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Prices and areas of luxury properties in Milan and Rome

30 October, Il Sole 24 Ore

Revival and recovery are the two words that have characterized real estate over the past few years, also in the luxury sector. The Nomisma-Santandrea Report on luxury properties reminds us of this. Luxury is a segment that initially stood up to the crisis but then suffered from the disaffection towards real estate.

During the first trimester of 2017, luxury properties have seen an increase of transactions, especially concerning the old town areas, such as Brera and Magenta. In Rome, on the other hand, the demand proved to be more dynamic, but transactions have been stable compared to 2016.

Nothing new concerning prices. The areas with the highest prices are still Quadrilatero (between 11,000 and 13,000 €/Sq m for new or refurbished properties, and between 9,000 and 11,000 €/Sq for old or to be refurbished houses), also for what concerns rents (between 290 and 400 €/Sq m/year for the new or the refurbished ones, and between 200 and 290€/Sq m per year for old or to be refurbished properties). Palestro-Duse, Brera and the old town are going down, and lower prices have been recorded in the Magenta, Pagano and Castello areas (between 7,000 and 8,500 €/Sq m for new properties and 5,500 and 6,500 €/Sq m for the old or to be refurbished ones). During the first quarter of 2017, the city of Milan registered a price reduction of -0.5% (more accentuated in Magenta-Pagano-Castello with -1.5%), mainly due to owners’ increased availability to review their prices in order to close quickly the deals. Discounts are currently set between 10 and 12%.

Regarding new properties, due to new developments to be completed in 2017-2018-2019, “a bigger offer availability and a purchase discount on the contract might determine a lower required price”, states the report.

Always concerning upscale areas, Rome has a higher price fluctuation compared to Milan. The old town is still the area with the highest prices (on average 10,550 €/Sq m for new properties and 8,500 €/Sq m for the old ones). In the other parts, houses average prices fluctuate between 6,700 €/Sq in the Prati area and 5,150 €/Sq in Flaminio, while prices for old properties are between 4,500 €/Sq in Prioli or Pinciano-Veneto and 4,900 €/Sq in Prati.

In these areas, prices are substantially unchanged. The gap between required and actual price stays below 15% as already observed during 2016. The average selling times, minimum and maximum values, are decreasing, ranging from just below 6 months to approximately 8 months.

In the Rome property market, the old town is still the most dynamic concerning transactions. The preferred average size has increased and fluctuates from 120 Sq m and 180 Sq m, for two-and three-room apartments. For who wants to buy, the demand is focused on apartments needing renovation works, keeping in this way the costs lower. There is a consistent trend of looking for apartments with garage, terraces and on high floors.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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