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Milan, prices for new houses are rising

19 October, Il Sole 24 Ore

Milan is the most active market in Italy. According to the Revenue Agency, Milan has registered a growing number of transactions in the third quarter of 2013. The latest report by Sigest analyses the sales trend and the new real estate projects in the city, new living trends included.

The fifth edition of the Sigest survey on Milan’s residential market aims at providing a synthetic and complete picture of the projects concerning the city.

The report studied the new construction and the requalification projects put on the market between June 2017 and June 2018 in Milan within the urban border represented by the outer ring road (bus lines 90 and 91). This area is like a laboratory to experiment and anticipate new trends and needs.

Sigest Ceo Enzo Albanese commented: The results of the research show trends that we’ve detected and analysed in the past few months. Milan’s market grows at a different pace than the rest of the country, thanks to the urban transformation projects that considerably improved the city, making it more attractive than the other big cities”.

The new trends show the market’s preference for new-generation products and the areas targeted by the high-end demand. Where is the demand focused on? According to the report, clients focus on the old town as well as trendy neighbourhoods. Buyers look for readily-available properties in well-connected and well-served areas.

In 2018 there have been 145 projects, corresponding to approximately 5,500 houses, 81% of which have been already sold, leaving a remainder of 19%. Over 2018, 26 new projects have been launched (976 apartments), while 38 projects have terminated the sale phase. 73% of the new initiatives concerns developments with less than 50 units.

1,233 houses have been sold in 2018, registering a 32% increase from 2017. Of these, 53% is represented by properties put on the market in 2017, while 47% is represented by properties placed on the market in the last 12 months.

What’s the price trend? They’re set on average at di 10,100 euro/Sq m in the city centre, 8,600 euro/Sq m around the city walls and 6.550 euro/Sq m in the ring road area. These prices correspond to the asking prices for 107 developments available on the market in June 2018.

From the comparison of the 2018 figures with the 2017 ones, it emerges a steady trend of the city centre, a 10% increase for the city walls area, and a 5% increase for the ring road area.

Albanese warns that the risk is that the offer for new houses might not be able to meet the demand in 5-10 years. That’s because new houses are selling quickly, thanks to an increase in transactions equal to 4-5%. “The challenge is to expand the borders, going beyond the limit represented by the 90-91 bus lines, daring to create beautiful, innovative and efficient new houses at affordable prices”, says Albanese.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi