The Italian building industry has been undergoing a recession for six years and the prospects for the next two years keep on worsening.
All the factors which had led the building sector during the booming years in the early 2000s have faded away: population growth, access to credit, profitability of real estate investment and spending for public works. In addition, as usual, during this “booming” period too many buildings were constructed, thus causing a significant growth of unsold buildings.
Hence, the two engines driving the building sector in the decade between 1996 and 2006 have lost steam, namely the construction of new residential buildings and spending for public works. Against this background the global financial crisis has also set in which, by stopping ling the credit flow, has turned the slowdown of the activities started in 2006 into a downfall of which today we cannot foresee the final outcome.
The market reconfiguration
Nevertheless, if we focus too much on this general framework, it is hard to understand what is really happening in the Italian construction industry. In fact, the general crisis situation hides very different trends and dynamics between industries, sectors, actors and regions.
These trends and dynamics show that this time the construction industry has not only been cut down to size, but has also undergone a real reconfiguration – a change of structure. A new cycle has already begun, but its driving forces are not the same as before – and also the actors have changed partially. The “traditional” sectors (new houses and the sole building of public works) are bound to suffer a structural downsizing, while new driving forces are emerging, linked to the energy technology, the upgrading of existing property, the public facility management and product innovations.
Tackling the crisis – The Rubei Group
Thanks to its expansion occurred in the first decade of 2000s, currently the Rubei Group can face the crisis by capitalizing on the investment, works and good contacts and connections acquired due to the important works carried out.
The attention paid to market changes and evolution has enabled the Group to have a careful decision-making ability, capable of identifying the most valuable investment opportunities.
The customer-orientation strongly pursued by the Group has been rewarded through the involvement and shareholding in companies with significant Rome real estate managers still having many initiatives in their portfolio to be undertaken.