• New-build property prices reach 15,000 euros per square metre
• Foreign buyers are attracted to central locations
The real estate market in Milan is benefiting from increasing demand levels. After the reluctance to buy property in recent years due to economic recession, the number of purchases in the first quarter of 2017 increased by 13.8 per cent more than the same period last year.
The real estate market in Milan is benefiting from increasing demand levels. After the reluctance to buy property in recent years due to economic recession, the number of purchases in the first quarter of 2017 increased by 13.8 per cent more than the same period last year..
Historical Centre and western area are the most sought after
In the Italian capital of fashion and design, the interest of customers focuses especially on large and luxurious flats for sale. Prices depend on criteria such as location and build quality. Features such as balconies, terraces and parking spaces are also important factors. Recent construction projects that are in very good locations have already reached prices of between 10,000 and 11,000 euros per square metre this year. The exclusive properties especially have already achieved sale prices of up to 15,000 euros per square metre.
One of the city's privileged places is the artists' quarter, Brera, in the Historic Centre. Its charm stems from the historic palaces, galleries and markets that are present there.Not far is Quadrilaterodella Moda, with its well-known luxury boutiques, jewelery shops and interior decoration shops. San Babila, near the famous Milan Cathedral, is also one of the most desirable locations in the city. These areas are especially popular among international buyers.
Italian citizens tend to prefer residential areas in western Milan. In this area, the main focus of buyers' interest are the addresses in the immediate vicinity of Corso Magenta, Via Vincenzo Monti and Via MarioPagano, near Semplon Park with the famous Arco della Pace.
National buyers dominate the market
The real estate market in Milan is, above all, for first time buyers. About 90% of buyers are Italian citizens. The remaining 10% are international buyers from countries such as France, Russia and USA. Most customers are either first-time homebuyers or those looking for larger properties. In addition to the owner-occupiers, Italian and international investors are also active in the real estate market in Milan. In most cases, they look for real estate as a capital investment solution for letting purposes.
Prediction: Milan Metro extension expected to boost residential market
Engel & Völkers expects continued growth in the residential real estate market in Milan. It should increase further in 2018 in some areas. "In the coming months and years, we anticipate an increase in the areas near the M4 subway line that is currently under construction", says Roberto Magaglio. There are also other areas that are developing favourably, especially those near the modern Porta Nuova business centre in the north of Milan and close to Fondazione Prade, not far from Luigi Bocconi University of Economics in the south.