{"id":1483,"date":"2024-06-15T16:54:18","date_gmt":"2024-06-15T16:54:18","guid":{"rendered":"https:\/\/fgnconsulting.com\/?p=1483"},"modified":"2024-08-12T08:42:45","modified_gmt":"2024-08-12T08:42:45","slug":"ecb-cuts-rates-real-estate-on-the-upswing","status":"publish","type":"post","link":"https:\/\/fgnconsulting.com\/en\/2024\/06\/15\/ecb-cuts-rates-real-estate-on-the-upswing\/","title":{"rendered":"ECB cuts rates: real estate on the upswing?"},"content":{"rendered":"
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On 6 June, the attention of investors and traders turns to the meeting of the European Central Bank (ECB), where an interest rate cut of 25 basis points is expected. This manoeuvre, widely anticipated by analysts, promises to have a significant impact, especially on the real estate market. Two industry experts, Francesca Zirnstein and Emiliano di Bartolo, share their perspectives on the upcoming economic scenario.<\/p>\n<\/div><\/div>\n\n

The Analysis by Francesca Zirnstein<\/h3>\n\n

Francesca Zirnstein, Managing Director of Scenari Immobiliari, points out that the pending rate cut has already started to produce positive effects in the banking sector, suggesting a future easing of monetary policy. It reports how loan rates have reached 4.5 per cent in 2023, with a considerable increase in instalments for both new fixed and variable rate loans. Zirnstein points out that more than 60 per cent of the mortgages disbursed in 2023 were fixed-rate, reflecting the tendency of Italian households to prefer loans with initially lower instalments.<\/p>\n\n

Despite a 9 per cent decrease in real estate sales compared to 2022, Zirnstein remains optimistic about the market dynamics. He expects that, with easier access to credit, the positive trend will continue and consolidate, especially favouring investments in the semi-central areas of large cities and well-connected suburbs.<\/p>\n\n

Perspectives of Emiliano di Bartolo<\/h3>\n\n

Emiliano di Bartolo, Managing Director of G-Rent, shares a similar analysis regarding the performance of the real estate market. He emphasises that although rising rates have dampened the mortgage market, it has not stopped real estate investment, which exceeded 700,000 sales in 2023. Di Bartolo is particularly interested in the effects of future rate cuts, which he believes will further stimulate the market, especially if the ECB makes further reductions.<\/p>\n\n

The proptech expert predicts that with at least three or four consecutive rate cuts, the real estate market could experience a new growth phase in both sales prices and rents. However, he warns about global macroeconomic variables, such as the situation in Ukraine and the US elections, which could significantly influence market performance.<\/p>\n\n

Conclusion<\/h3>\n\n

The ECB’s possible rate cut represents a potentially decisive turning point for the European real estate market. Experts are cautiously optimistic, expecting an increase in activity in the sector, stimulated by more favourable credit conditions. However, it remains essential to monitor the evolution of global macroeconomic conditions that could alter current projections.<\/p>\n\n

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the European Central Bank could cut interest rates by 25 basis points, a much-anticipated event that could significantly affect the housing market. Francesca Zirnstein already sees benefits in the banking sector and anticipates growth in the real estate market due to more affordable credit conditions. Emiliano di Bartolo, while confirming these expectations, remains cautious due to possible impacts from international geopolitical and political situations. Both experts foresee a potential revival of the real estate market, conditioned, however, by the evolving global macroeconomic environment.<\/p>","protected":false},"author":1,"featured_media":1485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[62,66],"tags":[],"class_list":["post-1483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-2","category-english"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t