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Milan, Italy: High demand for new developments and properties with large outdoor spaces

 The recently published “Market Report for Residential Property in Milan first half year 2021” by Engel & Völkers, underlines a strong activity of real estate transactions in Italy’s city of fashion. “Since the coronavirus pandemic, we have noticed that in the top-end segment there has been a trend towards new and sustainable buildings with high quality interior designs that offer the comfort of larger and more refined indoor and outdoor spaces,” says Marco Sorbara, Sales Director at Engel & Völkers Milan. “This new tendency is so deeply rooted that it will also influence the development of the next real estate constructions that will be built in all areas of the city,” he continues. The first half of 2021, as previously predicted by Engel & Völkers, has seen the stabilizing of prices in the high-end market and the growth of the number of owner-occupied homes.

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- In the elegant Via Monte Rosa, walking distance from Sempione Park and Castello Sforzesco, Engel & Völkers offers an exclusive and charming residence for sale at the price of 5.25 million euros. The property offers eleven bedrooms and eight bathrooms, a gym, an internally connected lift, a large garden and several terraces on four floors. (Image source: Engel & Völkers Milano Porta Venezia)

Prices per square meter have remained substantially high

In the city center the attractiveness of renovated apartments or new developments that offer high level services is on the rise. These types of properties in districts of the historic center such as Quadrilatero, Brera and Castello-Foro Bonaparte reach peak square meter prices of up to 19,000 euros (a slight increase compared to 18,400 euros per square meter in the second half of 2020). National buyers who make up 85 percent of the total clientele, mostly search for first homes here, whereas international buyers (coming from France, UK and USA) are currently a few due to corona restrictions. Further sought-after areas are Cordusio, San Babila and Duomo, in the heart of Milan, where square meter prices for flats fluctuate between 16,000 and 17,000 euros per square meter. The ultimate tendency for buyers is to search for flats in City Life, the modern residential, commercial and business district in the northwest of Milan, where prices start at 7,700 euros per square meter and reach up to 13,000 euros for an apartment. The western neighborhood of San Siro particularly enjoys an appreciation in request due to green spaces and large-sized properties, where villas reach prices of up to 2.2 million euros. Engel & Völkers has also noticed an increased attractiveness of Central-Loreto and Isola-Gioia-Maggiolina in the Northern area, where prices started to rise again varying between 4,500 and 6,900 euros per square meter and a top price of 1.55 million euros for a single-family villa.

Outlook: Increased demand from international buyers

Engel & Völkers predicts an increase in activities in the real estate market once the pandemic restrictions will dissipate. “In the upcoming months we will see a pursued growth in attractivity for new and renovated developments, as well as continued preference for properties with outdoor spaces such as gardens, balconies or terraces,” says Roberto Magaglio, Licence Partner of Engel & Völkers Milan. “Once the pandemic is under control, we also expect an increase in international buyers who will purchase properties for second homes or investment purposes, in perspective of the Winter Olympic Games Milano-Cortina in 2026. Hence, we will also see a rise in the rental market,” he concludes.

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