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Milan. An overview of the real estate market

Milan is the largest business and financial center of Italy and world capital of fashion, so buying real estate, both residential and commercial, there will always be favorable, and rental housing can bring significant income.
05.11.2013
Author: Maria Cooper
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Milan is the capital of the Italian region of Lombardy, which is located in northern Italy. It is the second largest city in Italy after Rome, with about 1.35 million people living here. Among other Italian cities, Milan is distinguished by its elegance and energy.

This city is known worldwide as the fashion capital of Italy and as one of the fashion capitals of Europe and the world. Dolce&Gabbana, Giorgio Armani, Valentino, Versace, Roberto Cavalli, Prada and Gucci are just a short list of famous global brands that are located here.

People come to Milan not only to learn the latest trends in the fashion world and shop in boutiques of famous designers. Being a major financial center and the business capital of Italy, Milan is of great economic importance for Italy, many international companies have offices here. This is an international city - on its streets you can meet the French, Germans, Russians, British, Arabs, and residents of many other countries.

Milan is one of the three most expensive cities to buy a home in Italy, including Rome and Venice. More than 13% of the city's residents are foreigners, and more than 10% of real estate purchases are made by foreign buyers. The Milan real estate market is constantly growing. The demand for housing here significantly exceeds the supply, and this trend does not allow prices to fall. It is profitable to rent a house here, and it can bring a good income. There are many universities of design, fashion, and art here, including NABA, Marangoni, Politecnico, IED, IULM, Catolica, and Bocconi. Students from all over the world come here to study, and a large number of apartments in the city are rented to students.

In addition, Milan was chosen as the venue for the famous international exhibition Expo 2015, which will be held from May 1 to October 31, 2015. Milan is already preparing for this exhibition, which will attract many visitors from different countries. Such an event will lead to a significant increase in prices for the purchase and rental of real estate in the Italian metropolis. In preparation for this international event, the city has turned into a huge construction site, and its appearance is changing every day. After a long thirty-year moratorium on new construction, the city is changing for the better, and its investment attractiveness is increasing.

This modern metropolis harmoniously combines the past and the present. Like any Italian city, Milan is distinguished by its rich architecture – the Duomo Cathedral, the La Scala Opera House, the Castello Sforzesco castle, as well as the artistic treasure of the city – the fresco "The Last Supper" by Leonardo da Vinci in the church of Santa Maria.

The famous Italian Lake Como is 40 km from the city, and it will take less than an hour by car. Foreign buyers of real estate are forced to compete with the wealthy residents of Milan, who prefer to leave the city for their lakeside homes on weekends. In August, the city is almost empty - the inhabitants of Milan go to relax on the lakes.

How to get there

Milan International Airport (Malpensa) is the second largest air gate in the country. Moscow and Milan are connected by direct flights of Aeroflot, as well as the Italian airline Alitalia. Milan also has Linate Airport, which serves flights between European cities and domestic flights.

Real estate market

In Lombardy, Milan is one of the most expensive destinations to buy real estate, followed by lakes Como, Garda and Maggiore.

A significant increase in housing prices in Milan occurred between 2000 and 2005, and in 2006-2007 this growth stopped and in 2008, when the financial crisis hit, prices and the volume of transactions in the city's real estate market decreased. In Milan, prices have changed slightly since the crisis, as there is always a demand for real estate, especially in the luxury housing segment, which has remained stable. Demand and prices have significantly decreased for housing in the affordable real estate segment. In 2011, the Milan real estate market began to revive.

Now many sellers are ready to make concessions. The discount amount often depends on the purchase price. If, for example, you buy an object worth 500,000 euros, then the deal is about 20% lower than the initial cost.

In Milan, the purchase of apartments is in great demand. Many of the old buildings in the city (the palazzo) have been converted into apartment houses. They are located in the city center, and their cost is quite high – as a rule, after restoration, housing is sold more expensive.

New buildings in Milan are more expensive than housing on the secondary market, in old or renovated buildings. Prices are constantly rising in the city center, because the difference between supply and demand is especially acute here. The cost per square meter in the historical center starts from 6,000 euros and can reach up to 15,000-17,000 euros. The apartment has an area of 120 sq. m. apartments in other areas of Milan will cost an average of 3,000 to 6,000 euros per sq. m.

Renting one–bedroom apartments in the city center costs 1,350 euros per month, on the outskirts - 700 euros per month, and you can rent three-bedroom apartments in the central area of Milan for 2,000 euros per month, in peripheral areas – for 1,200 euros per month.

Where to buy

The charm of the city lies in the diversity of its neighborhoods, which attract many foreign buyers of real estate. Milan can be divided into nine districts or zones: the central zone and eight adjacent territories.

When buying a property, it is necessary to take into account the liquidity of the purchased object. Of great importance is the location, the view from the window, architectural features, the possibility of renting, etc. For example, renovated villas and modern apartments in new residences with parks will always be in demand.

The highest real estate prices in Milan are in the historical center of the city (zone 1) and in the surrounding neighborhoods. The proximity to such famous architectural monuments as the La Scala Opera House or the Serbelloni Palace significantly increases the value of real estate, which usually exceeds 1 million euros per apartment.

In the central areas, the cost per square meter is on average 6,000 euros, which means that two-bedroom apartments with an area of 80-100 sq. m. The m will cost about 600,000 euros. Via Montenapoleone, where there are a large number of boutiques, is considered one of the most expensive in the city. The cost of housing here starts from 10,000-20,000 euros per sq. m.

The historic Brera quarter is also located in the center, which has a bohemian atmosphere. There are many pedestrian streets along which various cafes and art galleries are located, as well as the world-famous Brera Academy of Fine Arts.

Housing at more affordable prices can be found in the southern, northern and eastern districts of the city. For example, in the Chiaravalle area in the south of the city, the average cost per square meter is 3,300 euros. The most inexpensive area in Milan is considered to be Vialba-Gallaratese in the northwest of Milan, where a square meter costs from 2500 euros.

More modest housing, with prices below 2,500 euros, can only be found in the suburbs. Outside the city, for example, in Lodi, 32 km from Milan, one–bedroom apartments cost 85,000 euros, and three-bedroom apartments cost 120,000 euros.

HomesOverseas.ru thanks Aigul Akbarova from the company Hera International Real Estate, to Gelena Zakharova from the company DolceVitaRealEstate, Ivana Gobetti from the company SIS Real Estate, Olga Kibenko from the company Grand Milano Studio and Marina Yakovleva Rizzotto from Palazzo Estate S.R.L. for participating in the preparation of the article.

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