A feasibility analysis of the refurbishment investments in the Italian residential market

In the present research the financial convenience of refurbishment investments concerning residential properties located in the Italian territory was analyzed. The study aimed at determining the unit profit range for a potential investor deriving from the refurbishment of residential properties and contextualizing the analysis to the Italian provincial capitals. With reference to the three macro-areas that for geographic and socio-economic differences define the Italian territory, namely the North, Center, South and Islands, three financial convenience maps were elaborated with the aim of providing a useful support in the investment choices of private and public operators. In particular, the financial convenience maps could guide the private operators in their investment decisions through a higher awareness of the achievable earnings and could help to identify the optimal allocation of financial resources due to the increase in the market value of the refurbished property. For the public administrations, instead, the study will be a useful reference for the calibration of the fiscal policy decisions regarding the incentives for building refurbishment at the different territorial scales and of the tax revenues related to the increase in the market value of the refurbished properties.