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Construction boom in Milan
08 October, Milano Finanza
Milan confirms being the most dynamic real estate market, having considerably grown in the last 12 months. This picture emerges from the research titled “Residential market in Milan: real estate and new trends. Analysis of the new projects and preview of the new trends” by Sigest. The company has been active in the residential property market for thirty years with a focus on high-end properties in Milan and Lombardy. The research is at its fifth edition, and it monitors the new real estate projects in the city with the aim of anticipating the new living trends. The survey especially analyses the new development projects carried out between June 2017 and June 2018 within the urban limits of the outer ring of Milan (bus lines 90 and 91), as the area anticipates the trends which are going to spread all over the city.
“Milan is more active than the rest of the country, thanks to a series of urban interventions that improved the city, making it more attractive in comparison with the other cities”, explains Enzo Albanese, Sigest Ceo. “New generation buildings are particularly appreciated. People nowadays focus on the old town as well as in the trendiest ones. Not only: buyers are looking for readily-available properties in well-connected and well-served areas”.
However, if we consider the speed with which the units placed on the market are sold and the 4-5% growth rate of the transactions, the city risks to not be able to meet the demand in 5-10 years”, warns Albanese. “To allow the city to grow further, we need to the go beyond the border represented by the lines 90 and 91 and start new real estate developments which have to be innovative, efficient and cost-effective”.
The reports count 145 projects in 2018 for a total of 5,500 houses, 80% of which have been already sold. Of these projects, 26 have been built in the last year, they’re composed of less than 50 apartments and are located in the most peripheral area analysed in 70% of the cases. 1,233 houses have been sold in 2018, registering a 32% increase from 2017. Of these houses, 53% were placed on the market in 2017, while 47% in the last 12 months. The requested prices are set on average at 10,100 euro/Sq m in the Centro area, 8,600 euro/Sq m in Bastioni, and 6,550 euro/Sq m in Circonvallazione. If comparing the 2018 figures with the 2017 ones, Centro shows a stable price trend, while Bastioni (+10%) and Circonvallazione (+5%) have both increased.
73% of the 145 new projects concentrate in Circonvallazione, followed by Centro (15%) and Bastioni (12%).
The properties sold in the last 12 months are located 78% in Circonvallazione, 13% in Bastioni and 9% in Centro.
The transaction increase in the three areas has been 85% in Bastioni, 32% in Centro and 26% in Circonvallazione.
In June 2018, 38 of the 145 analysed projects sold out, leaving 107 remaining projects, for a total 1,039 properties (38% are houses put on the market in the last 12 months). 85% of the residue is located in Circonvallazione.
The areas that reported the highest growth are in Circonvallazione and Bastioni. Compared with 2017, sales are more homogeneous, as none of the 18 micro-areas represents a percentage higher than 15%.
Source: Milano Finanza
Translator: Cristina Ambrosi