Real Estate Industry and Finance for (towards) Urban Development
In 1997/98, real estate prices in Italy began to rise rapidly. However, far from being just an Italian phenomenon, similar rises in price concerned almost all developed countries. The drastic decrease in real interest rates and the considerable liquidity available have been identified as the main causes behind this trend. Despite this increment in prices, other concomitant developments have drastically changed the real estate markets in general, and the real estate services industry in particular. While the output of a building firm consists of manufactured goods, a real estate firm, related to a global industry where finance banking and insurance are increasingly integrated, produces intangible output in the shape of services. In the 90s, the real estate experienced a spectacular growth, confirmed by the 172% rise in the sector employment rates. Furthermore, the data related to the years following the 2001 census indicate the persistence of the 9's trend over the new millennium. The 90s banking and urban planning reforms, the new information technologies, the changes in the economy and in the financial, industrial, logistic and commercial distribution sectors, have set the conditions for the Italian real estate industry's sharp growth; however, still undersized if compared to that of countries that started earlier on this path to development. The percentage of first-time buyers has increased rapidly while the institutional investors' commitment has begun to fall. Industrial and service firms, on the other hand, externalised their assets management even through spin off, while real estate specialised investors, thanks to new financial instruments and the opening of markets, entered the scene. This has allowed industrial and service (even public service) firms to specialise in the core business. In perspective, such is the behindhand demand of quality building building constructions and urban services is so big at the moment that, notwithstanding progresses registered on the supply side, a considerable potential for growth can be still foreseen in the real estate industry.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:mul:j1t56u:doi:10.2382/24377:y:2007:i:2:p:311-334. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.