IDEAS home Printed from
   My bibliography  Save this article

Real Estate Industry and Finance for (towards) Urban Development


  • Gualtiero Tamburini


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.

Suggested Citation

  • Gualtiero Tamburini, 2007. "Real Estate Industry and Finance for (towards) Urban Development," Economia dei Servizi, Società editrice il Mulino, issue 2, pages 311-334.
  • Handle: RePEc:mul:j1t56u:doi:10.2382/24377:y:2007:i:2:p:311-334

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    File URL:
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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: (). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.