Real estate: luxury is sustained by foreigners

The Italian luxury real estate market is in good shape despite a turbulent macroeconomic environment. The main credit for this goes to foreigners: in 2023, 70% of all purchase transactions were concluded by foreign clients, while Italians accounted for 30%. In most cases, the purpose of purchase remains the use as a first or second home. The speculative purpose is only 10-20%, with the exception ofRome, where purchases for investment account for 30% of the total. A new report by Gabetti Research Department, based on data from Santandrea Luxury Houses&Top Properties, entitled "Luxury Real Estate Market" analyzes the main indicators of the premium real estate market in order to present a detailed picture.

In recent years

The global and Italian luxury markets have been characterized by various events, such as the pandemic, the conflict between Russia and Ukraine, inflation, and rising interest rates, which have created a rather unstable macroeconomic picture. Nevertheless, the luxury residential real estate segment continued to grow due to the high number of high-spending individuals who allocate a portion of their wealth (approximately 15%) to this category of property.

Milan is the main player in the luxury market.

Milan continues to be a key player with strong dynamics thanks to large projects and investment opportunities in the real estate sector. With theMilan-Cortina 2026 Olympics, the city is set to experience a construction boom over the next two years that will transform its appearance, especially in the southern district.

The future of real estate is closely tied to demographics

Stepping beyond luxury, the real estate market will be significantly influenced by the demographic crisis in the coming years. Population projections will mainly affect the sizes of apartments, as young people are buying fewer and fewer houses. In a recent interview with Sole 24 Ore, sociologist Roberto Poli from the University of Trento explained: "By the end of the century, Italy could have 10-20 million fewer residents. This presents us with complex problems in every respect, challenges that we must try to address immediately."

"The data from our report shows that the luxury market is in good shape, despite the turbulence in the macroeconomic environment. The purchase of this type of property does not involve the use of credit funds, unlike regular residential real estate. In the luxury segment, potential buyers mainly acquire properties out of a desire to own exclusive assets, 'unique works of art,' reports Leone Rignon, CEO of Santandrea Luxury Houses & Top Properties."