The impact of connections on the real estate market

The improvement of connections (air, rail, highway, road and underground), in most cases impacts on the real estate market positively, as confirmed by numerous studies in this regard. In these years, from our “Observatory” real estate, we have seen how the value of real estate and the demand, housing or not, changed in conjunction with the opening of subways or new roads. Two examples come from Lombardy, with the Bre.be.mi and the lilac metro in Milan.

Bre.Be.Mi

Bre.be.mi has had an impact especially on the non-residential real estate sector and, in particular, on the warehouses located in the lower Brescia area and in the Bergamo area. In fact, there has been a resumption of the purchase and leasing requests of these types, precisely at the Bre.be.mi and Corda Molle exits. In fact, one of the most valued aspects in the case of the purchase and lease of the sheds is precisely the proximity to major road arteries. Indirect effects have also occurred on the residential market with a slight increase in requests for purchase and lease in the municipalities of the area. Since July 2014, the month in which Bre.be.mi was inaugurated, the nearest municipalities have experienced a better price trend than other municipalities in the same province. In fact, over the period considered, the province of Brescia had a 4.1% price decrease, Rovato saw its values ​​grow by 7.4%. Montichiari had a drop of 9.7% but concentrated between the end of 2014 and the beginning of 2015, after which the values ​​stabilized, performing better than the average of the province to which they belong. The province of Bergamo saw an average loss of real estate values ​​of 7.7%, while Treviglio and Romano di Lombardia recorded an increase of 6% and stability of the values ​​respectively.

Milan

In Milan the lilac metro (line 5) was built during the crisis of the real estate market but, in the long run, it proved to be an important element for some neighborhoods, especially the more peripheral ones that, prior to the work, were not well connected . Among these we mention San Siro, Sempione – piazza Firenze, Cenisio, Testi – Ca ‘Granda and Farini – Isola. This last district, it should be specified, has also suffered the beneficial effects of the redevelopment of the nearby Porta Nuova area. In fact, since the second half of 2015 (since the whole line is operational), prices have risen more (+ 28.3%). Following this, the area of ​​Sempione – piazza Firenze with a 27.7% increase in prices. In this last reality the lilac line has not only contributed to a general improvement of the connections, but has also made it more interesting for those who can not rent and buy in the neighboring neighborhoods of “City Life” and “Porta Nuova” to which it is now quickly connected. Lastly, the San Siro district which, in the last few semesters, has seen growth not only in prices (+ 11.8%) but also in demand for rental properties and in purchase. And, for the first time, there have been requests for rent by students as the underground line has improved their connections with some universities as well.

Turin

In Turin we analyzed the stretch of Porta Nuova – Lingotto opened in 2011. In this case too, the price performance of the neighborhoods affected by the subway passage was better than the city average. In fact, if the properties of the capital of Savoy decreased by an average of 37.3% in the period from the first half of 2011 to the first half of 2018, those of the neighborhoods served by the subway decreased less. In particular, San Salvario – corso Dante (-18.2%) and San Salvario – Sacro Cuore – Università (-14.3%). Molinette – Genoa suffered a decline of 21.1%. Prices decreased in excess of the Turin average for the district of Nice – Millefonti where the Lingotto stop was completed, but the works for the next section of Lingotto – piazza Bengasi are still in progress.

Rome

In Rome we analyzed the effects determined by line C and line B1, extension of line B, from the Bologna to Jonio stop. The first saw full operation in June 2015. From then until the first half of 2018, the buildings in the capital left 6.8% on the ground, while neighborhoods such as Torre Gaia (+ 7.1%), Pigneto (+4 , 3%), Alexandria (0%) served by the new line have had slight price increases or registered stability. On the other hand, Torre Spaccata, Malatesta and Centocelle – Faggi – Gerani had a smaller decrease. Others, such as Torre Maura (-13.1%), recorded a stronger drop in prices but a greater interest in terms of requests. The extension of the fully operational B1 line in April 2015 has allowed an increase in demand in the Conca d’Oro area and a substantial price stability. The real estate values ​​of the Trieste – Torlonia area increased slightly (+ 1.8%). The average contraction of real estate values ​​in Rome in the same period was 8.8%.

18th february 2019
Estratto da Monitor Immobiliare.it
by G.I 18.2.19