Download Analysis of real estate market dynamics and development in Molise

Report structure on
Real estate market dynamics and development in
<Molise -Italy>
University of Bucharest
36-46, M. Kogălniceanu Bd., Sector 5, 70709
Bucharest, Romania
1
Contents
1. Abstract ............................................................................................................................ 4
2. Methodological approach ................................................................................................ 6
2.1. Number of focus groups (FG)/interviews (I): ............................................................ 6
2.2. Number of participants in each FG ........................................................................... 6
2.3. About the FG moderator/interviewer ....................................................................... 6
2.4. Duration of FG/interviews ......................................................................................... 6
2.5. Sampling and FG composition ................................................................................... 6
2.6. Incentives .................................................................................................................. 8
3. Findings............................................................................................................................. 9
3.1. Local economic issues ............................................................................................... 9
3.1.1. Key findings ......................................................... Error! Bookmark not defined.
3.2. Local and area business ........................................................................................... 10
3.2.1. Key findings ......................................................... Error! Bookmark not defined.
3.3. Key local actors and local economic development projects ................................... 10
3.3.1. Key findings ...................................................................................................... 11
3.4. Resources for economic development ................................................................... 11
3.4.1. Key findings ......................................................... Error! Bookmark not defined.
3.5. Support for the LPA project, community leaders and investors ............................. 12
3.5.1. Key findings ......................................................... Error! Bookmark not defined.
4. Conclusions and recommendations ............................................................................... 12
5. Appendix: the focus group/interview guide in English with the adjustments made, if
necessary .................................................................................................................................. 14
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3
1. Abstract
The analysis, conduct on the Region of Molise, showed that the scenary is briefly given
below:
Strengths:




significant opening international exports growing ;
important value of the environmental, natural, historical and artistic;
limited presence of phenomena of crime and social decay;
supply of skilled labor;
Weaknesses:




widespread pattern of settlement;
low level of development and exploitation of tourism resources;
undeveloped road system on the main axes of communication and, where present,
with characteristics unsuited to the levels of demand;
levels of diffusion of ICT less than the rest of Italy
Opportunities:



favorable geographic position in relation to the Balkans and Central Europe;
proximity to areas / regions with high demand (Lazio, Campania);
strong development of tourism demand in respect of types / supply segments in the
region.
Risks:




