The construction industry hasn’t encountered a crisis of this magnitude since the 1980s. In the first trimester of 2023, sales of new apartments suffered a year-on-year drop of 72%. The number of construction permits has gone down 33% during that same period, bank credits are down 44%.
These developments in return have detrimental implications for real estate agencies. While sales suffered a 90% drop, rents are skyrocketing as the offer is far below the demand.
In conversation with RTL, Manuel Rizzo from the Real Estate Chamber noted: “There are examples of prices going up 20 to 25%. This is due to a growing number of people having entered the rent market. And many of them have high incomes and used to be able to purchase real estate.”
Rizzo urges politicians to cap the rate of real estate loans, arguing that high interests combined with the contended new rent law have scared away middle-class investors. He highlights that individuals are presently inclined to choose lower-risk options, opting to retain their funds in bank accounts instead.
