SANTANDREA: II SEMESTER 2010 REPORT

Prices in the fine-luxury property market followed by Santandrea showed adownturn of 1.5% in the second semester of 2010. Prices are stable in Milan andRome. Considerable slump of values reported in Naples.

The investment demand is reasonable, peaking in Venice and in Naples. InMilan, about 90% of the demand is for direct use as first homes. The trend isfor two and three-room apartments, restructured and awaiting restructuring, incentral and prestigious zones, for temporary leases at 2000-5000 euros a month.The budget for 50-70 m² sizes on upper floors, well located usually vacillatebetween 700 and 800 thousand euros. Expected returns are 2-2.5%, there is moreof a focus on price revaluation for fine properties in top locations. Returnson rents touch the 4% mark only in Florence.