Spatial isolation and fragmentation of production activities;
Depopulation of the smaller centers
Criticality of the mobility model both socially and economically;
Demographic structure with a high rate of old age as a risk to the accentuation of the
digital divide.
The discussion showed that the development opportunities offered by the area need to
focus on the enhancement of natural features of Molise, characterized by many (136) small
towns scattered throughout the region. The main strength lies in the exploitation of natural
areas and cultural niche through the recovery of accommodation in harmony with the
context.
4
The other area of interest are the industrial areas : these areas are publicly owned fully
equipped with infrastructures aimed at the industral activities, craft and commerce able to
offer:
 Low cost of the land and utilities;
 Significant available of free lots for new settlemesnts.
The above mentioned points are “containers” created in order to welcome industrial
locations, where large companies such as FIAT,and UNILEVER, but also ITTIERE and others
have chosen to settle.
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2. Methodological approach
2.1. Number of focus groups (FG)/interviews (I):
|2FG|
2.2. Number of participants in each FG
FG 1: |10|
FG 2: |24|
2.3. About the FG moderator/interviewer
To make the moderator of our FG was chosen a member of our society that has held various
roles within the region. He was regional minister, party secretary and mayor of political
Campobasso, the capital of Molise.
2.4. Duration of FG/interviews
Number of FG/I
Duration (in minutes)
FG1
FG2
60 min
90 min
2.5. Sampling and FG composition
General description of the sampling (including problems/difficulties in field)
We selected areas of interest on the basis of the instruments of regional programming 20072013 and through desk analysis of the opportunities offered by the area.
In the area of interest, we have selected the major construction companies and enterprises
from the lists of Industrial Association of Molise.
Instead, we had many difficulties in finding real estate experts because the agency on the
territory of Molise not have significant size.
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To gather information on the dynamics of the housing market and industrial areas, we have
consulted data the Regional Observatory of Union of Chambers of Commerce of Molise, of
Agency of Territory and of Consortium for the development of industrial areas and of
building constructores.
FG composition
Number
of FG
Name
participant
possible)
of
(if
Gender
1
R.P.
M
1
S.F.
M
1
R.D.
M
1
G.N.
M
1
S.I.
M
1
M.D.B.
M
1
G.M.
F
1
G.V.
M
1
A.P.
M
1
P.D.L.F.
M
2
P.P.
M
2
2
2
2
2
P.F.
P.D.
C.S.
F.S.
S.C.
M
M
F
M
F
2
2
C.C.
A group of 15
citizens
M
Age
Status
Why was this respondent chosen
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
public
authority
Real estate
Real estate
Real estate
Real estate
public
authority
Mayor of Filignano (IS)
Real estate
Mayor of Frosolone (IS)
Mayor of Busso (CB)
VICE-Mayor of CAMPODIPIETRA
(CB)
VICE-Mayor of ORATINO (CB)
VICE-Mayor of RIPALIMOSANI (CB)
MINISTER OF PESCOLANCIANO (IS)
MUNICIPAL ENGENEER OF SAN
GIOVANNI (CB)
MUNICIPAL ENGENEER OF SEPINO
(CB)
PRESIDENT OF CHAMBER OF
COMMERCE OF CAMPOBASSO
Mayor of RIPALIMOSANI (CB)
Owner of Fiacco&Baranello (CB)
Owner of Melfi srl (IS)
Owner of Sollazzo Company (CB)
Owner of Sollazzo Company (CB)
President
of
the
young
entrepreneurs
of “Assindustria
Molise”
Owner of Cianciullo Company(CB)
Homeowners
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2.6. Incentives
If exists
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3. Findings
3.1. Local economic issues
The main issues are:
1. poor infrastructural
2. age population
3. the settlement pattern of the Region
1. The infrastructures of Molise show obvious shortcomings, may constitute an
obstacle to regional economic development from the point of view of endogenous
growth in terms of attractiveness of the territory by foreign capital. Major areas of
production localization are therefore somewhat penalized by the absence of major
axes transverse connecting East - West. Specifically, the Apennine zones crossed by
both SS 650 and SS 647, the areas are less accessible because of the mountainous
territory makes it difficult to reach the main roads.The rail network extends for 249
km in Molise highlighting, in quantitative terms, an index of budget amounting to
43.3 which is a very low value considering that the indicator for the South shows an
average of almost twice (82.3). The area occupied by the communications
infrastructure is quantified in 172 sq km or 3.9% of the surface region, compared to
a national average of 6.0%.
2. Molise population has a negative natural balance due to the low birth rate and risk
of depopulation of areas characterized by geographical handicap and increased risk
of economic and social exclusion.The average age of Molise is high and undergoes a
gradual process aging because of the depopulation of the region that sees
emigrate, particularly towards the regions of Central and Northern younger. The
share of the total population with over 65 years (22%) is higher than the average
South (17%) and national (19%).The ageing of population has negative impacts on
local labor market and this particularly in more marginal areas of the region.
3. The Molise region presents a settlement model strongly oriented to the population
distribution in "small towns". The region has no urban agglomerations exceeding
100,000 inhabitants, only four municipalities have with a population over 10,000,
among which, however, the only regional capital is placed in Class 50,000 to
100,000. The Molise is therefore a region with local realities small and very small
with a dispersal of the population that is not reflected in other southern regions.
In summary, the reading of the socio-economic problems shows the image of a region from
the low level of competitiveness and territorial attractiveness.
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3.2. Local and area business
The average size of companies in the Region is equal to only 3 employees per local unit.
Furthermore, one third of enterprises in the region has only one employee Only 3% of
enterprises have more 250 employees and no one more than a thousand.
Among the major constraints to development of industry activities in Molise are in particular
the lack of infrastructure area, the distance from markets for the most areas,inadequate - if
not total absence - of real services, and the low presence of corporate culture.
Companies are satisfied the quality of life and socio-cultural services the Region.
