Rising building material prices: impact on residential real estate market

Paola Amoruso, Massimo Mariani, Domenico Frascati and Francesco d'Ercole

ERES from European Real Estate Society (ERES)

Abstract: After the crisis due to the pandemic, 2022 has generally been characterized by recovery of construction sector; however there has been recorded a constant upward trend in prices of building materials. The Italian government, with the Ministerial Decree of the Ministry of Infrastructure of 12th May 2022, confirms the substantial increase in building prices in the last year in Italy. The main causes of this trend have been identified in particular geopolitical events as the war in Ukraine and the rising cost of energy. In the light of the above, various measures aimed at countering the substantial increase in the materials of construction products have been implemented through various regulatory changes. The present research aims to analyze real estate market behavior characterizing the Italian context relating it to price trend of building materials. The main practical implication of this research is to investigate the variation of house prices, distinguishing new buildings from existing ones, compared to the cost of raw materials, in order to forecast the consequence of geopolitical events on residential market.

Keywords: House Prices; price building materials; real estate; Residential Market (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
New Economics Papers: this item is included in nep-cis and nep-ure
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