Properties, good refuge for many people.

People choose property, especially a luxury one, as a safe haven. What are the reasons?

The whole world is going through one of the most complicated historical moments since the post-war period, covid and conflict in Ukraine have created strong instability on the markets, causing a negative rebound on the entire global financial system.
Inflation and commodity prices have soared, purchasing power has collapsed and consequently financial stability has had serious repercussions.
In these cases the difficulties are both for those who do not have economic / financial resources, but also for those who have them and do not know how to protect their assets. It is then precisely in the most critical and uncertain moments that investors tend to prefer the safe haven asset, or a product chosen precisely because it is at least able to preserve its value over time.
Someone chooses gold, other foreign currencies and still others watches, but many are literally diving into real estate in Italy, preferably luxury.
The reasons are quite simple.
The properties that are for residential / residential use or used as a second home, certainly guarantee a constant price and in some cases even significant capital gains. Leased properties, on the other hand, are also able to ensure a constant income.
The luxury property is certainly the product that can offer guarantees of stability and price increases. The reasons are mainly due to the principle of scarcity: the product is missing, requests increase and consequently the price increases.
But which property can be defined as a safe haven?
Certainly the properties in large cities of art or near tourist sites (sea, lake, mountains), but also historical buildings. The price is not in itself a guarantee of a safe haven and as always it is important before making a choice, weighing all the solutions and remembering that historically after each crisis there has been a dizzying rise in the markets.
Too bad no one can predict the exact times.

CURATED BY: Claudio Citzia Founder Luxforsale