Interventions prioritized to attract outside investment in Molise are the system of economic
and fiscal incentives and implementation of services accompanying the industrial settlement
But also a proper policy to promote the area and improvement of industrial areas and
infrastructure.
These considerations were also expressed by most investors and
by opinion leaders
interviewed.
Molise has a qualifiedf offer of human resources : the offer young anfd highly educated
labor, often with previous and qualified work experiences is characterized by a large
availability of graduates in economics, law, agricolture and building techniques.
In region there are important industrial districts, that are rela local producitive system,
charactherized by a high concetration of businesses and the productive specialization of
business systems. The mai manufacturing sectors are food, machianry, machanics and
means of transport; he texitile and the fashion industries; the production and supply of
power , gas, steam and water. In spite of their low incidence n the total added value, the
chamical –pharmaceutical and non-mettaliferous mineral working industries are
characterized by high levels of specialization. In the end, the building industries continues
playing quite a significant role in the regional economy: the statistica provided by ISTAT
confirm its centrality , restructuring ability and potentiality.
3.3. Key local actors and local economic development projects
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The main actor in local development is certainly the regional administration.It provides tools
for local planning and economic resources through the P.O.R. that has the objective of
strenghening regional competitiveness in compliance with the enviromental sustainability of
development processes to foster growth, employement and greater economic
independence.
Furthermore many of the municipalities involved in the Focus are our members, have
benefited from the funds of the operational program development multiregional (P.O.M.)
operated by our society, which financed the development initiatives of enterprises and
municipalities in the territory. Other actors important for developing are the local action
groups
(GAL),
responsible
for
implementing
the
Programme
“Leader”
(RURAL
DEVELOPMENT PROGRAM 2000-2006). (LEADER is the acronym for Liasion Entre Actions de
Developpement de l'Economie Rurale (links between actions for the development of the
rural economy). Born in 1989 as a Community Initiatives is now one of the axes of the
policies of support for rural development (Reg n.1698/2005))
Participants in the Focus consider these important stakeholders for local development
because they are closer to the needs of the area because their Boards of directors are made
by representatives of businesses and municipalities.
These development programs have been successful and many business ventures were born,
were made and have major infrastructure works especially created new employment.
3.4. Resources for economic development
1. In the Molise region are available land in public ownership for the establishment of
industrial and commercial activities.
Molise is a region characterized by businesses of reduced size, a deeply rooting in the
territory and abroad potential entrepreneurial sensitivity. During the years, many large
companies have chosen the region to establish some segments of their production
processes, with a justifies awareness of being able to rely on a favourable content in terms
of: operative conditions, quality of life,positive climate for industrial areas, peaceful and
hospitable enviroments in small towns.
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2. Many of the available public and private property are concentrated in the historic
centers of small towns in the region. In recent years has created strong interest from
local government aimed at recovering the vitality of their historic centers
The tourism industry is experiencing a remarkable and continuos growth.As a matter of fact,
over the last years the region of Molise recorded one of the highest average growth rates in
Italy as its potential is yet to be fully exploited.
The local territory offers further important opportunities for investing in real estate sector.
Many historical and cultural tourist routes are available thanks to a numer of historical
villages which may be enhanced also with a view to a widespread accomodation network.
It is innovative approach which is proving particularly suitable from Molise to enhance
villages and towns wthit interesting centers from the artistic and architectural view points
and is ideal to :recover and enhance ancient buildings which are closed and not used any
longer; avoide new buildings to accomodate tourists.
Widespread accomodation is an initiative aimed at local development and social and cultural
enhancement, an economic opportunity and a business program; it combines public and
private financial resources to provide a great opportunity to revive the local territory.
Who wants to invest in Molise has no difficulty in finding available buildings or areas to
establish their own company: also the prices of land and buildings that are fairly low
compared to other Italian regions. The greatest difficulty is found always in the bureaucracy
and complexity of administrative processes and the fragmentation and dispersion of skills in
public offices.
3.5. Support for the LPA project, community leaders and investors
The LPA provide added value to the project thanks to their networking they can provide the
benefit to potential uses. In fact willingness of local authorities to offer their own facilities to
support business initiatives at all levels, by also streamlining the burocratica and
administrative procedures and reducing certain tax burdens tocols, so as to able to operate
in the best possible enviromental conditions.
4. Conclusions and recommendations
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By focus groups have emerged mainly two possible destinations of public properties
according to the interest of the potential investors and of the local public authorities:

the use of industrial areas

the conversion of public property located in the historic centers for tourist
accomodation.
The recommendation of all is to ensure to the investor concerned technical assistance and
support in handling all part of the administrative and bureaucratic procedures to be
addressed to ensure the success of the investment.
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5. Appendix: the focus group/interview guide in English with the adjustments
made, if necessary
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