The real estate agency market - Italy (2024)

1.2 The global market

In ****, the global real estate market is estimated at $****.* billion. A compound annual growth rate (***) of *.*% is projected for the period ****-**** under which the market globally could reach a total value of $****.* billion. Real estate market World, ****-****, in billions of dollars Precedenceresearch Looking at the geographic distribution of the world real estate market expressed as a percentage, in ****, the data indicate a clear dominance of the real estate market in the APAC (***) region, which holds **.** percent of the global market. This is followed by North America with a **.** percent share, Europe with *.* percent, and finally the Middle East and Africa with a much smaller share of *.** percent. In summary, the APAC region is by far the most significant market, while North America and Europe account for a smaller portion, with the Middle East and Africa having the lowest market share. Housing market, breakdown by greographic area World, ****, % Precedenceresearch

In ****, the global real estate agency and brokerage market reached a total value of $*****.* billion. A compound annual growth rate (***) of *.* percent is projected for the period ****-**** under which the world market could reach a total value of $****.* billion by the end of the period.

Real estate agency and real ...

1.3 The European market

The European estate agency market is expected to grow steadily over the period ****-****. This sector, which plays a crucial role in facilitating real estate transactions and supporting intermediation between buyers and sellers, saw its initial value stand at $*** billion in ****. Since then, the market has expanded significantly, reaching $***.** billion in ****.

In detail, the value of the market grows gradually each year, with a ** percent increase already in the first five years, rising from $*** billion in **** to $***.** billion in ****. Growth intensifies in the second half of the period, where a ** percent increase is observed between **** and ****. The sector, therefore, shows solid and continuous expansion potential.

Value of the European estate agency market Europa,****-****,Miliardi Imarc; The Counselors of Real Estate

Investment by sector in Europe in ****, expressed in billions of euros, is shown. The residential sector, with **.* billion euros, leads investment, followed by offices, which receive *.* billion. Industry stands at *.* billion, while investments in hotels and healthcare are *.* billion and *.* billion, respectively. There is a predominance of investment in housing, with a significant gap from other sectors, probably reflecting a priority for residential development in the European housing market.

Investment by sector in Europe Europe,****,Billion euros CBRE we represent ...

1.4 The Italian market

Between **** and ****, the residential real estate market in Italy shows strong growth. During the period, the market value grew by **.*%, from **.* billion euros to ***.* billion euros. The outbreak of the pandemic in **** brought market growth to a halt (***)

Residential real estate market Italy, ****-****, billions of euros agenziaentrate.gov.it

Considering the geographical breakdown of real estate market turnover, the Northwest of the country is where **.*% of the total is concentrated. This is followed by the Center (***). Finally, the Islands contribute just *.* percent of the national turnover total. Real estate market turnover, breakdown by geographic area Italy, ****, % Revenue Agency Considering now the activities under Ateco Code **.** "Real Estate Brokerage Activities," the total turnover of the sector between **** and **** appears to be growing sharply. During the period under consideration, total turnover increased from *.** billion euros to *.** billion euros, registering a growth of **.* percent. The growth appears to be constant during the entire period, with the exception of ****, when compared to ****, total turnover is found to be down by *.* percent. Total turnover of enterprises under Ateco Code **.** "Real estate brokerage activities" Italy, ****-****, in billions of euros Istat

2.1 Demand in Italy

To analyze the demand for real estate agencies in Italy, the segments of buying, selling, and renting of residential units are considered. Specifically, volumes (***) between **** and ***** are analyzed, as well as the shares of real estate agencies that have concluded buying and selling and leasing contracts between **** and **** . Buying and selling In ****, the residential segment of the housing market contributed **.* percent of total buying and selling. This was followed by garages and parking spaces (***). Finally, real estate for other uses accounted for *.*% of the total. Purchase and sale of real estate, breakdown by intended use Italy, ****, % Agenziadelleentrate Between **** and ****, the number of homes bought and sold annually are on the rise. While in **** the number of homes bought and sold had been ***,***, in **** these are ***,***, a growth of **.* percent. Again, **** represents the only year in which the values recorded are down from the previous year: -*.*%. Volume of housing purchases and sales Italy, ****-****, in thousands Agenziadelleentrate

Between **** and ****, the share of real estate agencies that sold at least one property also increased. While in **** this was **.*% of total agencies, in the first * months of **** **.*% of agencies sold at least one property. However, compared to ****, the (***)

Share of agencies that have ...

