04 June, Corriere della Sera
Last year Italians spent on average nearly 90 billion euro to buy a house, 7.5 of these have been spent in Milan only. Hence, the city representing almost 2.2% of the total national population has reported 8.3% of the national turnover.
There are two factors for such result. Firstly, the price per square metre is 2.5 times higher than the national average (3,763 euro against 1,560) and the investment per property is at least the double: 315,700 euro against 165,100 in the rest of the country. This average, however, drops to 158 thousand euro if we don’t count Milan.
The second reason is the dynamic market, with 24 houses sold every one thousand, while the national average is 16. In comparison with the capital, the market in Milan is in much better shape, as shown in the charts reporting the most relevant figures from the 2018 residential report by the Land Registry Office and Abi. The yearly survey provides a detailed picture of the market, starting from the numbers of transactions, which we sum up here: sales in Italy have been 542,480 with a yearly increase of 4.9%, while in Milan the growth has been equal to 8.1%, with 23,707 deeds of sale.
One of the most interesting aspects is the predominance in Milan of transactions for small-sized houses: 83.9 Sq m against 105.8 of the national average.
Loans and rentals
The report also includes two chapters dedicated to mortgages and rents. Regarding the former, these registered a hike in the applications in Milan. The average amount issued for each house bought has been 190 thousand euro, with a yearly increase of 20 thousand euro, which cannot be explained by the trend of prices since these are unchanged. It’s clear that the rates at their lowest attracted many buyers who applied for a loan even if not needed. At a national level, the amount issued is 126,300 euro, with a 1,600 increase. On average, the loaned amount represents 71% of the price.
Concerning rentals, the survey analyses all the four types of lease contracts regulated by law. The chart shows only the two long-term ones, generally referring to main dwellings. The unregulated contract (with an eight-year duration) and the regulated one (five years). The contracts have been 673 thousand in total with a 1.1% yearly increase. In Milan, where 34 thousand contracts have been registered, the growth has been equal to 2%. It’s easy to understand from the figures of the survey that the regulated contract doesn’t quite work in Milan: only 1,795 contracts of this type have been signed against the 23 thousand of Rome. The reason is obvious: the rents agreed by the associations and the landlords are not attractive. The average rent for regulated contracts in Milan is less than the half of the one for unregulated agreements: 69 euro/Sq m a year against 147 euro/Sq m.
Source: Corriere della Sera
Translator: Cristina Ambrosi