Data from RE distressed market: Properties auctions in Italy

Canesi, Rubina; Marella, Giuliano

doi:10.1016/j.dib.2018.03.009

Cited by 2 publications

(1 citation statement)

References 9 publications

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“…The Italian auction market is similar to the American one in terms of the discount on final sale price; with particular reference to the domestic context, a comprehensive survey on the Italian Real Estate distressed market has been provided by Canesi and Marella (2018), focusing on property foreclosures occurring in north-eastern Italy, specifically in the Veneto Region; socio-economic characteristics concerning housing market trends and demographic features were considered in order to relate the performances of a distressed market to the surrounding urban context; the analyzed aspects were physical location, income, variation of normalized number transactions (NTN), population and real estate activity index (IMI). Furthermore, other characteristics, such as profitability in terms of occupancy, physical features (such as type, state of maintenance, gross building area and quality) and auction market features (days on market, number of auctions, discount, premium and date of value) were included.…”

Section: Evidence From Italian Experiencementioning

confidence: 99%

Italian Auction Market: Features of Discounted Forced Sale Price

Amoruso

Mariani

d’Amato

et al. 2020

Real Estate Management and Valuation

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The purpose of the paper is to investigate the main causes of discount between list price and forced sale value in the Italian real estate auction segment, in favor of more comprehensive determination of the value of mortgage underlying guarantees; this would allow for an improvement of further valorization processes of assets intended to obtain a higher selling price.Starting from the results of existing literature, an ordinary least squares regression analysis was conducted in order to point out the main determinants of the discount between list price and forced sale value. It has been verified, when sampling 225 cases of forced residential property sales in the South of Italy, that the time constraint of the Italian regulatory framework is more relevant with reference to discount rather than the physical characteristics of assets.The influence of the duration of procedures is proof that even if recent government initiatives have led to positive results in terms of reducing the length of procedures, this is not yet satisfactory compared to other European contexts. This provides evidence of the need for further interventions aimed at improving the efficiency of the procedural system, also encouraging recourse to other options that lead to ease judicial burden.

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Section: Evidence From Italian Experiencementioning

confidence: 99%

Italian Auction Market: Features of Discounted Forced Sale Price

Amoruso

Mariani

d’Amato

et al. 2020

Real Estate Management and Valuation

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A logical operating model for the assessment of the forced sale value in the judicial procedures

Tajani

Morano

Locurcio

et al. 2022

Valori E Valutazioni

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With reference to real estate auctions activated in the context of judicial procedures (bankruptcy and/or executive), this work develops and tests a logical operating model for the assessment of the forced sale value. This is determined from the market value of the asset by applying an appropriate discount (or premium) coefficient based on the potential risks of the urban and market context in which the property is located. The estimated coefficient allows for determination of the auction value of the property to be sold which, due to yields obtainable and transaction risk, is admissible in terms of buyer convenience. The model proposed and tested here borrows Ellwood's logic as applied to the real estate sector, integrated through the investment risk assessment approach of Real Options Analysis. Applied in the one hundred and forty cities where the Italian courts are based, the model allowed for the construction of an abacus of discount (or premium) coefficients, differentiated in terms of the cities analyzed, the various areas of each city and the intended residential or commercial use. Putting in practice the application highlighted the validity of the model, capable of contextualizing the discount (or premium) coefficient needed to determine forced sale value based on the risk factors of the market areas considered. Practical implications of the abacus include the possibility of limiting the times of auctioning procedures, as well as generating a map of the areas of greatest interest for potential investors, where the uncertainty, typical of this specific real estate sub-market, is overcome by the knowledge of the limit values of investment convenience for the area under analysis. Con riferimento alle aste immobiliari attivate nell'ambito di procedure giudiziarie (concorsuali e/o esecutive), nel presente lavoro è sviluppato e testato un modello logico-operativo per la stima del valore di vendita forzata. Questo valore è determinato a partire dal valore di mercato del cespite applicando, a seconda dei casi, in ragione dei rischi o delle potenzialità del contesto urbano e di mercato in cui l’immobile è ubicato, un congruo coefficiente di sconto o di premio. Il coefficiente stimato permette di determinare il valore a base d’asta dell'immobile da aggiudicare che, in ragione dei rendimenti ottenibili e del rischio dell'operazione, risulti ammissibile in termini di convenienza per l’acquirente. Il modello, qui proposto e testato, mutua la logica di Ellwood applicata al settore immobiliare, integrata mediante l’approccio valutativo della rischiosità degli investimenti proprio dell’Analisi delle Opzioni Reali. Implementato sulle centoquaranta città in cui hanno sede i tribunali italiani, il modello ha consentito di costruire un abaco dei coefficienti di sconto (o di premio), differenziati per le città analizzate, per le diverse zone di ciascuna città e per le destinazioni d’uso "residenziale" e "commerciale". L'applicazione condotta ha posto in risalto la validità del modello, in grado di contestualizzare il coefficiente di sconto (o di premio) per la determinazione del valore di vendita forzata in ragione dei fattori di rischio degli ambiti di mercato considerati. Le implicazioni pratiche dell'abaco concernono la possibilità di contenere i tempi delle procedure di vendita all’asta, come pure di generare per i potenziali investitori una mappa delle aree di maggiore interesse, dove l'aleatorietà tipica di questo particolare sub-mercato immobiliare è superata dalla conoscenza dei valori limite di convenienza dell’investimento per l'ambito in analisi.

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Data from RE distressed market: Properties auctions in Italy

Cited by 2 publications

References 9 publications

Italian Auction Market: Features of Discounted Forced Sale Price

Italian Auction Market: Features of Discounted Forced Sale Price

A logical operating model for the assessment of the forced sale value in the judicial procedures

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