The COVID-19 pandemic has allowed the Italian real estate sector to improve in terms of its use of technology.
Buying a house in Italy using technology
Buying a house in Italy using technology / Gtres

How has the real estate market changed more than a year after the outbreak of the coronavirus pandemic and what are the emerging trends in the sector in 2021? To get an overview, idealista/news interviewed Giorgio Tinacci, founder and CEO of Casavo, the instant buyer that has had a winning impact on Italian real estate and beyond, including some of the new technology could help you buy a home in Italy.

How the real estate market in Italy has reacted to the pandemic

"Compared to other real estate asset classes, the residential sector has shown strong resilience, especially in terms of the recovery of transactional volumes.

In the fourth quarter of 2020, we started to observed growth in purchases and sales of almost 9% compared to 2019; this happened both in the capital cities and outside the city. The first quarter of 2021 paints a similar picture based on the strong demand we have seen in cities in Italy. The recovery and expansion phase we are experiencing is probably linked to the strong growth in private savings, the attention paid to one's own living space during the pandemic and the availability of mortgage concessions from credit institutions".

How technology could help you buy a home in Italy

Tinacci emphasises the increase in technology in the real estate sector in Italy, something that will benefit both national and international buyers who can buy a property without having to even leave their home. He states that, "in general, as in all sectors, there has been an acceleration in the digitisation process, benefiting platforms that are able to simplify the user experience through technology by reducing physical contact.

Compared to other sectors, the real estate sector has not been very technologically friendly in Italy until now and most activities have been carried out in a traditional way, often not in line with the current needs of consumers and market players. As a result, the opportunity here is huge and I believe that the trends currently underway are only a first step in a wider change that will affect all dimensions of the real estate market".

When it comes to technological trends and recent investments, Tinacci adds some examples of how technology is helping buyers and sellers, highlighting the digitisation of residential sales with video tours and other resources, as well as alternative financing for buyers, being able to get a mortgage online, community-oriented platforms (co-working, co-living), the opening up of real estate investments to savers, property management and productivity software and data-analytics for professionals.

Has there been a 'COVID effect' on real estate?

According to Tinacci, the real estate sector in Italy has certainly experienced other changes, apart from the digitalisation of the sector: "demand has changed: it is increasingly attentive to quality, to the nature of spaces. The trend is towards a multi-functional type of property, homes with larger dimensions and modular spaces. This is a clear consequence of the needs arising from the new lifestyle during the lockdown that has merged work, study, home and leisure".

He adds that "well-livable homes are becoming a necessity, possibly with outdoor space. A balcony, for example, is seen as vital, as are gardens and terraces. At the same time, however, you have to deal with the reality of people's purchasing power, which has come to a standstill in this period".