04 January, Il Sole 24 Ore
Recovery is the keyword that has characterised real estate in the past few years, luxury properties included. The Nomisma-Santandrea survey on luxury houses confirms this view. The segment initially stood recession rather well but it saw its numbers dropping nevertheless.
Over the first part of 2017, the luxury property market in Milan saw the transactions rising especially within the old town, Brera and Magenta. Whereas in Rome, the demand was more dynamic even though transactions didn’t change significantly from 2016.
No news from what concerns prices. The most expensive area is still Quadrilatero (between 11,000 and 13,000 euro per Sq m for new and renovated properties, between 9,000 and 11,000 euro per Sq m for old or to be renovated properties), also for rents (between 290 and 400 euro per Sq m for new and renovated properties, between 200 and 290 euro per Sq m for old and to be renovated properties). It’s followed by Palestro-Duse, Brera and the old town, then Magenta, Pagano and Castello (between 7,000 and 8,500 euro per Sq m for new and renovated properties, between 5,500 and 6,500 euro per Sq m for old and to be renovated properties). In the first part of 2017, the city of Milan registered a price reduction of 0.5% (more accentuated in Magenta-Pagano-Castello -1.5%) due to the tendency of property owners to review prices in order to close the deal. The discount is set between 10% and 12%.
Regarding new properties related to the 2017-2018-2019 development projects, “There will be a greater offer along with a discount on paper, determining a bigger discount on the requested price”, says the report.
Always concerning luxury, prices in Rome tend to vary more than those in Milan. The old town is the most expensive (10,550 euro per Sq m on average for new properties and 8,500 euro per Sq m for old properties). In the remaining areas, the average prices for new houses are comprised between 6,700 euro per Sq m in Prati and 5,150 euro per Sq m in Flaminio, while the prices of old properties are set between 4,500 euro per Sq m in Parioli and Pinciano-Veneto and 4,900 euro per Sq m in Prati.
Prices are substantially unchanged in Rome. The average gap between requested price and the actual price is below 15%, as already observed in 2016. The average selling times go from a minimum of 6 months to a maximum of 8 months.
In Rome, the old town is the most active marketplace for what concerns sales. The average dimensions are set between 120 Sq m and 180 Sq m, for two or three bedrooms. The demand is concentrated in properties to be renovated in order to save some money. The most sought-after apartments are those with a garage, a terrace and that are located on the high floors.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi