The document analyzes bad debts and real estate auction sales in Italy from 2008-2013. It finds that total bad debts increased 88.9% over this period, with banking bad debts increasing 200.89%. The increase in bad debts led to over 66,000 real estate auction sales in 2013, a 30.89% rise from 2011. Most properties sold at auction were residential, comprising 65.32% of auction sales. The regions with the most auction sales were Lombardy, Campania, and Sicily.

1. Bad Debts and Real Estate Auction Sales
Italy, December 2013
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2. Summary
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
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3. Aim of the Report
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.
Authors
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.
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4. Data source
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.
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5. Notes
The current financial market 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.
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6. Loans and bad Debts
2008-2013*
(*June)
Loans +19,78%
Total bad debts
+88,90%
Banking bad debts
+200,89%
Total loans
Total loans for house purchase
€ 190,29 (billion)
€ 133,89 (billion)
€ 299,30 (billion)
2013 (June)
€ 176,79 (billion)
€ 121,97 (billion)
€ 301,53 (billion)
2012
2011
€ 154,91 (billion)
€ 105,35 (billion)
€ 317,78 (billion)
2010
€ 136,34 (billion)
€ 76,83 (billion)
€ 305,83 (billion)
2009
€ 118,92 (billion)
€ 59,69 (billion)
€ 246,72 (billion)
2008
€ 100,74 (billion)
€ 44,50 (billion)
€ 231,90 (billion)
Total bad debts
Total banking bad debts
€ 1.875,02 (billion)
€ 1.956,30 (billion)
€ 1.977,69 (billion)
€ 1.735,30 (billion)
€ 1.560,75 (billion)
€ 1.565,30 (billion)
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7. Bad debts detail
200
€ 190,292 (billion)
Banking bad debts
Total bad debts
€ 176,789 (billion)
150
€ 154,914 (billion)
€ 136,344 (billion)
€ 133,891 (billion)
€ 121,971 (billion)
€ 118,921 (billion)
100
€ 105,347 (billion)
€ 100,735 (billion)
€ 76,827 (billion)
€ 59,694 (billion)
50
€ 44,497 (billion)
0
2008
2009
2010
2011
2012
2013 (June)
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8. Real Estate Auction Sales
Real Estate Auction Sales by Location (region), (total Italy 66.022)
Comparison of year 2011 and year 2013 (+ 30,89%)
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
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
158
161
4.912
5.719
726
888
7.472
11.473
1.767
2.867
1.200
1.001
511
647
1.856
4.970
1.098
1.549
291
335
2.424
3.416
7.054
7.880
1.245
2.087
513
540
334
339
2.027
3.556
3.242
4.911
5.153
4.184
2.432
2.615
6.030
6.884
0
3000
6000
9000
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12000

9. Real Estate Auction Sales
Other
22,89%
Real Estate
Categories
Sold by
Auction
Industrial Properties and similar
3,10%
Commercial Properties
8,69%
Residential Properties
65,32%
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10. Real Estate Auction Sales
Islands North East Italy
14,37%
14,39%
Macro
Geographical
Areas
Southern Italy
23,65%
North West Italy
27,63%
Central Italy
19,96%
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11. Real Estate Auction Sales
North-west
Detail
Categories
Residential Properties
Industrial and similar
10000
Industrial and similar Other
1,09%
14,34%
Commercial Properties
5,66%
Commercial Properties
Other
7500
Residential Properties
78,91%
5000
2500
0
Valle d'Aosta
Piedmont
Liguria
Lombardy
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12. Real Estate Auction Sales
North-east
Detail
Categories
Other
24,06%
Industrial and similar
3,64%
Residential Properties
Industrial and similar
3000
Commercial Properties
Commercial Properties
Other
5,94%
Residential Properties
66,37%
2250
1500
750
0
Emilia R.
Friuli V.G.
Trentino A.A.
Veneto
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13. Real Estate Auction Sales
Central
Detail
Categories
Other
24,89%
Industrial and similar
1,68%
Residential Properties
Industrial and similar
6000
Commercial Properties
Other
Commercial Properties
9,70%
Residential Properties
63,73%
4500
3000
1500
0
Marche
Umbria
Tuscany
Lazio
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14. Real Estate Auction Sales
Southern
Detail
Categories
Other
29,23%
Residential Properties
53,79%
3000
Residential Properties
Industrial and similar
Commercial Properties
Other
Industrial and similar
6,31%
2250
Commercial Properties
10,67%
1500
750
0
Abruzzo
Molise Basilicata Calabria Campania Apulia
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15. Real Estate Auction Sales
Islands
Detail
Categories
Residential Properties
Industrial and similar
5000
Other
24,93%
Industrial and similar
3,14%
Commercial Properties
Commercial Properties
Other
Residential Properties
59,35%
12,58%
3750
2500
1250
0
Sardinia
Sicily
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16. Bad Debts and Real Estate Auction Sales
Italy, December 2013
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