Real estate auctions: numbers and trends for 2024

The property auction market in Italy showed signs of improvement in the second quarter of 2024, as noted in a joint study by Reviva and Immobiliallasta.it. This slight recovery is visible in both the number of auctions and average property prices, although the sector continues to be impacted by post-pandemic dynamics and credit quality.

Real estate auctions

Slight recovery There were 33,538 auctions recorded in the first quarter of 2024, down 22% year-on-year. However, in the second quarter the decline was less significant - 18%, and the total number of auctions was 34,736. Overall, for the first half of the year the decline averaged 20%, indicating an improvement compared to the first months of the year. May was particularly strong, with 13,351 auctions the highest number for the half year, compared with the monthly average of 11,379. The total value of properties at auction was €7,906,295,801, down 20.7% on €9,968,690,595 in 2023.

Differences between types of objects at auctions

The most significant decline was in residential real estate, with a decrease of 9%. On the contrary, non-residential real estate showed an increase of 14%, and land plots - by 4%. This data is important because the residential real estate sector is typically the most liquid and tradable sector. Auction formats continue to evolve: since 2020, with the acceleration caused by the pandemic, electronic auctions have become increasingly common, currently accounting for 46% of the total.

Stable average prices for residential real estate

Average residential property prices remained virtually unchanged, falling from €84,688 to €84,645, a minimal change of 0.1%. Non-residential properties showed a decrease of 6.1%, the average price fell from €177,914 to €167,057. Land registered a decrease of 9%, the average price fell from €104,778 to €95,341, which is less significant due to volatility prices for this type of objects. According to data from Immobiliallasta.it, in the second quarter of 2024, prices per square meter for detached houses at auction increased by 3%, villas showed an increase of 14%, while apartments registered a decrease of 0.9%. For non-residential properties, the market remained stable, with significant changes only for less common types such as palaces and hotels. Commercial real estate showed a 15% increase in prices compared to the previous quarter.

Analysis and future prospects

As a result, the residential real estate sector shows a slight recovery compared to the first quarter of 2023, while non-residential real estate remains stable. The decrease in the supply of residential real estate and the increase in non-residential real estate reflect current market trends. The outlook for the coming years is positive, with the total number of auctions expected to fluctuate between 120,000 and 135,000 by the end of 2024, with the downward trend slowing and stabilization expected in 2025. The process of putting real estate up for auction in Italy takes about two years. With loan quality deteriorating and the share of defaulted loans rising, the number of auctions is expected to rise again from 2025/26, although nowhere near 2019 levels.