Where do you see Italy in the real estate investment cycle?
If we compare the investments cycle to the economic one, then made by note phases: expansion, boom, recession, depression and recovery, we can argue that we are at the beginning of the last phase (recovery), because at this point are also the fluctuations of the profitability expected by the investment’s projects.
Do you see more international investors becoming more active? What do they look for in Italy?
Certainly during this year, several operations that turned the tables for several months, were finally “materialized”. The interest of the investors rose substantially for two reasons: increased perception of political stability and increased marginal efficiency of capital employed.
Should investors continue to look at Milan & Rome? And which are the most interesting secondary cities?
Milan, Rome, but also Venice and Florence. Verona, Turin, Bologna and Genoa are not far behind the BIG FOUR. In the leisure area, more than on the city, the focus is on the regions, from north to south: Tuscany, Sardinia, Apulia, Sicily.
Hotels: Will the sector flourish finally in the short term and where?
Good question… We strongly hope and we are providing our small contribution with the new openings (between this and the next year) and the search for new opportunities. More in general, probably the market will still focus on the city for a few years, the most important ones. The turning point could come from: first, concrete policy measures (lowering of VAT rates in disadvantaged regions, taxes proportionate to the capacity to create skilled workforce, etc.); second, a real opening of the credit from the banks world; third, the review of the rules governing the relations between funds/SGR and management companies, with regard to the management contracts.
Marco participated in Italia GRI 2014. View here more information about this year’s event and who will be attending.