(Visited 71 times, 1 visits today)
(Visited 71 times, 1 visits today)

Luxury, Italy is back in fashion

21 October, Milano Finanza

In Monte Napoleone rents reach 10 thousand euro per Sq m

It’s since the beginning of the year that Italian property market has aligned with the trend of its international competitors. Italy, therefore, is back on the real estate market with Via Monte Napoleone In Milan, and Via Condotti in Rome, respectively sixth and ninth in the chart for the first ten high streets worldwide in terms of rent costs. On top of the chart, there is Fifth Avenue in New York (31 thousand euro per Sq m yearly), Hong Kong (28 thousand euro), and Champs-Elysées in Paris. This is the situation pictured by World Capital regarding the fashion & High Street Report wrote in collaboration with the Italian Fashion Federation, Global Blue, and the Observatory Acquisti CartaSì. The trend of the property market is growing in cities such as Milan, Verona, Florence, and Bari. Via Monte Napoleone in Milan registers the record with 10,300 euro per Sq m yearly for a 34% growth. Always in Milan, in Corso Buenos Aires, rents have risen by 14% thanks to a greater interest from brands and to the investments by some international operators. An example is the British fund Meyer Bergman that, after having obtained in January 2016 the Corti di Baires complex for over 100 million euro, bought Upim department stores at numbers 33-37. Rents are rising also in Via Manzoni and in Via Torino, both reporting +11%, same results registered also in Turin in Via Garibaldi, while prices in Florence, in Via della Vigna Nuova, have seen increases of 9%, and of 15% in Genoa, in Via XX Settembre. According to the World Capital report, the high-end range of rents in Via Monte Napoleone has gone from 8,700 euro per Sq m in the first semester of 2016 to the current 10,300 euro per Sq m (+18%), while the average price has risen from 6,700 to 7,150 euro per Sq m yearly. In the popular luxury street of Milan, the turnover of shops has been of 14%, with 12 shops on 84 changing tenants. All these spaces were vacant two years ago, and now they’ve been occupied by fashion stores as Dolce & Gabbana and by Brunello Cucinelli. “We’re assisting in Milan at a positive growth in Via della Spiga that, with the maximum rent of 8,000 euro per Sq m per year, registers a +16% compared to the years 2015-2016”, explains Neda Aghabegloo, responsible for the research department of World Capital. “The lack of free spaces in the street has brought the attention to the streets nearby such as Corso Matteotti and Via Sant’Andrea”. Among the most attractive Italian high streets, Venice registers the only negative performance: San Marco Square reports maximum rents falling by 1.1% and average rents decreasing by 0.7%. In Rome, prices are stable in Via Condotti: 5,900 euro per Sq m per year on average and 8 thousand as the high-end. “Focusing on Rome, we’ve noted a consistent increase of rents that assures the existing investments and encourages new ones”, clarifies Aghabegloo. A positive scenario, hence, confirmed by the opening of the stores of famous jewellery brands, like Tiffany and Harry Winston, together with the already existing Bulgari, Cartier, and Damiani in Via Condotti. Luxury, therefore, is the engine of prime retail, to the point that in the streets of the city centre there is a big competition to get the best location. This a way to get the money of international tourists, whose presence has increased by 6% according to the Observatory Acquisti CartaSi on behalf of the Italian Fashion Federation. In this first semester, the regions with the best sales performances have been Trentino Alto Adige (+6.4%), while Abruzzo, Molise, Campania, Basilicata, and Calabria report a slight decrease.

Source: Milano Finanza

Translator: Cristina Ambrosi