2.2 Demand drivers

Distribution of population by people who are renting Italy,****,Thousands Istat Considering the youngest segment of the population (***), it is possible to highlight the main reasons why buyers/landlords turn to a real estate agency. In ****, ** percent say they based their choice because agencies facilitate the buying and selling process; ** percent to receive help with bureaucratic aspects, ** percent for the legal aspect of buying and selling, and ** percent to verify the documents required for the deed. Other reasons include the presence of insurance services, credit counseling, redevelopment, and assistance related to household utilities. Why young people (***) turn to real estate agencies Italy, ****, % Idealist

2.3 Geographical distribution of demand

The geographic distribution of the number of normalized transactions in Italy in ****, expressed as a percentage, is shown. Central Italy is the area with the largest number of transactions, accounting for ** percent of the total, highlighted by the darker coloring. The Northeast follows with **.* percent, while the Islands and the South have similar percentages, **.* percent and **.* percent, respectively. The Northwest presents the lowest value, with only *.* percent, as indicated by the lighter coloring on the map. These data underscore a strong concentration of transactions in the Center and relatively little activity in the Northwest.

The Northwest emerges as the area with the largest percentage of leased properties, accounting for **.* percent of the total, highlighted by the darker coloring. It is followed by the Center with ** percent, while the Northeast stands at **.* percent. The South and the Islands show lower percentages, **.* percent and *.* percent, respectively, with lighter coloring. These data indicate a clear predominance of the Northwest in the residential rental market, compared to other Italian regions.

2.4 Online real estate agencies

The growing consumer orientation toward online real estate agencies is driven by several factors that reflect contemporary market needs and changes in purchasing behavior. This phenomenon is influenced by the convenience and accessibility that such platforms offer, allowing customers to access services from anywhere and at any time, saving time and offering flexibility. The adoption of advanced technologies such as virtual reality, artificial intelligence, and big data analytics enables more effective visualization of properties and more efficient matching processes. This translates into a greater range of choice for the client, who can explore a wide variety of options without geographic limitations, and personalized services through the use of algorithms that tailor the search to the consumer's specific needs.

In addition, online agencies often offer more competitive rates due to reduced operational costs associated with the absence of physical offices and the automation of many processes. The increased transparency provided by online platforms, with detailed information about properties and the terms and conditions of sale or lease, helps to build consumer confidence. The ease of communication through digital channels, such as chat and email, further simplifies the process. Finally, the ability to access online feedback and reviews gives customers a clearer view ...

3.1 The market structure

in ****, the number of active enterprises was **,***, remaining stable until **** with **,*** enterprises. From ****, a gradual increase is observed, with **,*** enterprises, continuing until ****, where the number reaches **,***. Active enterprises under Ateco Code **.** "Real estate brokerage activities" Italy, ****-****, in thousands Istat;Business register

independent agencies represent the majority throughout the period, with a steady increase from **,*** in **** to **,*** in ****. Franchised agencies, although fewer in number, also grow steadily, from *,*** in **** to *,*** in ****. Over the ****-**** period, independent agencies increase by ** percent, while franchised agencies show ** percent growth, suggesting greater expansion of franchise networks. Real estate agency trends ****-**** Italia,****-****,Unità News.frimm

franchised agencies are growing steadily, from *,*** units in **** to *,*** in ****, a total increase of ** percent. At the same time, the number of real estate buys and sells shows a more variable trend: starting from ***,*** in ****, it grows to a peak of ***,*** in ****, and then declines slightly to ***,*** in ****. Despite the fluctuation in purchases and sales, the trend of franchised agencies has remained positive, suggesting stable growth in the organized real estate network sector. Franchise and residential buying and selling trends ****-**** Italia,****-****,Unità News.frimm

Finally, considering the legal form of business, sole proprietorships and freelancers account for ...

