The market for residential property in Milan is enjoying increasing levels of demand, according to an Engel & V├Âlkers report. Whereas interested buyers have been hesitant in recent years due to the economic recession, the number of transactions in the first quarter of 2017 rose by 13.8 percent over the same period in the previous year.
One major contributing factor here was the EXPO world exhibition held in Milan in 2015, where the local property market was brought to the attention of the many visitors to the city.
“In view of the attractive supply of properties on offer, now is a good time to be investing in residential real estate in Milan,” says Roberto Magaglio, managing partner of Engel & V├Âlkers in Milan.
Sought-After Districts in the Old Town and the West
Buyer interest in the Italian fashion and design capital is focused in particular on large and luxurious apartments for sale. Prices here depend on criteria such as the location and building story. Amenities like balconies, terraces and parking spaces are also important factors. New building developments in very good locations achieved the highest prices per square meter so far in 2017, at 10,000-11,000 euros. Sale prices of up to 15,000 euros per square meter were reached for especially exclusive properties.
One of the prime locations in the city is the artists’ quarter Brera in the Old Town. Its charm stems from its historic palazzi, galleries and markets. Not far from here is the Quadrilatero della Moda with its renowned luxury fashion boutiques, jewellers and interior stores. San Babila, close to the famous Milan Cathedral, is also one of the city’s most desirable addresses. These areas are especially popular among international buyers. Italian nationals tend to prefer residential districts in the west of Milan. Buyer interest is focused here on addresses in the direct vicinity of the Corso Magenta, Via Vincenzo Monti and Via Mario Pagano close to the Semplon Park with the famous triumphal arch “Arco della Pace.”
National Buyers Dominate the Market
Milan is primarily a first-home market. Around 90 percent of buyers are Italian citizens. The remaining 10 percent are international buyers originating from countries including France, Russia and the U.S.. The majority of search clients are either first-time buyers or homeowners looking for a larger, or, in individual cases, smaller property. In addition to owner occupants, both national and international investors are active on Milan’s property market. In most cases they are looking for real estate as a capital investment for rental.
Outlook: Extension of Milan Metro Set to Boost Residential Property Market
Engel & V├Âlkers forecasts a continuing upward trend on the market for residential real estate in Milan. The level of demand will increase even further in 2018 in some locations.
“Over the coming months and years, we anticipate a rise in those areas close to the M4 metro line currently under construction,” Magaglio says.
Other districts currently developing positively are located near the modern business centre Porta Nuova in the north of Milan and close to the Fondazione Prade, not far from the Luigi Bocconi University of Economics in the south.
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