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Milan. Property prices are rising from the city centre to the suburbs

14 July, Milano Finanza

Milan doesn’t know any crisis. The property market in the city doesn’t seem having slowed down its growth started a couple of years ago. The confirmation of this trend comes from the data disclosed by the Milan Chamber of Commerce. Between January and June, prices grew by 2% in comparison with the previous year, bringing to 4,895 the average cost per square meter. Quotations go from 9.800 euro/Sq m in the old town (+1% between 2017 and 2018) to 7,700 euro/Sq m around the walls (+2%), 5,200 euro/Sq m for the city ring, till 3,140 euro/Sq m in the suburbs (+1.7% from last year).

“Property prices for 21 areas of Milan have remained unchanged or have increased in the last five years”, warn the experts at the Chamber of Commerce. Moreover, the city centre is expanding toward the surrounding areas, and city ring around the old walls is expanding as well. The areas close to the Bocconi and Cattolica universities are also doing well, together with the Darsena, Gioia Pisani, and the old Fiera areas, this latter also supported by some real estate developments that are reshaping it.

Besides the economic analysis, the Chamber of Commerce also took into consideration the profits (or losses) of a potential owner of a one-bedroom apartment in Milan in a year. In this case, the owner of a 60 Sq m apartment in the Leonardo-Boccaccio-Pagano area saw its capital grow by 24 thousand euro in 12 months (equal to a 5.4% value increase). Good performance also for the Bligny-Toscana area, where the profits of the hypothetical landlord would have been equal to 12 thousand euro (+4.4%), rising to 18 thousand euro for the same one-bedroom apartment in San Vittore (4.4%). Pisani, Musocco, Niguarda, Indipendenza and Ortles-Cermenate follow.

The situation changes if we consider the relative value growth instead of the absolute one. In this case, the neighbourhood of Cervetto leads the chart, with a +7.3% hike on a yearly basis. It’s followed by Agrippa-Abbiategrasso (+7%) and Cermenate-Ortles (6%). “All this activity caused the selling times to reduce, while the discount margin has also reduced”, stresses Beatrice Zanolini, councillor at the Milan Chamber of Commerce, who believes that the dynamic market is also driven by the demand for better quality properties. Balconies are terraces are very popular, as well as the proximity to commons spaces, services and public transport. Access to public transport plays a crucial role in the choice, and it can revitalise a decentred area, incentivising the opening of small shops, schools and kindergartens, parks, sports and leisure facilities. At the same time, prime central locations such as Via della Spiga, Montenapoleone, Vittorio Emanuele and San Babila, as well as Brera and Missori, are still very attractive. Moreover, “We’re seeing a considerable amount of private investments in the upscale property market. Thanks to the flat tax for those who decide to return to Italy, many choose Milan and properties valued from 2-3 million upwards”, concludes Vincenzo Albanese, Fimaa president for Milan, Monza and Brianza.

Source: Milano Finanza

Translator: Cristina Ambrosi