According to Engel & Völkers' latest international market report, residential properties in Milan are enjoying increasing levels of demand. In recent years, buyers in this global capital of fashion and design have hesitated due to economic recession, but the number of transactions in the first quarter of 2017 evidenced a hopeful outlook, rising by 13.8 percent over the same period in the previous year. Additionally, the EXPO world exhibition held in Milan in 2015 was a major contributing factor to this uptick as the desirable local property market was brought to the attention of worldwide visitors. Roberto Magaglio, Managing Partner of Engel & Völkers Milan, validates that indeed, “in view of the attractive supply of properties on offer, now is a good time to be investing in residential real estate in Milan."
Sought-After Districts in the Old Town and West
At present, buyer interest is specifically focused on spacious, luxurious apartments for sale. Amenities such as balconies, terraces and parking spaces are also huge value-adds, and new building developments in prime locations achieved record-breaking prices selling at an average 10,000 to 11,000 euros per square meter. One of these prime locations is the city's artists’ quarter Brera located in the Old Town, its charm seeping from the corners of its historic palazzi, galleries and markets. Not far from Brera is also Quadrilatero della Moda with its renowned luxury fashion boutiques, jewelers and interior design stores. San Babila, close to the Milan Cathedral, is also one of the city’s most desirable addresses among international buyers. Tired of tourists? Italian nationals prefer residential districts in the west of Milan where buyer interest is focused on Corso Magenta, Via Vincenzo Monti and Via Mario Pagano, close to the Semplon Park and the famous arch Arco della Pace.
Domestic Buyers Dominate the Market
With approximately 90 percent of today's interested home buyers being Italian citizens, Milan is primarily a first-home market, with the remaining 10 percent of international buyers coming primarily from France, Russia or the United States. Of all these home searchers, the majority of are either first-time homeowners or more seasoned clients looking to upsize or downsize—but only in square footage, not in price. In addition to owner-occupants, both domestic and international investors are active in Milan’s property market, looking for lucrative capital real estate investment in rentals.
The Final Outlook
Engel & Völkers forecasts a continuing upward trend in Milan's residential real estate market with the level of demand increasing even further in 2018. “Over the coming months and years, we anticipate a rise in those areas close to the M4 metro line currently under construction,” said Magaglio. Other popular developing districts 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.