Impact of socio-economic variables on property construction cost: evidence from Italy

For an accurate real estate cost evaluation, it is important to break down and analyze its various technical and socio-economic cost components. Carefully examining the factors coming to bear on the final cost of a property enables a more effective project management and a greater control over the feasibility of the project concerned. In the present study, we analyze a sample of 70 new residential properties built in Italy with the aid of an interpretative model. The approach takes the strictly technical characteristics of the building sector into account, but also identifies the close correlation (little studied in the sector\u2019s scientific literature) between the trend of construction costs and socio-economic conditions of the reference setting such as the workforce\u2019s mean years of schooling, the housing market trends, and the average per capita income