Bankruptcies are down and real estate auctions are also down.
In the first quarter of 2023, the number of the properties subject to auction attempts at 56.500 units, for a total value ofminimum bid of about 9 billion euros, also down by -22%, compared to the same period of 2022.
The data emerge from the observatory “cherry brick”, created by the fintech startup “Cherry srl”.
A figure that is partly consistent with what was found by the Cherry Sea observatory on the trend of bankruptcy proceedings in the last quarter of 2022, in relation to the top twenty bankruptcy sections by volume of activity in Italy. In fact, the report shows that in 2022, 6.158 new bankruptcies were opened in the Italian courts, 30% less than those opened in 2021.
«Real estate auctions are now part of a dynamic and constantly evolving market that requires in-depth and up-to-date knowledge of the sector - explains Luca Bonacina, Co-Founder and Head of Technology of Cherry srl - In this context, our "Cherry Brick" observatory aims to provide detailed data and analysis on the behavior of real estate auctions throughout the country, thus allowing buyers and investors to have a clear view of both the market and the opportunities on the horizon. Access to accurate and reliable information such as those provided by Cherry Brick can in fact make the difference in making strategic decisions by maximizing results and minimizing costs».
Mostly residential properties are being auctioned
In line with the first quarter of 2022, the lots subject to auction attempts between January and April of this year mostly refer to property of type residential (56%), followed mainly by those in the commercial (20%) and industrial (4%) fields.
At the regional level the Lombardia the territory in which the highest number of auctions was held was reconfirmed with 7.477 auctioned properties (-22% on the first four months of 2022), equal to 13% of the lots auctioned throughout the national territory. Sicily follows with 6.846 auctions and Lazio with 6.116 (both registering a drop of 14%), while Valle d'Aosta remains at the bottom with 137.
Compared to the geographical subdivision, 71% of the auctions took place between North-West, South and Central Italy, with the latter two macro areas concentrating 25% each of the lots offered for sale throughout the Peninsula, while 13% and 16% are located in the Northeast and the Islands respectively.
Rome is the first in Italy in the ranking
Among the cities, with 1.665 auction attempts (3% of the national total) Rome confirms itself as the first in Italy in the relative ranking, with numbers far higher than those of Naples (second with 469) and those of Catania (third with 412) . Among the provinces, however, the Metropolitan City of Rome (3.744 lots for 7% of the total) is followed by Perugia (1.651) and Catania (1.539).
The Courts that handled the highest number of auctions are those of Rome (2.050, equal to almost 4% of the total, in line with the first quarter of 2022), Catania (1.298) Milan (1.282), Bergamo (1.197) and Perugia (1.004). In particular, compared to the first quarter of 2022, the Court of Milan recorded a drop in public sales of 39%, while Catania settled at -21% and Rome at -2%.
The average auction base is down slightly, but up for commercials
As for the average starting price of sales carried out in the first quarter of 2023 this amounts to 159.000 euros, in line with the last quarter of 2022 and down by 4% compared to the value of the first. Looking at the categories, the average auction base of sports facilities decreased during the period, equal to 475.000 euros, compared to 639.000 in the first quarter of 2022 (-26%). The average starting price of industrial properties fell to 618.00 thousand euros (-3% compared to the first four months of 2022), as did that of residential properties (128.000 euros, with a decrease of 9% compared to the first four months of 2022 ). Instead, that of the commercial real estate, equal to 179.000 euros (+4% on the same period of 2022).
At the regional level, Emilia-Romagna takes the place of Lazio among the areas in which lots are located whose average starting price on a national scale was on average higher, equal to around 317.000 euros, up by 68% compared to the first four months of 2022. Followed by Lazio (about 218.000 euros, -21%), Trentino-Alto Adige (214.000, stable value), Tuscany (211.000 euros, +8%) and Sardinia (198.000 euros, -13%). The rear lights are Valle d'Aosta and Molise (103.000 euros).
New auction announcements are also down
Looking at the data as a whole, it emerges that between 1 January and 30 April 2023 new auction notices were published on the Public Sales Portal for just over 58.000 lots, down by 20% compared to the number of publications surveyed in the first quarter 2022. In detail, 55% refer to properties for residential use, 19% for commercial use and only 4% for industrial use. 13% of the total is located in Lombardy (for a total of 7.758 new notices), 12% in Sicily (6.930) and 10% in Lazio (5.815), while at the territorial level the greatest concentration is in Central Italy (26 %), followed by the North West and South (23%), the Islands (17%) and the North East (12%). Among the cities, however, Rome remains the first in Italy for the number of auctions surveyed (1.491, -6% over the first four months of 2022), followed by Catania (450), Naples (391) and Perugia (369). At the provincial level, the Metropolitan City of Rome leads the ranking with 3.756 auctions published (equal to 6% of the national total), followed by the Perugia area and the Catania area (respectively with 1.818 and 1.561). Finally, among the auction methods, the "telematic asynchronous" and "mixed synchronous" (respectively in 33% of cases) are preferred to the "at the seller" (28%) or "telematic synchronous" (6%). Analyzing the city of Milan alone, from the suburbs to the centre, it emerges that the average auction base settles at 175.00 euros, but if we take commercial properties for example, this value drops to 129.000, while for residential properties soared to 264.000.
