Milan’s real estate market: Sustained demand for luxury properties

The upward trend for real estate in Milan continues. The attractive range of properties on offer and the realisation of modern new developments are attracting an ever-larger international clientele to Italy’s leading financial and design centre. The number of transactions increased in 2017 by 8.1 percent over the previous year. In premium locations, both the number of property sales and the property prices have risen. “Milan is advancing into a world-class city and offers interested buyers good investment prospects for the future,” said Roberto Magaglio, Managing Partner of Engel & Völkers in Milan. The sustained demand for luxury homes is set to result in further price rises.

Hamburg - This luxury villa in Porta Genova in the south of Milan is on sale for 1.9 million euros. Its interior spans some 241 square metres, comprising four bedrooms and six bathrooms in total. A private spa and approx. 330 square metres of garden grounds make this villa a rare listing on the Milan property market.

Continuing price rises for residential property in city centre

The highest priced addresses in the city include the artists’ quarter Brera in the historic Old Town, the fashion quarter Quadrilatero with its renowned designer boutiques, and San Babila near the famous Milan Cathedral. Prices per square metre here for particularly exclusive properties rose by 17 percent in the first half-year of 2018 to 15,000 euros (2017: 12,800 euros). Buyers are looking for top-quality, renovated freehold apartments in these quarters. Smaller and medium-sized property are especially sought-after, and constitute the largest share of the market at 43 percent. Prices here are determined by such criteria as location and level, as well as features like a terrace or balcony. Interest from international clients centres above all on prestigious apartments in historic buildings. Alongside Italian buyers that make up the majority, clients come increasingly from China and the UK, and invest in city apartments as a second home, or as a capital investment for rental.  

Premium location in the west of the city: CityLife

Residential addresses in the west of Milan are becoming ever-more desirable. Domestic clients, predominantly married couples and families, are showing increasing interest in the new urban quarter “CityLife” on the city’s former exhibition grounds. High-end designer apartments have taken shape here, featuring state-of-the-art technologies and eco-friendly standards. Freehold apartments in this location sold for up to 11,400 euros per square metre in the first half-year of 2018. In addition to good transport links, the quarter boasts a large park and a wide range of shopping and recreational facilities in the newly opened shopping mall. The business district in the heart of the quarter, where many residents work, makes “CityLife” particularly attractive among professionals too.

Hamburg - This luxury villa in Porta Genova in the south of Milan is on sale for 1.9 million euros. Its interior spans some 241 square metres, comprising four bedrooms and six bathrooms in total. A private spa and approx. 330 square metres of garden grounds make this villa a rare listing on the Milan property market.

Premium location in the north of the city: Porta Nuova

Another large-scale project that has put Milan on the map as a location for real estate investments is “Porta Nuova in the north of the city. Futuristically designed residential towers now grace Milan’s skyline here. The luxury residential complexes offer a location with convenient transport links, as well as meeting client wish for pioneering architecture and green open spaces close to the city. The quarter is very popular among both national and international search clients. In the first half-year of 2018, freehold apartments in “Porta Nuova” fetched top prices per square metre of 13,500 euros.

Outlook: A good time to invest

“We are expecting the level of buyer demand to remain high in Milan, as the influx of residents to the city centre and up-and-coming new urban quarters will continue to rise,” said Roberto Magaglio, predicting the development of the real estate market. Milan offers all the amenities of a major city along with the exclusivity of a sought-after residential location in northern Italy. As such, the city meets the needs of local search clients looking for a primary place of residence, as well as those of international buyers looking for a residence abroad or an attractive capital investment. According to Engel & Völkers, those areas set to see future positive development will include the quarter Magenta Monti Pagano in the city centre, Indipendenza-Cinque Giornate in the east, and Porta Romana in the south.

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