Milan, the comeback of luxury houses

In the past ten years, over 28 thousand new properties were registered in the real estate registry. Fewer working-class houses (A4) and more high-class ones (A1), thanks to Porta Nuova and CityLife.

In the past ten years, millions of houses were registered, with an estimated increase of over 581 million Sq m surface, almost the same area occupied by Rome.

To be honest, they’re not all newly constructed buildings, due to the “ghost houses” operation launched a couple of years ago by the former Land Registry Office that brought to the identification of 1.2 million rural houses that were requalified in order to give an income. Nevertheless, it’s still an amazing quantity of construction activity, and it’s even more surprising if we consider not only houses but also offices, shops, and parking lots. According to the last figures from the Land Registry Office updated up to 2016 and recently published, in Italy, there are 74.3 million properties, 64.5 million of which giving an income.

Speaking about residential properties, in the country there are nearly 35 million houses, one for 1.7 inhabitant, for a total surface of 4,077 square kilometres. These numbers are sufficient to understand that there is very limited space for new constructions, both for environmental reasons connected to the conservation of the territory and for economic reasons (little demand). Only the builders able to provide excellent solutions for the conversion of the already existing buildings will survive in the market.  On the other hand, the renovation works have brought in the past few years to building companies a turnover twice that deriving from the construction of new buildings (46 billion euro against 20 in 2017 according to National Builders’ Association).

Under the Dome

In Milan, over 28 thousand new houses have been registered in the last ten years, over 2 million 700 thousand Sq m surface. There aren’t any rural ghost houses here, a good share of this increase is due to the conversion into residential of laboratories, shops, and offices. A very interesting fact about offices is that their number has decreased over the ten years of more than 1,300 units, not because they have been demolished, they have been simply converted for other purposes.

Another reason is the new classification system of properties. The luxury houses have increased (class A1), but the increase is mostly due to Porta Nuova and CityLife.  Working-class houses (A4) and lowest range ones (A5) have decreased. Moreover, in the most exclusive areas of the old town, the systematic revision of the properties has just been completed, with the consequent change of category and class. Despite this, over 62% of the houses have been classified as middle range and falling in the A3 category. The total surface of the residential properties in Milan totals 70 Sq km in a territory of 180 Sq Km.

The record

The city that registered the highest number of new registration is Rome, with over 100 thousand new houses on a surface of over 8.7 million Sq metres. It’s followed by Milan and Naples.

Curious fact: houses in Italy measure on average 116.9 Sq metres, in Milan this number drops to 88.2 and in Rome to 102.6.

Source: L’Economia

Translator: Cristina Ambrosi

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