A sophisticated investment paradigm is emerging among international high-net-worth individuals seeking European real estate exposure: the strategic acquisition of dual properties in Milan and Lake Como. This bi-locational approach reflects evolving lifestyle preferences that balance urban dynamism with contemplative retreat, creating what industry experts describe as “a single extended territory of desire” within Lombardy’s luxury market.
Milan’s Market Dominance
Milan has established itself as the undisputed leader in Italy’s luxury real estate market, commanding approximately 16% of the national luxury stock with an economic value of around €7.7 billion, representing 12.5% of the country’s total luxury market value. The city has recently overtaken Venice as Italy’s most expensive market, with average house prices reaching €4,986 per square meter in the first quarter of 2025.
The Milanese market continues to demonstrate remarkable resilience, with projected price increases of 2-4% for 2025, driven by lower mortgage rates and renewed transaction activity. Properties typically sell within 60 days, with the average price per square meter expected to reach €5,700 by 2025.
Geographic variations within the city reveal the premium commanded by central locations. The Centro area reached €10,936 per square meter in February 2025, while peripheral areas like Bisceglie, Baggio, and Olmi average €3,040 per square meter. Historic neighborhoods including Brera, Quadrilatero della Moda, and San Babila near Milan Cathedral remain the city’s most prestigious addresses.
Urban Transformation Attracts Global Capital
Milan’s transformation through major urban development projects has fundamentally redefined its appeal for global investors. Developments including Porta Nuova, CityLife, and the ongoing regeneration of Scalo Farini are creating world-class residential opportunities within walking distance of cultural amenities and business centers.
International buyers, particularly from Switzerland, France, Germany, the UAE, and increasingly North America and Asia, are drawn to Milan’s exceptional airport connections, reliable infrastructure, and legal clarity in property transactions. The luxury residential segment demonstrates particular strength, with apartments in Porta Nuova achieving top prices of €13,500 per square meter.
Market dynamics reveal interesting patterns in buyer behavior. Over 65% of sales involve properties under 85 square meters, significantly higher than the national average, reflecting strong demand for compact urban living. Additionally, 52% of property transactions are supported by mortgages, facilitating market accessibility for international buyers.
Lake Como’s Investment Renaissance
Lake Como has evolved from seasonal retreat to year-round residence for international families implementing multi-generational investment strategies. The luxury real estate market experienced remarkable growth in 2024, with apartments selling for €1 million to €1.8 million, primarily driven by limited availability of high-quality new construction.
Luxury villas commanded prices between €2.5 million and €5 million in 2024, with certain areas like Laglio reaching €5.168.422, while lakefront properties average €4,000 to €7,000 per square meter. The average price range for all properties spans €500,000 to €3 million, with waterfront luxury villas reaching €5 million to €40 million.
Towns including Cernobbio, Moltrasio, Carate Urio, and Laglio were particularly sought after, offering a mix of historic villas and modern apartments with breathtaking views. The traditional triangle of Bellagio-Varenna-Menaggio remains iconic, while rising interest in lesser-known locations like Lezzeno, Faggeto Lario, and Moltrasio reflects buyer demand for intimacy and authenticity.
Properties in popular tourist areas command high rental rates year-round, making them attractive investment opportunities. The region benefits from protected character through heritage preservation laws, ensuring long-term value stability.
Strategic Investment Appeal
The dual-home lifestyle between Milan and Lake Como addresses fundamental shifts in high-net-worth lifestyle preferences. Milan provides urban sophistication, international connectivity, and business opportunities, while Lake Como offers restoration, privacy, and emotional resonance within a historically significant setting.
International families are increasingly structuring purchases as legacy investments, utilizing family trusts, international companies, and cross-border estate planning to ensure multi-generational asset protection. These buyers prioritize properties that transcend architectural trends, seeking villas and residences with historical character that become emotionally and symbolically irreplaceable.
Market Fundamentals and Future Outlook
Italy’s luxury residential real estate market is expected to reach $3.99 billion in 2025 and grow at a compound annual growth rate of 2.63% to reach $4.55 billion by 2030. This growth is supported by sustained international demand, particularly from European, U.S., and Middle Eastern buyers attracted to Italy’s cultural heritage, landscapes, and premium properties.
Expected price increases of at least 3% are anticipated for 2024-2025, with central towns like Bellagio, Menaggio, and Varenna seeing the highest growth rates. The combination of limited supply, protected environments, and evolving buyer preferences supports continued appreciation across both markets.
Sustainability and Technology Integration
Modern buyers increasingly demand properties combining traditional aesthetics with contemporary sustainability and smart-home features. Energy efficiency has become crucial, driven by EU regulations and environmental consciousness, particularly among younger international buyers.
Demand for “green” real estate has increased given rising energy prices, with buyers seeking properties featuring energy-efficient systems integrated with traditional elegance. This trend supports premium pricing for renovated properties meeting contemporary standards while preserving historical character.
Investment Strategy Advantages
The Milan-Lake Como investment strategy offers several compelling advantages: geographical diversification within a single region, complementary lifestyle benefits, legal and tax efficiency through Italian structures, and potential for both appreciation and rental income generation.
For international families, this approach provides European base establishment, educational opportunities through Milan’s international schools, wealth preservation through stable asset classes, and emotional capital building through meaningful place-making in culturally significant locations.
The convergence of urban sophistication and natural beauty, combined with Italy’s favorable investment climate and cultural prestige, positions this dual-market strategy as increasingly attractive for discerning international investors seeking both financial returns and lifestyle enhancement.
As global mobility increases and remote work capabilities expand, the Milan-Lake Como corridor represents a sophisticated approach to European real estate investment—one that addresses the contemporary question of where global citizens can live lives that truly reflect their values and aspirations.
Richard Tayar is the founder of Columbus International, an international real estate firm bridging markets between the United States and Italy, with focus on New York, Miami, Milan and Tuscany.
