The legendary singer’s passing at 91 draws attention to Milan’s Brera district—where property values have surged alongside the city’s transformation into Italy’s most expensive real estate market

Ornella Vanoni, the iconic Italian singer whose career spanned seven decades, died from cardiac arrest at her Milan home on November 21, 2025, at the age of 91. While the world mourns a cultural treasure, her deep connection to Milan—and specifically to her Brera apartment—offers a window into one of Europe’s most dynamic luxury real estate markets.
Vanoni, who started her artistic career in Milan’s theater scene in 1960 and was nicknamed the “Underworld Singer” for her Milanese dialect songs, chose to spend her final decades in Brera, the artistic heart of Milan. This choice reflects both personal sentiment and shrewd real estate wisdom: Brera has become one of Italy’s most prestigious residential addresses.

Milan’s Real Estate Market: Italy’s Premium Leader

Milan’s residential property prices reached €5,512 per square meter citywide in June 2025, up 2% from the previous year and surging 15-28% over the past five years, making it Italy’s most expensive and dynamic real estate market. The city’s performance significantly outpaces every other Italian market.
Premium locations such as Brera, Porta Nuova, and the Quadrilatero della Moda command substantially higher prices, often exceeding €10,000 per square meter for luxury properties. More specifically, properties in Milan’s Centro Storico, Magenta, and Brera range from €10,150 to €12,000 per square meter for new or renovated homes, while the luxury segment regularly exceeds €15,000 per square meter in exclusive properties.
In October 2025, the average price for residential properties in Milan was €5,572 per square meter, with an increase of 2.65% compared to October 2024. The Centro area commanded the highest prices at €11,185 per square meter, positioning Brera among the city’s most prestigious neighborhoods.

The Brera Premium: Where Art Meets Investment

Brera’s appeal extends beyond its cobblestone streets and art galleries. International buyers now account for over 12% of residential sales across Italy, with Milan attracting the highest concentration of foreign investment. The neighborhood’s combination of historic character and central location positions it at the intersection of cultural prestige and financial performance.
Properties in Milan now typically sell in about 60 days, reflecting strong demand despite elevated prices. However, rising prices have caused a drop in sales volume by 8.8% in 2024 compared to 2023, as the market becomes increasingly accessible only to high-net-worth buyers—both domestic and international.
The foreign buyer phenomenon is particularly pronounced in Milan’s luxury segment. According to Gruppo Tecnocasa’s research office, 28.2% of all transactions in Milan during 2024 were classified as investment properties—homes purchased specifically to generate rental income.

Florence: The Renaissance Rival

While Milan dominates Italian real estate headlines, Florence presents an intriguing comparison. In October 2025, Florence’s average residential property price was €4,681 per square meter, with an increase of 8.46% compared to October 2024. This positions Florence as Italy’s second most expensive city for real estate purchases, between Rome (€3,124/m²) and Milan (€4,986/m²).
Florence’s year-over-year growth actually outpaced Milan’s in percentage terms. In Florence, house prices rose strongly by 8.3% year-over-year to an average of €4,514 per square meter in October 2025, compared to Milan’s more modest 2.65% increase. However, Milan’s absolute prices remain significantly higher.
The Florence market shows considerable neighborhood variation. The most expensive area is Michelangelo, Porta Romana, with €6,513 per square meter, while properties in Oltrarno command €24.95 per month per square meter for rentals.

Tale of Two Markets: Milan vs. Florence

The Milan-Florence comparison reveals fundamentally different market dynamics:

Absolute Price Leadership: Milan’s premium districts command €10,000-€15,000+ per square meter, while Florence’s top areas reach €6,000-€6,500 per square meter—representing a 40-60% price premium for comparable Milan properties.
Growth Trajectories: Florence property values have increased by approximately 16% over the past five years since 2019, while Milan has surged 15-28% over the same period, with Milan’s higher baseline translating to larger absolute gains.
International Appeal: Milan accounts for roughly 19% of foreign luxury property searches, while Florence follows with about 7.6%, reflecting Milan’s stronger pull for international buyers seeking primary residences rather than vacation homes.
Rental Yields: Florence offers average rental yields of 7.35%, providing stronger income potential than Milan, where yields are more compressed due to higher purchase prices.

The Luxury Segment: Where Italy Shines Globally

Italy’s luxury real estate market has captured significant international attention. Over the past four years, international demand for luxury homes valued above one million euros has grown by 44%, with the U.S. as the top country for demand (27.8%), followed by Germany (8.83%) and the UK (5.54%).
The Italy luxury residential real estate market stands at USD 27.37 billion in 2025 and is projected to reach USD 36.81 billion by 2030, advancing at a 6.11% CAGR. This growth is driven by limited supply in UNESCO-protected historic centers, favorable tax regimes for foreign residents, and steady inflows of ultra-high-net-worth individuals.
International buyers in Italy predominantly seek stand-alone luxury homes, with villas making up over half of foreign luxury property searches (about 53.2%), far outpacing apartments (around 20%). However, in Milan specifically, apartments in historic buildings remain the preferred format due to urban constraints.

