Real estate beats the stock market in the long run. If we extend the observation period of the two investment alternatives to a 30-year horizon, we note that house prices in Italy have grown more than the Piazza Affari index. And, consequently, a hypothetical investor who had bet on the purchase of an apartment rather than shares would have made a profit.
This is what emerges from an elaboration by Il Sole-24 Ore, published on Sunday 1st September.
In particular, the Scenari Immobiliari index (which expresses the trend of house prices in Italy and is the only one available in the long term) went from a value of 238 in 1972 to one of 4,497 at the end of 2001, with an increase of 1,789.5%, while the Comit grew, in the same period, by 1,092 percent: the gap, therefore, is 700% approximately in favor of real estate.
Taking shorter time periods into consideration, however, photography changes: especially in the last decade the trend has completely reversed. Thus in the last ten years the stock market has clearly outperformed the stock market, with an increase in the stock market index of approximately 200%, despite a minimal change in the nominal prices of real estate.
source: Il Sole 24 Ore
Grimaldi Padua
Padua - 35137 - Via G. Matteotti, 27
e-mail: padovacentro@grimaldifranchising.it
Tel. +39 49 663 033 - VAT number 05301660287
Grimaldi Cadoneghe
Cadoneghe (PD) - 35010 - Via G. Franco, 2/A
e-mail: cadoneghe@grimaldifranchising.it
tel. +39 049 88 736 56 - VAT number 05322440289