3.2 The value chain

3.3 The main actors

The following is a proposed list of the main ones divided between residential brokerage and franchise business:

Residential brokerage

Dils s.p.a: founded in ****, was born from the merger of Redilco and Sigest, companies with fifty years of experience in real estate. It specializes in consulting, brokerage and integrated real estate services, covering sectors such as logistics, office, retail, hospitality and living. With offices in Milan, Rome and Amsterdam, Dils is recognized for its soundness, innovation and impact in the real estate market, both in Italy and Europe. It manages more than * million square meters and realizes annual transactions of *.* billion euros.

Cbre s.p.a: founded in **** in San Francisco, is a global commercial and investment real estate services company. It operates in more than *** countries with over ***,*** professionals, offering integrated services supported by deep market knowledge, superior data and proprietary technology. CBRE excels in providing multidimensional services in every area of commercial real estate, contributing to its clients' success through innovative real estate solutions. The company is also committed to corporate social responsibility, driven by the needs of the cities in which it operates and the communities it builds.

Risorse Per Roma s.p.a: a company with ...

3.4 The other players: real estate portals

A real estate portal is a website that collects real estate listings from real estate agencies and makes them visible to Internet users. These portals facilitate the meeting of supply and demand in the real estate market by actively facilitating the conclusion of transactions. Real estate portals offer various advantages to real estate agencies:

Access to a large pool of potential clients: real estate portals provide agencies with a platform to reach a large audience of potential buyers or tenants. Being well positioned on search engines, these portals provide significant visibility to real estate listings. Differentiation from competitors: through real estate portals, agencies can create distinctive and attractive listings, using tools such as high-quality images, virtual tours and accurate maps. This helps differentiate themselves from competitors and influence the decision-making process of potential clients. Optimizing ad performance: with the help of appropriate real estate software, agencies can easily manage ad placement, monitor performance, and qualify leads from portals. This improves business efficiency and helps get the best possible return from the ad posting strategy.

(***)

The market for real estate portals, is moving steadily toward concentration. To date, there are only * real estate portals that can be considered "TOP Players," i.e., ...

4.1 Type of the offer

A real estate agency is a professional organization that brokers real estate transactions. It acts as an intermediary between sellers and buyers of real estate, facilitating the sale, purchase, or rental of property. Agencies are generally made up of a team of licensed real estate agents who have specific knowledge of the local market and industry regulations. The real estate agency's function is to facilitate real estate transactions by offering services that include researching properties according to the client's needs, competitively evaluating properties, managing offers and negotiations, and even assisting in drafting and signing contracts. Real estate agencies provide detailed and specialized services for both property owners and buyers or renters:

For owners:

Real estate appraisal: detailed analysis to determine the market value of the property. Real estate marketing: targeted strategies to advertise the property, including photo shoots, virtual tours, and listings on various channels. Property management: assistance in managing leases, property maintenance, and resolving any issues. Legal and tax advice: guidance in the legal and tax complexities of selling or leasing.

For buyers/landlords:

Property search: personalized assistance in finding the property that best meets their needs. Negotiation and closing the deal: support in negotiating favorable terms and assistance in ...