Market Fundamentals: What’s Driving Growth

Several factors underpin Milan’s real estate momentum:

Economic Centrality: Milan functions as Italy’s financial and fashion capital, providing employment opportunities and corporate headquarters that create sustained housing demand—a fundamental difference from tourism-dependent Florence.
Infrastructure Investment: Milan’s ongoing evolution is driven by gentrification, infrastructure, and redevelopment, with formerly peripheral zones experiencing appreciation of 40%+ over the last five years.
Supply Constraints: Limited new-build supply in UNESCO-protected cores keeps demand well ahead of completions. Historic preservation regulations restrict development, maintaining scarcity premiums.
International Migration: Italy’s flat tax regime—a €200,000 annual tax on foreign income for those relocating their fiscal residence—has significantly boosted the country’s appeal to foreign buyers.

Investment Perspectives: Rental vs. Appreciation

For investors weighing Milan versus Florence, the calculus depends on strategy:

Florence’s rental yield of 7.35% exceeds Milan’s compressed yields, making it more attractive for income-focused investors. The city’s tourism economy and university population provide consistent rental demand.
Milan, conversely, offers greater capital appreciation potential and liquidity. Milan’s housing prices are expected to increase by roughly 3-4% in 2025 on average, and the city’s international profile ensures robust transaction volumes even at elevated price points.
The rental yield in Milan has seen a slight increase, currently averaging around 4.2% in 2025, which, while lower than Florence, still provides reasonable income alongside appreciation prospects.

Renovation Economics: The Historic Premium

Properties in historic buildings—like Vanoni’s Brera apartment—require careful renovation planning. In 2025, renovating a property in Milan costs about €1,000 per square meter, with complete renovations typically costing between €700 and €1,000 per square meter.
These costs, while substantial, are justified by market premiums. New construction properties fetch significantly higher prices at €7,250 per square meter on average, reflecting buyer preference for energy-efficient modern homes. Renovated historic properties that achieve modern efficiency standards while preserving character command the highest premiums.

Market Outlook: Sustained Growth with Moderation

Looking forward, both markets show positive trajectories with tempered expectations. Italy’s broader economy remains somewhat sluggish, with declines in fixed investment and international trade, yet real estate has demonstrated resilience.
Milan’s property boom shows no signs of slowing, with forecasts suggesting moderate price rises and sustained interest in the coming years, driven by urban redevelopment projects, infrastructure upgrades like new metro lines, and a thriving economy fueled by tourism.
Florence property prices are expected to continue gradual upward trends in 2025 and beyond, with forecasts suggesting 3-7% annual growth as the market matures, representing a more sustainable pace than the recent surge.

Risk Factors and Considerations

Prospective buyers should weigh several challenges:

Affordability Constraints: Rising prices are squeezing out many potential buyers, especially those with lower incomes, potentially limiting future buyer pools.
Economic Sensitivity: Existing house prices increased by a moderate 4.43% (2.66% inflation-adjusted) in Q2 2025 from a year earlier, showing deceleration from previous peaks.
Transaction Costs: Italy imposes significant acquisition costs including notary fees, registration taxes, and agency commissions, which can total 7-10% of purchase price for buyers.
Short-Term Rental Regulations: Milan has tightened regulations on short-term rentals, impacting investment strategies but stabilizing long-term rental markets.

The Vanoni Legacy: When Culture Meets Real Estate

Ornella Vanoni’s choice to remain in Brera until her death speaks to the neighborhood’s enduring appeal beyond mere financial metrics. Her apartment represented what increasingly defines luxury in Italian real estate: authentic cultural connection, architectural heritage, and quality of life that transcends square-meter calculations.
Her funeral was held at the Church of San Marco in the Brera district of Milan on November 24, 2025, with her casket lying in repose at the Piccolo Teatro where her career began—a final testament to her deep roots in Milan’s cultural fabric.
For foreign buyers and investors, properties with cultural provenance or celebrity associations can command premiums of 10-20% over comparable units. While difficult to quantify precisely, the “story” of a property adds intangible value in Italy’s luxury market, where buyers increasingly seek authentic connections to Italian heritage.

Practical Guidance for Investors

For those considering Milan or Florence investments in 2025-2026:

Milan offers superior capital appreciation prospects, greater liquidity, stronger international buyer pools, and economic drivers beyond tourism. Best suited for: Primary residence buyers, capital growth investors, and those seeking Italy’s most cosmopolitan environment.
Florence provides higher rental yields, more stable pricing, lower entry points, and stronger cultural/tourism fundamentals. Best suited for: Income-focused investors, vacation home buyers, and those prioritizing Renaissance heritage over contemporary dynamism.
Both markets share common advantages: limited supply, UNESCO protections maintaining scarcity, growing international interest, and Italy’s improving fiscal environment for foreign residents.

Two Models of Italian Excellence

Milan’s transformation into a global business and lifestyle hub attracts buyers from across Europe, Asia, and the Americas seeking investment opportunities or second homes, while Florence maintains its position as a cultural icon with steady tourism-supported demand.
Ornella Vanoni’s Brera residence—though private details remain undisclosed—symbolizes what makes Milan’s luxury market distinct: the fusion of historic character with contemporary vitality, cultural authenticity with economic dynamism, and Italian tradition with global ambition.
As Milan continues evolving into a truly international city and Florence reinforces its heritage appeal, both markets will serve different but equally valid roles in diversified real estate portfolios. The choice between them reflects not just financial calculations but fundamental lifestyle preferences—cosmopolitan energy versus Renaissance tranquility, business dynamism versus cultural permanence.
For investors, homebuyers, and admirers of Italian excellence alike, both cities offer compelling opportunities in Europe’s most culturally rich real estate market. The data confirms what intuition suggests: in Italy’s luxury property sector, the only wrong choice is not participating at all.





Source: AD Italia