revolution: threat or ally
In Italy **% of the population utilizes the internet, that translates into approximately ** million active users. The progressively increasing online pool impacts undoubtedly the evolution of traditional industries. [***]
Real estate agencies can either fear the web or embrace it. The first outcome results from lacking to efficiently leverage the tool and consequently ...
3.4 Rent versus Sale
In **** the situation was extremely different: the number of traditional houses for rent was more than double the number of short terms rentals and close to **% higher than the purchased real estate. Just two years later, short term rentals experienced a boom that brought its amount to *** thousand (***).
Rent versus sale Italy, ...
4.1 Real estate agencies’ beneficiary offerings
Real estate agents’ earning is based on:
- Fixed amount, an amount one is entitled to independently of the sales performance.
- Commission, a percentage dependent on the number of closed deals.
Italian legislation does not regulate real estate commission amount, the latter is generally at the discretion of the agency.
4.2 Weak price evolution
Following the accommodation index price IPAB (***) one can observe a slower evolution for housing prices.
Istat data confirms that since **** Italy has not shown a strong price growth, except for **** alone, which marked a positive price variation, IPAB has exclusively been negative.
Residential property price index Italy, ****-**** Source: ****
Italy and ...
4.3 Artificial Intelligence
The real estate industry is increasingly being affected by the technological revolution. Artificial intelligence is forecasted to impact greatly the business model of many organizations.[***]. According to Osservatori Digital Innovation **% of organizations adopted AI in their systems in Italy in **** and roughly **% are planning on doing so.
AI adoption in organizations Italy, ...
5.1 A progressively more regulated profession
Real estate agents are qualified to exercise the profession exclusively after enrollment in the Chambers of Commerce for the role of brokers, business agents.
Following art. * of law ** **/**/**** there are two alternative requirements necessary to become a real estate agent:
Second degree diploma, training course and examination. Second-degree diploma, practice for ...
To keep reading, buy the full research
What is in this market study?
- What are the figures on the size and growth of the market?
- What is driving the growth of the market and its evolution?
- What are the latest trends in this market?
- What is the positioning of companies in the value chain?
- How do companies in the market differ from each other?
- Access company mapping and profiles.
- Data from several dozen databases
This market study is available online and in pdf format (30 p.)
- Consult an example PDF or online
1 sector analyzed
in 40 pages
The stationary toilet market - France
Publicado en 12/01/2022 by Client anonyme - Ce client a souhaité rester anonyme
A highly quantified study. Despite the investments made by local authorities, the mistrust of public toilets is confirmed. The smart toilet market has not yet taken off.
Hello Geoffroy, Thank you for your feedback and we are delighted that this study has given you a good overview of the market.
The public lighting market - France
Publicado en 27/10/2021 by Stéphane Naville - AXIONE SAS
Good level of synthesis allowing to go to the essential of a market (supply, demand, actors) quickly!
Hello Stephane, Thank you for your feedback, we are very happy if our study could save you a precious time. :)
The veneers and wood panels market - France
Publicado en 08/09/2020 by Client Anonyme - Ce client a souhaité rester anonyme
A synthetic and easy to read study, usable for us.
Hello, Thank you for your feedback.