the real estate development market | Italy

1.1 Definition and scope of the study

Real estate development activities consist of designing, building, and selling real estate. This activity must be distinguished from the land development activity which develops vacant land. Thus, real estate development includes all the means and actions implemented to acquire a plot of land, construct a building and finally have it acquired by a client

The real estate development market can be segmented into

• Property intended for housing (apartment building, single-family home, etc.).
• Property intended for businesses (offices, restaurants, shops, warehouses, factories, hotels, etc.)
• Recreational and/or public properties (gymnasiums, swimming pools, stadiums, hospitals, town halls, etc.)

In Italy, the pandemic caused a slowdown in the market. Developers' turnover (in volume) is mainly for owner-occupied and investment housing. However, the turnover of companies depends on several factors, including demand from the private and public sectors, the level of public subsidies, the loan rate granted, or the financial situation of households for private housing purchases. Recently, the warehouse segment is booming as the demand for office construction is showing lower rates. In terms of sales in 2020, the volume of investments decreased by 29% compared to the previous year. Foreign investments have also fallen from 69% to 59% of the total.