Bad Debts and Real Estate Auction Sales - Italy, december 2013 - Report Opicons-2013-EN

Bad Debts and Real Estate Auction SalesItaly, December 2013

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1. Aim of the Report and Authors 2. Data Source 3. Notes 4. Loans and bad Debts 5. Bad Debts Detail 6. Real Estate Auction Sales


Summary





This report aims to provide relevant informations to examine and identify the dad debts phenomenon in the context of real estate loans with a special focus on real estate auctions, providing numbers and geographical indications. The project falls under Opicons' institutional activities which also operates in NON PERFORMING REAL ESTATE LOANS industry by innovative and flexible solutions for credit protection and real estate security preservation.


Aim of the Report

Cristian Pastorino Strong exeperiences in finance, real estate and business development. After many years of experiences in financial and banking institutions, now he is mainly focused in the development of entrepreneurial activities and advisory services. He is the founder and partner of OPICONS, an innovative project wants provide value-added solutions in the real estate financing with a strong focus on Non Performing real estate Loans (NPL's). He is partner at Edilverde Pastorino S.r.l., a company works in landscape enhancement, construction industry, environmental and green engineering and he is also partner at Capitalbrokers S.r.l, a financial broker company. Bachelor degree in Business Administration and Management.

Membership of financial adviser salesmen register at Consob.

Gerardo Paterna, Real estate consultant and entrepreneur in the sector of real estate services. Professionally is related with real estate and financial institutions for evaluation services, acquisition and commercialization of real estate assets. Membership of real estate agents register since 1999 has managed real estate agencies and worked as manager in some real estate networks. Today is also a Fondocasa corporate consultant and senior partner of Opicons which manages Non performing real estate loans. Great care on aggregative models and market trends he created website immofranchising.net.

Today he focuses his thinking activities on his blog www.gerardopaterna.com and he is also a contributor for advisorprofessional.it.

Authors




http://immofranchising.net

http://www.gerardopaterna.com

http://advisorprofessional.it


The informations contained in this report is from Statistical Bulletins by Bank of Italy, together with a web census on the 151 Italian courts. Additions were also made by legal advertising of real estate and property auctions web portals. Important to keep in mind that every single auction can contain multiple lots, so the number of real estate units for sale is at a level much higher (we presume order of hundreds of thousands) of the total number of real estate auctions mentioned in this report. Calculations performed by Opicons.


Data source





The cur ren t f inanc ia l marke t has developed important economic and social complexities. Among these, the “total bad debts” from year 2008 to year 2013 (June) have had an increase of 88,90% getting record result of 190,29 billion euro, of which 133.89 billion euro related entirely to banks. The direct reflex of this situation is clearly visible in the sector of real estate auction sales. The survey carried on 151 Italian courts, reveals that in as many as 66022 cases (+30,89% than 2011) trying liquidation of the real estate collateral (guarantee) by an auction sale. The real estate auction sales, in 65.32% of cases, affecting residential properties and this creates scenarios of social distress increasingly pronounced. The following

numbers, graphically shown, expresses more about the current situation and they are the second step of Opicons' research which asks and hopes for a clear and responsible acknowledgment of the situation by creditors and the introduction of new alternative instruments and flexible solutions (repossess, rent to buy, rent control contracts) that can protect credit's value and can keep a right social balance in the future. Large processes of NPL's management outsourcing and off-truck sale's operations are often ineffective and contribute to a stagnation of the problem that, conversely, needs treatments of greater strength with mixed skills of “approach/financial/real estate” headed by a single conscious direction.


Notes





2013 (June)

2012

2011

2010

2009

2008€ 231,90 (billion)

€ 246,72 (billion)

€ 305,83 (billion)

€ 317,78 (billion)

€ 301,53 (billion)

€ 299,30 (billion)

€ 44,50 (billion)

€ 59,69 (billion)

€ 76,83 (billion)

€ 105,35 (billion)

€ 121,97 (billion)

€ 133,89 (billion)

€ 100,74 (billion)

€ 118,92 (billion)

€ 136,34 (billion)

€ 154,91 (billion)

€ 176,79 (billion)

€ 190,29 (billion)

€ 1.565,30 (billion)

€ 1.560,75 (billion)

€ 1.735,30 (billion)

€ 1.977,69 (billion)

€ 1.956,30 (billion)

€ 1.875,02 (billion)

Total loans Total bad debts Total banking bad debtsTotal loans for house purchase


2008-2013* (*June)

Loans +19,78%

Total bad debts+88,90%

Loans and bad Debts

Banking bad debts+200,89%






Bad debts detail

0

50

100

150

200

2008 2009 2010 2011 2012 2013 (June)

€ 190,292 (billion)€ 176,789 (billion)

€ 154,914 (billion)

€ 136,344 (billion)

€ 118,921 (billion)

€ 100,735 (billion)

€ 133,891 (billion)€ 121,971 (billion)

€ 105,347 (billion)

€ 76,827 (billion)

€ 59,694 (billion)

€ 44,497 (billion)

Banking bad debts Total bad debts





Valle d'Aosta

Piedmont

Liguria

Lombardy

Emilia Romagna

Friuli Venezia Giulia

Trentino Alto Adige

Veneto

Marche

Umbria

Tuscany

Lazio

Abruzzo

Molise

Basilicata

Calabria

Campania

Apulia

Sardinia

Sicily

2011201320112013201120132011201320112013201120132011201320112013201120132011201320112013201120132011201320112013201120132011201320112013201120132011201320112013

0 3000 6000 9000 120006.884

2.615

4.184

4.911

3.556

339

540

2.087

7.880

3.416

335

1.549

4.970

647

1.001

2.867

11.473

888

5.719

161

6.030

2.432

5.153

3.242

2.027

334

513

1.245

7.054

2.424

291

1.098

1.856

511

1.200

1.767

7.472

726

4.912

158

Real Estate Auction Sales by Location (region), (total Italy 66.022) Comparison of year 2011 and year 2013 (+ 30,89%)

Real Estate Auction Sales



Other 22,89%

Industrial Properties and similar 3,10%

Commercial Properties 8,69%

Residential Properties 65,32%

Real Estate Categories Sold by Auction







Islands 14,39%

Southern Italy 23,65%

Central Italy 19,96%

North West Italy 27,63%

North East Italy 14,37%

Macro Geographical Areas







North-west Detail Categories


Other 14,34%

Industrial and similar 1,09%



0

2500

5000

7500

10000

Valle d'Aosta Piedmont Liguria Lombardy

Residential Properties Commercial PropertiesIndustrial and similar Other







Other 24,06%


Commercial Properties 5,94% Residential Properties

66,37%

0

750

1500

2250

3000

Emilia R. Friuli V.G. Trentino A.A. Veneto




North-east Detail Categories





Other 24,89%




0

1500

3000

4500

6000

Marche Umbria Tuscany Lazio




Central Detail Categories





Other 29,23%




0

750

1500

2250

3000

Abruzzo Molise Basilicata Calabria Campania Apulia




Southern Detail Categories





Other 24,93%




0

1250

2500

3750

5000

Sardinia Sicily




Islands Detail Categories




Bad Debts and Real Estate Auction SalesItaly, December 2013






Bad Debts and Real Estate Auction Sales - Italy, december 2013 - Report Opicons-2013-EN

Real Estate

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