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Property prices in Milan have grown by 1.3% in one year
24 January, Il Sole 24 Ore
One square metre of a residential property in Milan is worth 5,078 euro on average, 0.7% more compared to the price in June and 1.3% more from one year ago. These numbers are the proof of the advantaged position of Milan in comparison with the rest of the country, which is still at a standstill, according to the data published by the Milan Chamber of Commerce.
“In 49 areas, prices have increased from last year, 12 have not changed and in 9 have reduced. Prices have generally grown in the areas close to the stations such as Centrale, Cadorna and Lambrate, close to universities like Cattolica e Bovisa, Fiera, and the shopping and nightlife districts around the Buenos Aires, Porta Romana, Brera, as well as the central Cairoli and Cordusio. However, in the Metropolitan City of Milan, Quarto Oggiaro decreased in the second part of 2018 by 10% compared to the last five years and by 7% over the previous six months.
The eastern and western parts of the city reported the sharpest appreciation, registering a 2% increase in one year, followed by the central and the southern parts with +1%, while the northern area has remained stable. Prices start from 9,925 euro/Sq m in the old town (+1.3%) to 5,077 in the western part (+1.8%), 4,500 euro in the eastern part (+2%), 4,101 in the northern sector (+0.3%) and 3,850 in the southern part (+1.2%).
Cairoli, Cordusio, Brera, Buenos Aires along with Centrale, Cadorna, Lambrate, the area around Cattolica and Bovisa universities, Porta Romana e Fiera have all performed well. In the centre, the main drivers are Cairoli, Cordusio and Brera with its artist and nightlife quarters. In the east, the areas leading the trend with respectively +5% and +4% are Lambrate with its park and station, the parts of Libia and Cirene near Porta Romana. In the west, the fastest-growing neighbourhoods are Leopardi, Boccaccio and Pagano along with the area near Piazza Cadorna (+3%), Fiera and Sempione, City Life e Inganni. In the south, Famagosta and Barona reported a 3% growth together with Sant’Ambrogio and Ortles-Cermenate. In the north, Bovisa-Politecnico leads the growth with 5%, along with the shopping district of Buenos Aires and the area around the central station with +4%.
The top areas are Spiga, Montenapoleone, Vittorio Emanuele, San Babila, Diaz-Duomo and Scala with prices around 12 thousand euro/Sq m. They’re followed by Parco-Castello with 11 thousand Sq m/euro thanks to the newly-constructed energy class A and B apartments; Brera, Cordusio and Cairoli with 10 thousand euro/Sq m; Corso Venezia, Repubblica, the area around Cattolica university with 9 thousand euro/Sq m. Average prices are set at 8 thousand euro/Sq m in Missori, Largo Augusto, some parts of Cadorna such as Via Leopardi, Corso Garibaldi, Via Solferino, and little less in Basiliche and Piazza Vetra.
The most convenient areas are Salomone, Trenno, Ronchetto, Quarto Oggiaro, Musocco with 2,600 euro/Sq m. They’re followed by Axum, Inganni, Gratosoglio, via Padova, Corvetto, Lambrate and Bruzzano, all with prices below 3 thousand euro/Sq m.
“Some areas have benefitted from new investments in construction and infrastructures – commented Marco Dettori from the Milan Monza Brianza Lodi Chamber of Commerce and Assimpredil Ance president. “In some cases, the international markets look at Milan as an opportunity to grow their business. For this reason, we keep on with the relaunch of the city, like the nomination for the winter Olympics”.
Beatrice Zanolini from the Milan Monza Brianza Lodi Chamber of Commerce commented: “Only a few areas in the city are reporting a reduction. Milan can meet the requirements of a varied and often sectorial market if we think about student residences, senior living, professionals moving for work. The city offers interesting housing solutions and a good life quality”.
Milano Monza & Brianza Fimaa president Vincenzo Albanese adds: “Milan reported 25 thousand transactions at the end of 2018 as it used to do before the recession. We hope it will also continue this year and will generate a positive effect also at a national level”.
Besides the usual participation of Fimaa (Confcommercio Milano), this edition has also seen among the participants Assimpredil Milano (Confindustria), Fiaip, Anama (Confesercenti) and Isivi (Valutatori Immobiliari). Andrea Marietti, vice president of the board for property prices of the Chamber of Commerce, said: “The exchange between the various players involved in the value chain of real estate gives a clear picture of the market, becoming an important source of information for the Public Administration, companies and privates”.
Activities are thriving also in the office and shop segments, driven by the strong demand from the food sector, although with significant differences among the various parts of the city. Therefore, it’s possible to lease a shop on the outskirts for 40/80 euro/Sq m/year while leases in the city centre are around 650/1,600 euro/Sq m/year.
The rental market has also grown. Prices for studios and one-bedroom apartments in the city centre have increased by 10%, having gone from 800 to 1,100 euro a month the former and from 900 to 1,400 euro a month the latter. Prices around the city walls and the circular road have respectively increased by 10% and 13%.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi