the real estate agency market
Italy

Update 20/12/2019

MARKET SUMMARY

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.

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Michela Grimaldi

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Guillaume Obert

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