Vatican outsources real estate management amid financial crisis
VATICAN CITY — The Vatican is grappling with a severe economic crisis, prompting Pope Francis to implement drastic measures to stabilize the Holy See’s finances.
By the end of 2024, the Administration of the Patrimony of the Apostolic See (APSA) will transfer the management of its properties to the real estate company Tecnocasa.
This move is part of a broader strategy to outsource real estate management and reduce operational costs.
Outsourcing and staff reductions
The decision to outsource property management marks a significant shift in the Vatican’s approach to handling its assets.
Tecnocasa, which already manages properties for Propaganda Fide or the Congregation for the Evangelization of Peoples, will take over the management of APSA’s properties. This change aims to streamline operations and reduce costs associated with maintaining the Vatican’s extensive real estate portfolio.
In addition to outsourcing, Pope Francis has initiated a strict spending review, resulting in the dismissal of 600 employees, with another 300 expected to follow. The Vatican’s unique labor environment, where trade unions are not recognized, has facilitated these staff reductions.
The Pope has also eliminated the Labor Office, which previously handled employee disputes, and dismissed 15 labor lawyers, leaving employees without a formal mechanism to address labor issues.
Loss of sovereign wealth fund and global property sales
Vatican’s financial crisis was exacerbated by the loss of the Vatican’s sovereign wealth fund, managed by experts from the Italian Guardia di Finanza. These funds have disappeared into ‘transparent’ obscurity, leaving the Secretariat of State unable to cover the costs of personnel and maintenance of its 187 apostolic nunciatures worldwide.
To address the financial shortfall, the Vatican has begun selling luxury properties across Europe. The Secretariat of State has already sold a prestigious property near the Arc de Triomphe in Paris, with the proceeds partially funding the construction of a church in a Parisian suburb.
Another high-value property at 10 Avenue Président Wilson in Paris is currently on the market. In Vienna, an 18th-century mansion at 31 Theresianumgasse is also up for sale.
The Vatican’s divestment strategy extends beyond Europe. In Asia, the nunciature in Tokyo was sold for $200 million, with more properties in the region expected to follow.
In Italy, the Holy See owned over 4,000 properties in 2023, many of which have been sold or are in the process of being sold to meet financial needs.
Criticism of the Praedicate Evangelium
Aside from its financial challenges, the Vatican is also struggling with the criticisms of the Praedicate Evangelium reform.
This legislation, intended to overhaul the Roman Curia—or the administrative institutions of the Holy See—requires each sector of the Curia to cover its own operating costs.
Experts argue that this approach is “unrealistic and potentially harmful” as it would be challenging without the sovereign wealth fund and would exacerbate the Vatican’s financial woes.
