Two-speed real estate: BoE supports European sector

The real estate sector had a two-speed week, with Italy posting a negative performance, partly reflecting the release of half-year results from some companies in the sector. The sector fared better in the rest of Europe , also benefiting from the rate cut announced by the Bank of England.

BoE cuts interest rates but is divided

The most important meeting of the week was with the Bank of England , which announced a 25 basis point interest rate cut , bringing the official discount rate to 4% from 4.25%. This decision split the Board, which voted with a narrow majority of five members in favor and four against. What's dividing the bankers is the different weight each has given to growth and inflation metrics, since price growth remains somewhat elevated, although far from the peaks seen between 2023 and 2024. For the same reason, the BoE has declined to provide certainty about further possible rate cuts , although analysts believe there is room for another cut this fall (perhaps as early as September).

Meanwhile, the Fed is still grappling with the future succession of Jerome Powell , for whom President Trump has reportedly selected a shortlist of four candidates. Governor Christopher Waller remains in pole position , appearing the most suitable candidate for White House advisers due to his focus on inflation prospects rather than current data.

Macro data of the week

Mortgage applications are on the rise in the United States. In the week ending August 1, 2025, there was a 3.1% increase , following a 3.8% decline the previous week. The refinance application rate increased by 5%, while the new application rate rose by 2%. Interest rates on 30-year mortgages fell to 6.77% from 6.83% the previous week.

In the UK , the Halifax house price index signalled a recovery in house prices , recording a 0.4% month-on-month decline in July, above the consensus (+0.1%) and an increase of 2.4% year-on-year, compared to 2.7% previously.

News from the sector

An idealista.it survey found that Italian house prices increased slightly in July, rising 0.3% compared to the previous month, with an average price per square meter of €1,833. However, the annual figure remains negative, down 1.6%. Regionally, growth occurred in most Italian regions (11 out of 20), with the most notable increases in Veneto and Friuli-Venezia Giulia, both up 1%. Lombardy (0.9%), Tuscany, and Campania (0.5%) followed, while smaller increases were observed in Lazio and Molise (0.4%), and Calabria (0.1%).

Mamacrowd , the Azimut Group's equity crowdfunding platform, has announced the successful completion of its fundraising campaign for the "Corso Vittorio 209" real estate project in Rome , reaching €3 million thanks to the contributions of 228 investors. The project involves the conversion of a prestigious penthouse in the historic center into eight high-quality residential units. The strong community response confirms the market's interest in assets with solid fundamentals, strategically located, and supported by transparent business plans.

The performance of the sector on the stock market

Real estate had a modest week on the stock market. The pan-European Stoxx 600 Real Estate Index fared better, recording a strong increase of 3.2% on the week.

Italy recorded a negative performance, where the FTSE Italia All Share Real Estate index lost around 0.54%, underperforming the FTSE MIB market index, which gained 1.7%.

Among the real estate companies listed on the Milan Stock Exchange, the only positive performance was that of Gabetti , which gained 1.49% on the week. The worst performer was AbitareIn , which fell 7.25% after announcing a decline in its third-quarter earnings to €2 million and revenues to €84.6 million. Next Re also performed significantly worse, declining 7.88%, while Aedes slipped 4.55% and Brioschi 2.47%.

It contains the losses of Risanamento (-1%) and IGD (-0.46%), the latter after announcing the closure of the first half of the year with a net profit of 10.6 million euros, a strong improvement compared to the loss of -32.5 million euros in 2024.