With the end of the summer Europe is again in the middle of a second Coronavirus wave – as we unfortunately expected. Likewise, working from home is becoming more and more integral part of the world of work. Or even, as many surveys carried out among employees, managers and top managers indicate, it could become the only way, as already announced by some technology companies from Silicon Valley, some major financial groups in the City of London and various Southeast Asian companies. It not only means to not necessarily having to live close to your workplace, but also having wider rooms in your home, and you might be wondering: is it better to rent or buy a house – considering no one knows when the pandemic will end and when economic will revitalize again?
Mortgage rates have never been lower, thanks to the huge aid by central banks allowing very low rates even for the next years. Furthermore, one of perks of the lockdown is having the possibility to save, considering for example the impossibility to travel. The question is it's time to buy a house in the city, where you've always wanted, or perhaps in a small village, the ideal holiday destination. Not only USA but also UK have experienced massive purchases in the suburbs, bringing to a price increase, on the contrary of midtown, where a drop in prices followed – also because of the closure of many “entertainment” businesses.
What is happening in Italy? As announced by many key players even Italy is experiencing the same scenario. There is a certain prevalence of purchase rather than rent, also because of we are more inclined to be owners than tenants, and moreover the preferred housing solutions are independent properties consisting of private outdoor space, even better if equipped with a swimming pool or relaxation areas. A similar phenomenon was recorded in rents with a drop in the demand for “traditional” properties such as flats in a block and a huge increase in the demand for villas, small detached houses, farmhouses. Nevertheless, these increasing demands did not lead, until today, to an increase in sales prices, and this makes the current real estate market ever more competitively compared with other overvalued sectors.
Giampiero Torquati
