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Malta Sees a Decrease in Property Prices

Malta Sees a Decrease in Property Prices


The prices of real estate in Italy saw a decrease in the second half of 2008 according to the estate agent group Tecnocasa.

This is caused, states the report, by a bigger property offer on the market, a far more careful demand and a longer sale time.
The Italian property market, in fact , has slowed down also because the audience have lengthen their decision time, pushed by the announcement about the Italian economy and by the unsureness of their spending budget availability. Furthermore, the tightening of credit distribution guidelines adopted by the Italian banks, despite they haven't long been hit as much hard as in all the other countries by the market meltdown, has created great difficulties for those buyers who don't have an enormous cash availability and need a bigger mortgage. This deficit of cash flow has caused tougher negotiations between buyers not to mention vendors, leading the deals to be closed at a smaller sale price.
The property prices have seen a stronger decrease in all the regional capitals (-3. 9%) followed by the biggest city's outskirts (-3. 8%) and eventually in the biggest cities (-3. 6%). Within the biggest cities the major decrease has long been registered by Palermo (-4. 9%), Bologna (-4. 6%) and Naples (-4. 4%). Rome has registered the decrease of 3. 6% and Milan of 2 . 4%.
As for the biggest city's outskirts the major price decline has been registered by the outskirt of Bologna (-5. 4%), followed by Rome's outskirt (-4. 6%) and the outskirt regarding Naples (-4. 4%).
To sum up the data, the major rate decrease has been registered in the main cities of the South (-4%), followed by the ones in the North (-3. 9%) and then through Central Italy (-3. 7%)
But the second half of 08 has recorded also a coming back of the investments on property. Ever more investors are running away from unsure personal investments and are heading towards property investments, confirming the house and property market as one of the most secure investments and it as the favorite through Italians.

The expert's feeling is that in the first of all months of 2009 there has been an increase in the avenir condo interest, pushed not only by lower interest rates but also by the recognition that the property market has undertaken a new direction and also the property price decrease offers great investment opportunities.

From the second half of 2008 the main key used to turn the negotiations into sales was, once again, the price. Nearly typically the totality of the potential buyers pay ever more attention to the property superior quality and is ever more focused to get a good value for money. This has driven a stronger decrease of prices in resale properties compared with in restored and new properties. Medium and lower end properties have registered the strongest price decrease, unlike prestigious properties have better hold their prices, however also for this range of property the buyers are more mindful, especially if the property doesn't sutisfy all the buyer's needs. Therefore the caution before buying has hit all the building ranges.
The second half of 2008 has seen the upswing of the property demand that in the previous semesters had smaller. The post summer negative trend of financial trading markets has set a return of interest in property ventures that is enduring also in the first months of 09. The investors have diverted their capitals towards real estate that could provide an income, such as properties to be rented because holiday homes.
The analysis of the demand in Jan 09 show that in the Italian biggest cities the better requested property type was a two bedroom place (house or apartment) chosen for the 35. 7% of your times, followed by one bedroom property (28, 6%) and also three bedroom property. The average price ranges of the property question is between EUR170, 000 and EUR249, 000 (24%) followed by the price range between EUR250, 000 and EUR349, 000 (21, 6%). The main property type offered by market trends is the two bedroom property (33. 9%), followed by one particular bedroom property and three bedroom property (22. 8%).
It is difficult to see what will happen during the next many months, much will depend on the trend of the Italian economy plus on the bank's behavior. The experts predict that for the future months we will see a further decrease in the sale's volume as well as in the property prices. Especially the decrease in property rates along with cuts in the interest rates have given confidence from the potential buyers who start to see that the period offers good chances to buy a property in Italy.

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