Real estate market 2023: what to expect?
What are the forecasts for the real estate market in 2023? After an interesting 2022 both in terms of the number of transactions and the average selling price of properties, the trend of the real estate market in 2023 sees a new scenario appearing on the horizon. But for whom? And how reliable can the forecasts be?
Real estate market trend in Italy: between inflation risk and the cost of raw materials
The buying and selling of properties experienced an interesting recovery in 2022, due to various factors: the purchase facilitation for the under 35s, tax relief for renovations, the possibility of accessing mortgages with still low rates.
In this opening of the year, the 2023 scenario is not entirely clear and rosy and encouraging forecasts alternate with downward forecasts. A series of economic situations, from the war to the increase in the cost of living, suggests a slightly more contracted 2023 and a decline in terms of sales, more markedly in the South. The increase in prices, however, could compensate for the situation resulting in a stable general situation.
From this general scenario relating to sales, the luxury market must be separated: if we talk about luxury properties for sale, in fact, the situation changes radically.
Because the luxury real estate market in Italy is another story
The luxury real estate market travels on a separate track: availability of capital, renovation costs and other issues do not represent a problem for buyers. Unlike the common real estate market, any increase in prices can be dealt with more easily.
Therefore, the forecast for 2023 does not include a drop in demand which, on the contrary, thanks above all to foreign investors, remains high.
The difficulty, for those who want to buy a luxury property, is rather in the availability of properties, especially in large cities such as Milan or Rome, where requests exceed supply. This is why a still rather lively luxury market in Italy is expected for 2023, characterized by a further increase in prices, with differences between one city and another.
Supply and demand of luxury properties in Milan
Milan represents, in Italy, a hot area, where the demand for luxury properties, higher than availability, causes prices to rise even in 2023. The secret is in a dynamic, high-profile real estate market, where old and new buildings offer a variety of valuable solutions up to the highest expectations of luxury.
In particular, the urban redevelopment projects already underway in view of the upcoming Milan-Cortina 2026 Olympics have raised the price of properties in Milan’s luxury districts.
But what are the luxury properties in Milan most requested? Undoubtedly those located in the most in, namely the classic Duomo, Sempione, Porta Venezia, Porta Nuova, Buenos Aires. These are large penthouses or apartments, located in exclusive contexts and equipped with every type of comfort.
The most coveted plus? The outdoor space. Whether it’s a terrace or a private garden, those who buy a luxury property also want to have an exclusive and reserved outdoor area.
Barbara Magro Luxury Real Estate - We cure the best luxury properties for sale
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This post was written by Fabio