The business cycle

Italy: The housing market recovery

By July 11, 2017 February 18th, 2018 No Comments

The housing market is reviving: transactions are up, price discounts are narrowing and the construction sector’s expectations have risen. Historically low borrowing costs have improved the affordability of mortgages, and we expect demand to strengthen further. However, weak consumer confidence is an important barometer for illustrating that Italy’s potential growth is stuck at zero and, without improvements, no housing recovery can be genuinely sustainable.