The effects of covid on the luxury real estate market

The luxury demand in Italy does not stop, but the effects of the pandemic are being felt. The luxury real estate market develops new trends, changing supply and demand based on the particular moment we are experiencing.

With the number of customers in the luxury sector remaining unchanged or only slightly decreasing, the number of those who require the presence of specific parameters and living comfort increases.

First of all, the location of the property in a discreet and quiet area but not too far from the city.

If we take the metropolises of Rome and Milan as references, we immediately notice the new trends in vogue in the luxury real estate sector. The effects of Covid in these cities mainly involve the rental sector (in which there is in fact a slight decline in rents).

The purchase prices, on the other hand, hold up quite well compared to previous years, especially in the Lombard capital.

In Rome, the effects of Covid are manifested in the change in housing needs: if before the pandemic the demand for real estate was concentrated above all in the area of ​​the historic center and Parioli, today the Romans or those who want to live in the capital prefer quieter areas with spaces green in the immediate vicinity.

The experience of the lockdown has awakened, in many, the desire to spend more time in contact with nature, while not completely giving up the comfort of the city.

The trend of renovated properties is always lively, especially in Rome: the range of average prices obviously changes depending on the position and location, but generally does not differ much from that of 2019.

According to experts in the sector, the speed of recovery will depend on the investments that will be made in the furniture and decor of the city (also to stimulate tourism, once the health emergency is over), in business and in events related to the business world. and University.

The last few months, however, give luxury operators and investors hope: Covid has not affected the demand and supply of luxury properties, which travel at a steady pace and with the wind still in its sails.