Inflation: how will it affect the luxury real estate market?

The increase in renunciation - although somewhat expected by the experts - is forcing the economic macro-sectors to review their strategies, including luxury real estate. The Istat revelation of October 2022 stopped the percentage at 11.8%, a worrying figure that differs greatly from the trend of recent months and, above all, from the ECB's objectives (that is, to keep it around 2%). In view of this information, we are therefore anxious to understand what the effects of the inflationary increase could be on luxury real estate.

How will the real estate sector move?
What will the prices of houses and luxury properties do? Will they increase or decrease? Obviously, no one has a glass sphere, so for now we can only enter the realm of speculation.
As expected, the two main schools of thought have diametrically opposite views. On the one hand, there are those who argue that belonging can have a negative impact on the luxury real estate market, especially in those cities (Milan e Roma in primis) where increases in value have been exponential in recent years. The most catastrophists even tend to foresee the bursting of an unspecified "real estate bubble", as a natural consequence of the increase in energy costs and the procurement of raw materials.

The positive scenario
The more optimistic version, on the other hand, foresees a continuous and constant increase in prices, thanks to a trend that the Luxforsale portal has also repeatedly confirmed: the housing demand is increasingly driven. To this are added two data that should not be underestimated, one internal and one external. The first is the never-dormant fascination that real estate investment stimulates in Italians, the second instead is the growing number of foreign investors who decide to focus on Italy, both for the lower prices compared to the competition from the main European cities, and for the undeniable architectural charm of our cities.