The fragility of the Italian economic situation has not affected the positive development of the residential property market in Milan and Rome. According to the “Market Report for Residential Property in Milan & Rome 2019” published by Engel & Völkers, there is a very high demand for luxury real estate in the two Italian metropolises. “We are very happy with the positive trend the Italian real estate market has experienced. In the first half of 2019 we observed interesting property listings and a rise in international clients, especially in Milan and Rome, which we are expecting to grow in the future,” says Alberto Cogliati, Expansion Manager of Engel & Völkers Italy.
Italy’s fashion and design capital witnessed an increase in real estate prices in the first semester of 2019. This upward trend was particularly strong in the sought-after, historic Quadrilatero and Brera quarters where top prices per square metre reached 18,000 euros (2018: 17,000 euros). Central districts such as San Babila and Castello-Foro Bonaparte fetched similar price levels. “In the wake of the Expo and the awarding of the 2026 Winter Olympics to Milan and Cortina d’Ampezzo, we are seeing increased international interest in the Milan property market. This high demand will lead to further price increases in the coming years,” says Roberto Magaglio, Managing Partner of Engel & Völkers in Milan. In addition to properties in the historic city centre, investors in the city are tending to gravitate to real estate close to universities, hospitals and large corporations.
In the first six months of 2019, demand from national buyers and international investors from Northern Europe focused in particular on penthouses in central locations with terraces, garages and views of historic monuments. Top prices per square metre here for freehold apartments reached 12,000 euros. The fact that luxury properties matching these criteria in prime locations were so scarce in supply only boosted the market. “In the months to come, we expect growing demand in the historic centre and in top locations such as Parioli, San Giovanni and the new EUR district (Esposizione Universale di Roma),” says Helio Cordeiro Teixeira, Managing Director of the Engel & Völkers Market Center Rome.
Engel & Völkers anticipates an increase in the number of property sales in both Italian cities over the coming year. In Milan, a further price rise in prime locations is forecasted due to increased interest from foreign investors. In Rome too, demand is expected to remain high in the historic centre and in prime locations, with prices set to remain stable.