The Secrets of the City’s RE

The Politeama seen from the front

In the first half of 2023, the real estate market in Palermo saw a decrease of 6.3 per cent in transactions compared to the same period in 2022. However, when compared to the national data for Italy, which saw a larger decrease of 11 per cent, Palermo’s real estate market performed relatively better (the Gabetti agencies recorded a slight increase of + 1 per cent).

Is there a secret behind this trend in the real estate sector in Palermo? In general, a greater supply of properties in a given area leads to a decrease in prices due to greater competition among sellers. However, in the case of central areas in Palermo, it seems the opposite is happening.

The fact that properties in central areas of Palermo are selling in under 90 days, despite the double supply, indeed indicates a strong demand. This quick turnover time is a clear sign of a dynamic real estate market. While it’s generally true that high demand leads to high prices and high supply could lead to a decline in prices, Real Estate markets can be influenced by a variety of other factors.

In the case of Palermo the pedestrianization of the Historic Center has likely made these areas more attractive, leading to an increase in tourism. Additionally, the presence of the University in the city contributes to the demand for housing, as students and staff may be looking for accommodations.

While the current quality of public services in this area may not be high, there is a growing anticipation of significant improvements in the near future. It can justify the relative increase in prices.

The recent renewal of the Port area not only enhances the city’s aesthetic appeal but also serves as a testament to its growth and evolution. This revitalization can act as a magnet for further investment and development.

In general, a greater supply of properties in a given area leads to a decrease in prices due to greater competition among sellers. However, in the case of central areas in Palermo, it seems the opposite is happening

The highest prices are around Politeama- strategic point for the city’s transportation and commerce, as it connects the main streets and avenues of Palermo – where elegantly renovated properties are priced at 2,500 euros per square meter.

The case of Mondello: around 2,350 euros per square meter for elegant properties in excellent condition. This is followed by Capo Gallo with values that vary from 1,800 to 2,200 euros per square meter.

In the Baida area, the highest prices in the southern periphery are recorded: we are at 2,000 euros per square meter for elegant properties in excellent condition.

Northern Periphery (Resuttana – San Lorenzo – Cardillo): between 700 and 1,100 euros per square meter for types in good condition, depending on the class of the property. In the middle of the ranking Duca della Verdura, Michelangelo – Uditore, Southern Coastal Strip and Northern Coastal Strip. (Redazione)

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