MILAN REAPS BENEFITS OF HOUSING BOOM AS ITALY EMERGES FROM RECESSION

Demand for property in the luxurious city of Milan is on the rise as Italy makes it way out of the recession.

Due to the economic slump in recent years, interested buyers have been hesitant to invest in Milan; but all of that is changing fast. This is in part because of the EXPO world exhibition held within the city in 2015. The global event put eyes back on the fashionable city’s property market.

Buyer interest in the Italian fashion and design capital is focused on the sale of large and luxurious apartments. Amenities like balconies, terraces and parking spaces are important factors.

New building developments in high profile locations achieved the highest prices per square metre in 2017, at 10,000 to 11,000 euros. Sale prices of up to 15,000 euros per square metres were reached for especially exclusive properties.

One of the prime locations in the city is the artists’ quarter Brera in the Old Town – famed for its historic palazzi, galleries and markets. Also seeing a price-surge is Quadrilatero della Moda, with its renowned luxury fashion boutiques, jewellers and interior stores.

While Milan is primarily a first-home market, as around 90 percent of buyers are Italian citizens, international buyers are also champing at the bit to get property in San Babila, which is one of the city’s most desirable addresses. This 10% originate from countries including France, Russia and the USA and statistically the buyers are homeowners looking for a larger or – in individual cases – smaller properties.

“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 & Völkers in Milan. “Over the coming months and years, we anticipate a rise in those areas close to the M4 metro line currently under construction.”