The Performance of the Italian Housing Market and its Effects on the Financial System

68 Pages Posted: 27 Oct 2010

See all articles by Fabio Panetta

Fabio Panetta

Bank of Italy

Michele Leonardo Bianchi

Bank of Italy

Marcello Bofondi

Bank of Italy

Fabrizio Borselli

Bank of Italy

Guido Bulligan

Bank of Italy

Alessandro Buoncompagni

Bank of Italy

Mario Cappabianca

Bank of Italy

Luisa Carpinelli

Bank of Italy

Agostino Chiabrera

Bank of Italy

Francesco Columba

Bank of Italy

Guido de Blasio

Bank of Italy

Alessio D'Ignazio

University of Cambridge - Faculty of Economics and Politics

Cristina Fabrizi

Bank of Italy

Carlo Gola

Bank of Italy

Roberto Sabbatini

Bank of Italy

Federico Maria Signoretti

Bank of Italy

Francesco Zollino

Bank of Italy

Date Written: December 18, 2009

Abstract

Developments in the real-estate sector are of crucial importance for the business cycle and financial stability. This study analyses developments in the Italian housing market on the basis of both real and financial variables. Following the sharp contraction of the market during the financial crisis and the more general fall in economic activity, a few signals suggests that the recession in the housing market is easing somewhat. However, the degree of uncertainty remains considerable. In recent months the ratio between the flow of bad debts to total outstanding loans to households and construction firms has reached the highest levels since the beginning of the decade. The paper also investigates three issues of a more structural nature. First, it examines the performance and the regulatory framework of real-estate investment funds in Italy. Second, it analyses the main characteristics of the taxation of residential housing, with reference to ownership, rentals and transactions. Finally, the paper estimates the impact on residential house prices of the growing demand for housing services by immigrants.

Note: Downloadable document is in Italian.

Keywords: housing market cycle, transactions, rentals, residential house prices, mortgages, real-estate investment funds, taxation of residential housing

JEL Classification: E0, G21, H2, L85, R2, R31

Suggested Citation

Panetta, Fabio and Bianchi, Michele Leonardo and Bofondi, Marcello and Borselli, Fabrizio and Bulligan, Guido and Buoncompagni, Alessandro and Cappabianca, Mario and Carpinelli, Luisa and Chiabrera, Agostino and Columba, Francesco and de Blasio, Guido and D'Ignazio, Alessio and Fabrizi, Cristina and Gola, Carlo and Sabbatini, Roberto and Signoretti, Federico Maria and Zollino, Francesco, The Performance of the Italian Housing Market and its Effects on the Financial System (December 18, 2009). Bank of Italy Occasional Paper No. 59, Available at SSRN: https://ssrn.com/abstract=1698036 or http://dx.doi.org/10.2139/ssrn.1698036

Fabio Panetta (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy
+39 06 4792 4143 (Phone)
+39 06 4792 3723 (Fax)

Michele Leonardo Bianchi

Bank of Italy ( email )

Via Nazionale 91
00184 Rome, I - 00184
Italy

Marcello Bofondi

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Fabrizio Borselli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Guido Bulligan

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Alessandro Buoncompagni

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Mario Cappabianca

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Luisa Carpinelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Agostino Chiabrera

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesco Columba

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy
+39-06-47922131 (Phone)
+39-09-47923611 (Fax)

Guido De Blasio

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Alessio D'Ignazio

University of Cambridge - Faculty of Economics and Politics ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

Cristina Fabrizi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Carlo Gola

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Roberto Sabbatini

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Federico Maria Signoretti

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesco Zollino

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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