According to the annual real estate price index in Italy from the company IPD, last year the capitalization of the commercial real estate fell by 4.6%. This decline was the most severe in the past seven years. However, a stable profit in 2009 of 5.7% was enough to total revenue slightly increased to 80 basis points, compared with 2.3% in 2008. Impairment of equity was due to the high level of negative returns, which determines the dynamics of the impact of the yield on the capitalization of the commercial real estate, as well as the first decline in the estimated rents -0.7%. The level of profitability was negative -3.9%. In this area most strongly reduced the yield of the property industry (by 7.8%), retail trade (by 4.5%), as well as the profitability of office premises (at -2.6%). Over the 12 months up to December 2009 the capitalization of industrial enterprises (6.4%) fell sharply due to the increase in vacancy rates, which in turn were due to stagnation in the sector of the Italian economy. Capitalization of trade and business enterprises has decreased to a lesser extent, respectively -5.4% and -3.5%, as set limits on the amount of fixed assets partially shielded both sectors from more serious losses. On this Site www.europe-re.com
In 2009, commercial real estate in Italy fell in price
29.05.2012
Homesoverseas.ru editorial office
46
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