It is now a fact that the real estate market in Milan has its own history. Prices in the Lombard metropolis double the average price per square meter in the rest of Italy, but the news that has arrived in recent days is that this trend shows no sign of abating.
This is what emerges from analyzing Nomisma’s 2022 real estate market observatory, which ruthlessly photographs the situation of the Milan market, which shatters record after record thanks to strong demand in more attractive areas on average. This naturally drives up prices even in these areas, historically cheaper than the more exclusive districts of the center, with the result that prices go up more and more.
How much do houses cost in Milan?
According to a study by the Milan Chamber of Commerce, prices in the city register an average value of 6167 euros per square metre, against the Italian average of 2652 euros per square metre. The fact that makes us think, above all, is that the national figure is an absolute record, marking a +17% compared to 5 years ago.
As regards the details of the Lombard capital, we have the following situation: to buy a house in the center it takes an average of 10,672 euros per square metre, for the western area we are talking about 5,645 euros per square metre, for the east area 5,139 euro per square metre, for the northern area of 4944 euro per square metre, and for the southern area “only” 4437 euro per square metre.
Milan and real estate sales
But that’s not all: Milan is also at the top in Italy in terms of completed real estate transactions.
According to the Nomisma report, in fact, during the first half of 2022, as many as 15,600 real estate transactions were registered in Milan, with an increase of 17.5% compared to 2021 and 18.2% compared to 2019, the last year before the pandemic. The figure is much higher than the national average of 10.1%, and this means only one thing: that Milan is increasingly a desired destination for students and workers looking for a better life.
According to Nomisma, the future is still positive, despite the fact that central banks are much more reluctant to grant mortgages and loans at good rates. In fact, the research center states that the number of sales could decrease, but certainly not prices, as demand will remain high but the conditions for buying a home will be more limiting and restrictive.
This could push the rental market, precisely because those who are unable to buy will have to fall back on renting. The cascading effect is just beginning: Homes available for long-term rentals will drop, meaning prices soar. Among other things, there are fewer and fewer landlords willing to rent long-term: the common idea is that it is much better to rent for limited periods, to minimize risks and increase earnings.
The market of offices and shops
And what about commercial properties? According to the Nomisma report, in the first half of 2022 price levels returned to pre-pandemic levels. In particular, there were 652 office transactions, the best result for 10 years now, and 1,011 shop transactions, with a double-digit percentage increase over the first half of 2021 (+11.1%) and +8, 4% compared to 2019.
The average office price is rebounding, as after the pandemic there has been a passage into positive territory for the first time in the first half of 2022; now it is slightly down, but the half-yearly changes are positive (+1.2%) and higher than the average of the large Italian markets (-0.6%).
Among the most popular areas are the business districts and the semi-central area, while the average discounts are 9-10% in the most attractive areas and 11% in the suburbs.