At full speed, in counter trend with the rest of Italy. The real estate office market in the city centre of Milan reports a yearly variation of the transactions of 35.3%, against an average fall of 3.4% in the rest of the metropolitan territory. The average prices for the offices at the end of the last year were 4,357 euro per Sq m, slightly increasing (+0.2%) compared to the previous year, as shown by the joined survey of Assolombarda, the Chambers of Commerce of Milan and Monza-Brianza, Nomisma, and Fimaa Milan and Monza-Brianza.
According to the Scenari Immobiliari dossier, in 2016 the increase of surface sold exceeded by 14.5% the last year values, reaching 320 thousand Sq m (280 thousand Sq m in 2015).
In the last two years, Milan has registered foreign investments for over 4 billion euro, the half of which was invested in the whole country. The forecasts, based on the information gathered from the operators, suggest higher figures in the next two years.
The purchases in the last three years are represented for 60% by offices, followed by retail and by transformation areas. It’s mostly the funds to lead the trend, aiming at requalification and urban regeneration projects: according to Scenari immobiliari, they have in their portfolios (in the entire country) about 24.5 billion, 8 of which invested in offices, 8.7 in retail, and 3.5 in hotels and hospitality.
One of the most recent examples of this activity of the funds in Milan, is the requalification of Cordusio Square, prerogative of the Chinese Fosun and of the American Hines and Blackstone, this latter being the absolute protagonist in Milan. However, there are other remarkable funds made in Usa, such as Cerberus, Barings, and Texas Pacific Group. Whereas the sovereign fund of Qatar broke the hesitation in 2006 with the operation connected with the Gallia hotel and then broadening its presence by recently buying from Hines the 100% of Porta Nuova. Always with regard of hospitality, the Principe di Savoia is property of the sultan of Brunei, while, always in Italy, British, French, and German funds are active, even though these latter are receding compared to the past. Even without considering the renaissance of the past few years, the reference market is wide: the territory of Milan offers a range of offices estimated for 14 million for Sq m, of which over 10 in Milan city and 3.7 in the rest of the territory.
This positive trend concerning offices involves industrial properties as well: according to the joined observatory of Assolombarda, the sales are decreasing in the capital of the region, but they are increasing in the rest of the territory, with a yearly variation of 1.6%. In the last five years, the trend of the companies in the metropolitan area has been steady: the registrations of new businesses (around 24 thousand new enterprises per year) have exceeded the terminations, with a positive balance equal to an average of approximately 6,770 new registrations per year.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi