Analysis of Real Estate market Cycles: an application on Italian data

Abstract

Using Italian data, on the basis of economic theoretical approach of the honeycomb cycle by Janssen, Kruijt and Needham in 1994, this article proposes a further development in the study of the dynamics of real estate housing market in Italy. Using the market indicators, we plot the “honeycomb cycle” graph for each region and greatest Italian cities. Regions showing similar patterns are grouped using cluster analysis method. This practical work reaches its particular goal examining the national territory in terms of development and its evolution.