Relationship Between Real Estate Indices and Inflation Trends: An Application to the European Residential Property Market

The present paper aims to analyse the European residential real estate market through a set of indicators elaborated by Eurostat. By means of the use of correlation analysis, the comparison of several housing market indicators related to European nations enables the creation of a synthetic and unambiguous representation of the residential property market trend, as well as the comprehension of the dynamics that are seen within each nation and of the relationships that exist between the indicators with nations. The use of deflated indicators and the analysis of inflation trends has allowed us to highlight the peculiarities of the Italian residential property market and its ability to act as a safe-haven asset.