Italian Property prices are expected to drop by 7% to 8%

Italian Property prices are expected to drop by 7% to 8% starting the second half of 2009, says Nomisma, an economic think-tank, noting that residential sales dropped by 15% in 2008. Housing sales are also expected to contract a further 8% to 10%. Nomisma expects the property market to stabilize in 2010.

Italy’s housing market has remained resilient, despite falling markets in most other developed countries. House prices in H1 2009 rose by 3% from a year earlier, according to the index published jointly by the Bank of Italy (BoI) and the National Statistical Institute (Istat). When adjusted for inflation, house prices rose by 1.9%.

Italian house price rises peaked in 2002, rising 12% (9.2% in real terms) from a year earlier. House prices rose by an average of 6.5% p.a. (4.1% in real terms) from 2003 to 2006, then by an average 4.6% p.a. (2% in real terms) from 2007 to 2008.

Read the full article at Italy - house price declines expected soon! (Globalpropertyguide.com)