4.2 The prices

The real estate commission is the amount calculated as a percentage that goes to pay for the work done by the real estate agent that begins with the placement of the ad for sale or rent until the primary proposal and the conclusion of the deed with the signature of both parties.both the buyer and the seller (***)

An important point that is often overlooked concerns the absence of regulatory provisions establishing agency commission rates for mediation activity.This implies that the amount will be established between agent and client, generally on the basis of a basic fee schedule provided by the broker himself, possibly revised according to the value of the property being negotiated and whether it is located in particular areas that are particularly desirable and in demand.(***)

Buying and selling

Below are the average commissions charged by real estate agencies in each Italian region:

(***)

(***)

Lease

Regarding renting, the commissions charged by real estate agencies are generally divided into two types:

The amount of * month's rent + VAT The **% - **% of the annual rent + VAT

The law stipulates that the real estate agency's commission is to be paid by both parties. But the rule can always be changed. ...

4.3 Sales prices and rents

Buying and selling

Between **** and ****, the average sale price of real estate in Italy is essentially unchanged. However, while between January **** and April **** it is possible to show a decrease in the average sale price of *.*% (***).

Average sale price Italy, ****-****, in euros per m* Immobiliare.it

Lease

In contrast to buying and selling, the average price for renting real estate between **** and **** appears to be growing steadily. Between January **** and October ****, the average rental price per m* increased from *.* euros to **.** euros, marking a growth of **.* percent. The growth appears to be constant throughout the entire period, and the outbreak of the pandemic in **** seems to have played an important role in the price increase: between January **** and December ****, average rental prices grew by **.* percent. The outbreak of the Russian-Ukrainian conflict in February **** seems to have played another important role in the further increase in prices: between January **** and December ****, average rental prices grew by *.*%.

Average rental price Italy, ****-****, in euros/m* Realty.co.uk

4.4 New supply trends

Generative artificial intelligence in the real estate market is revolutionizing the way real estate is bought and sold and managed. Here are some key aspects of this technology:

Real estate valuation: AI can analyze huge amounts of market data to estimate the value of real estate more accurately. This includes consideration of factors such as location, size, condition of the property, and local market trends. *D modeling and visualization: using generative AI, detailed *D models of properties can be created. This helps buyers visualize properties even without site visits, providing a more immersive and informative experience. Customization ofrenovations: AI can suggest custom modifications and renovations based on user preferences and design trends, helping to visualize possible improvements and increase property value. Prediction of market trends: Artificial intelligence can predict future trends in the real estate market by analyzing historical and current data, enabling investors and real estate agents to make more informed decisions. Property management: AI can help with property management by monitoring maintenance, optimizing energy use, and managing interactions with tenants, making the process more efficient and less time-consuming. Buyer-seller matchmaking: AI can efficiently match buyers with properties best suited to their needs and budgets, improving the efficiency of the ...

5.1 The legislation

The following are some of the main legislative aspects related to the activity of real estate brokerage:

Law No. ** of February *, ****: concerning the regulation of the profession of mediator. Article **** of the Civil Code: sanctions the activity of mediation by defining it as neutral: the mediator must not be related to one of the parties by kinship, friendship, or collaboration. Article **** of theCivil Code: provides that the real estate agent is entitled to the payment of commissions from both parties involved in the deal. Article **** of the Civil Code: stipulates in the first paragraph that the broker has the obligation to inform the parties of circumstances known to him, relating to the evaluation and security of the deal, which may affect the conclusion of the deal. Article * of the Law of May *, ****, No. **: relating to the provisions on the profession of business agent. Specifically, Article * stipulates that "the exercise of the activity of mediation is incompatible with the exercise of entrepreneurial activities of production, sale, representation or promotion of goods pertaining to the same commodity sector for which the mediation activity is exercised." Law ***/**** (***), Art. *, paragraph **: incorporates new obligations for real estate agents Article ** Legislative Decree of August *, ****, No. ***: concerning the ...

6.1 Segmentation

• DILS S.P.A
• CBRE S.P.A
• RISORSE PER ROMA S.P.A
• Tecnocasa Franchising s.p.a
• Re/Max Italia (Proximm s,p.a)
• Immobiliare.it s.p.a
• Idealista s.p.a