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Brera is the “capital” of luxury penthouses

08 March, Corriere della Sera

Milan is the target of Italian and international millionaires wanting to buy a luxury house. The segment of luxury properties, with values over one million and a half, is a niche but it drives the sector nonetheless. “With roughly 23 thousand transactions per year, the Milan luxury market is the most dynamic and the fastest market in Italy. 5% of the operations concern mostly upscale apartments and such a percentage is growing, especially because prices are convenient compared to other places in Europe”, says Fabio Guglielmi, Ceo for Sant’Andrea (Gabetti Group) that together with Nomisma has recently published a survey on the segment. For luxury properties, selling times are reducing, as well as the gap between requested price and amount paid. “This is the sign that clients are willing to pay more, so much they yearn for a house in Milan”. There are currently 38 construction sites for upscale properties in Milan, not only in the city centre. “Seven have just started and 23 are almost finished. In the next two years, more than 300 new luxury properties will be put on the market”, adds Luca Dondi, Nomisma Ceo. “What matters is services and image. Penthouses and super penthouses with a terrace and at least three bathrooms are not enough. People want a concierge 24 h, for example. And spaces have gotten bigger: from the 185 Sq m of the first part of 2017 we’ve gone to 215”. Brera is the area most sought-after, followed by the old town and the part around Castello. For instance, new contracts have been signed in the new Horti complex, behind Porta Romana, in Residenza Litta close to Cairoli, and in the Carducci suites where an “urban villa” has been recently sold. There are fewer requests for Quadrilatero, even though prices here are steep (12 thousand euro/Sq m), despite the average 12% discounts. Costs are key: so far, they have maintained stable (with a 0.4% increase due to emerging areas such as Castello and Porta Nuova). According to Enzo Albanese, Ceo for the real estate brokers association Fimaa, a price hike is just around the corner. “The demand comes also from abroad and the offer, despite the many construction sites, risks to not satisfy all the requests. By mid-2019, prices for upscale apartments might increase up to 10%”. There is a widespread optimism, even though a certain caution still remains. According to the analysis by the portal Luxuryestate.it, Milan is at the seventh place in the world for luxury apartments, after Miami, New York, Los Angeles, Lisbon and Barcelona. Foreigners are a small portion of the buyers, and they also buy properties for rental. Investors from the Middle East are concentrated in the area around Duomo and in Porta Nuova, while British are found around Parco Sempione. Guglielmi concludes: “Prices haven’t grown. And if we look at the international market, they’re still convenient”.

Source: Corriere della Sera

Translator: Cristina Ambrosi

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