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The real estate market shows a number of distinctive features that are yet to be clearly understood at the theoretical level, because of the extreme complexity of its nature of both financial instrument and mere commodity. Moreover, as we know, a long lasting speculative bubble in the housing market was one of the main causes of the great recession. The aim of this chapter is to generate an index to explain how inclusive contextual factors influence the price level of real estate in Genoa, Italy. The authors use the non-parametric methodologies of factor analysis and cluster analysis. The results of the analysis suggest that most of the variability in the fluctuation of the average price of properties is strictly connected to the features of the reference context (such as neighbourhood prestige, type and level of education of residents, access to services, etc.). However, the percentage of unjustified price variability is assumed to refer to the incidence of the intrinsic variables of the estate assets.

In contemporary cities, private actors, such as luxury fashion houses, increasingly participate in projects, affirming themselves as relevant players in urban transformation. Based on the case of “SouPra” district (Milan, Italy), this chapter focuses on the effects of the opening of a fashionable artistic venue on the tourism development. It explores the promotional actions implemented by tourism entrepreneurs after the opening of the Prada Foundation. The analysis leads to two main results: actors in tourism exploit the urban brand conveyed by Prada, which becomes an integral part of the city branding. Fashion houses also act as marketing devices, producing new urban narratives that influence both the tourist and the real estate market.

Luxury fashion brands have started differentiating their investment strategies and enlarging their sectors of activity, for instance, entering tourism. The overlay between traditional behaviors and innovative strategies has left a mark on the cities and neighborhoods. This chapter explores the spatial distribution of luxury tourism infrastructure in Milan. This transition does not affect only preeminent locations, such as monumental squares and high streets, but also places traditionally excluded from the “luxury circuits.” The location of 5-star hotels and premium tourism facilities in Milan (Michelin restaurants and spas) differ from the general tourism infrastructure. The study identifies polarization in the touristic offer and a parallel influence in the real estate market.

This chapter examines the impact of sectoral indebtedness on GDP in Czechia, initially a low-indebted small open economy in which debt dynamics are becoming a major concern. The impact of household debt, non-financial corporation debt and public debt is analysed with the use of local projections based on instrumental variable estimations. The results show a more pronounced influence of household debt compared to non-financial corporation and government debt. Initially, increasing household debt stimulates short-run economic activity, but in the medium run, it limits household consumption and negatively affects output. This negative impact gradually turns into a positive effect in the long run. Non-financial corporation debt has a negative short- to medium-run impact but can have a small positive effect in the long run due to the prevalence of tradable industries. Public debt initially has a short-run negative impact, but then gradually becomes positive. Overall, the findings have implications for macroeconomic policies and the importance of monitoring financial stability.

In this chapter, we aim to analyze the housing market development in Czechia, in particular the development of housing prices over the last 25 years. We quantify and discuss three distinct periods of excessive growth of regional Czech housing prices, identified through the formation of large positive GAPs – (1) before the entrance of Czechia to the European Union (EU), (2) at the onset of the Global Financial Crisis GFC, (3) in 2021. In all these periods, we identify significant differences among regions. We find that GAPs above 15% may be considered an indication of unsustainable long-term housing price growth that will be followed by a correction.

We then employ fixed effect panel data model to determine the drivers of flat and house prices in 14 Czech regions. Our results show that wage growth, migration and crime rate are significant factors affecting the prices of both flats and houses. Nevertheless, the impact of GDP per capita and job market indicators differs between flats and houses. Moreover, we find that higher migration into the region increases the difference between the prices of houses and flats, while increasing GDP per capita growth and crime rate mitigate this difference significantly.