The four Engel & Völkers Residential Property Shops in Milan increased their transaction volume by 44 percent last year. “This result is very encouraging,” said Marco Sorbara, Office Manager of Engel & Völkers in Milan. He went on to forecast the development of the market over the current year: “For 2016, we are anticipating a consolidation of property prices in Milan.” Apartments with two to four rooms in strategically good locations are currently in high demand, especially those with parking and a terrace.
Extremely desirable: San Babila and Quadrilatero della Moda
The second largest city in Italy after Rome, Milan is the undisputed capital of fashion and design. 95 percent of the Milan real estate market is dominated by domestic buyers. Most international clients originate from France and Russia. Prime locations that are particularly on trend are San Babila near Milan’s famous cathedral and Quadrilatero della Moda, the fashion quarter with its many boutiques. Engel & Völkers brokered freehold apartments here in the past year for as much as 8,500 euros per square metre. Other prime locations in Milan include the modern business centre of Porta Nuova and the district of Brera, known for its historic palazzi and traditional artist’s boutiques. The highest priced freehold apartment brokered by Engel & Völkers in Milan in 2015 was in Brera. It sold for 9,750 euros per square metre.
Good locations in the west and east of Milan
Pagano, Piemonte and Buonarroti are all good locations in the central west area of the city. Engel & Völkers registered up to 5,550 euros per square metre last year for freehold apartments in these districts. Popular neighbourhoods to the central east of Milan include Indipendenza, V Giornate and Città Studi, where buyers paid up to 5,250 euros per square metre in 2015. All these locations have good transport connections and are especially desirable amongst families. One reason why this group of buyers is increasingly looking to buy real estate are the favourable lending conditions at present.
Outlook: demand is on the rise
The stabilisation of the Milan property market is set to continue this year. Moreover, the extension of the metro network will increase the attractiveness of locations close to the centre – and boost demand for real estate in these areas. The new stability law, known as “Legge di Stabilità 2016”, came into force in January of this year. This legislation is primarily concerned with tax reforms and will, according to Engel & Völkers, have a positive impact on the number of transactions on Milan’s residential property market. This is because owners acquiring a new first home now have 12 months from the point of purchase to sell their former property. In the past they had to have already sold their first home before buying a new property to be eligible for the tax breaks. In addition, companies are now increasingly putting real estate from their portfolio up for sale that was almost unsellable in the past.