19 April, Il Sole 24 Ore
Milan has endured the recession better than the other Italian cities and got strong in the service sector. This is the past and the future of the city in a nutshell. Milan has a found “a new identity which calls for new paradigms”, says Francesca Zirnestein from Scenari Immobiliari.
In the next years, over 40 big redevelopment projects will be implemented on a surface of 12.5 million Sq m, for a total investment of 21 billion euro.
Milan is the only Italian metropolis that has really channelled the economic recovery as well as the urban trends of the other main European countries. “Between 2010 and 2017, the domestic real estate investments have been equal to 38.8 billion. Of these, 16 billion (about 41%) have concerned Milan”, according to Scenari Immobiliari. In 2018, the national and international real estate investments will grow further, with other seven billion invested in Milan and the surrounding areas. The data are taken from the report “Milan over the rainbow” by Scenari Immobiliari with the collaboration of Vittoria Assicurazioni.
“The urban renaissance of Milan (in a country still stuck in the Middle Age) is strictly connected with the economic and cultural changes of the city”, said Mario Breglia, president of Scenari Immobiliari. From manufacturing to technologic innovation and culture, the city has dramatically changed over the span of 30 years, achieving a solid urban regeneration that brought Milan at the level of the other big European cities. All this without changing its essence”.
The urban and construction interventions in process or in the pipeline are mainly concentrated in the residential (2.9 million Sq m), service (1.2 million Sq m), and commercial sectors (800 thousand Sq m). The projects concerning public services (hospitals and clinics, libraries, facilities for primary education and childhood, associations headquarters) will occupy a surface of about 700 thousand Sq m and the spaces open to the public will occupy a surface of 4.3 million Sq m.
“One the reason for this success of the city is its spirit of collaboration – says Pierfrancesco Maran, City Councillor for Urban Planning -. All the recent administrations have worked following a common line. Investing in Milan makes sense because there is a continuity in the process even when the people involved change”.
For what concerns the residential sector, Milan is the only city that has reported for two years in a row an increase in transactions (in some case with two-digit results). In 2017 the city registered over 56 thousand transactions in the metropolitan area which has surpassed the metropolitan area of Rome, stuck at 45 thousand transactions.
In the Municipality of Milan, the residential units traded throughout 2017 were 33,200, with a 12.2% growth compared with 2016, continuing the positive trend started in 2015 after seven years straight of negative performances. Turnover too is back reporting good results (+9.9%), supported by the rise of prices everywhere in the city, totalling 9.7 billion euro and surpassing the pre-crisis figures. “The price trend is steady again also in the suburbs. However, rents and the average selling prices are still below the 2008 values. Same story for the semi-centre, that has seen its prices and rents growing starting from 2016, while in the central area prices have fully caught up with the 2008 values, the best year for the sector in the last decade”.
Milan in continuously evolving. “The part that is changing the most is the part around Via Missaglia”, concludes Zirnestein.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi