Milan

Milan’s Next Cultural Powerhouse: Scirocco Hub Signals Urban Renaissance

By Columbus International,24 June 2024

In a bold move set to redefine Milan’s cultural landscape, Lendlease and Mare culturale urbano have joined forces to birth Scirocco, a cutting-edge cultural hub in the burgeoning Milano Santa Giulia district, reports Il Sole 24 Ore. This 500-square-meter hybrid space, nestled within the Spark Business District, represents a fusion of art, commerce, and community engagement.

Positioned strategically in the Spark 3 building, Scirocco aims to become a vibrant nexus for cultural, musical, and sporting events, accessible to all Milanese citizens. Andrea Capaldi, the visionary co-founder and artistic director of Mare culturale urbano, envisions Scirocco as more than just a venue. “We’re creating a social and cultural beacon,” Capaldi asserts, “a space that will resonate with both current residents and future inhabitants of this evolving neighborhood.”

This innovative project is a cornerstone of Lendlease’s ambitious urban regeneration initiative for Milano Santa Giulia. Spanning over one million square meters, this development is poised to become one of Italy’s most significant urban renewal endeavors. At its heart lies a sprawling urban park, surrounded by a carefully curated mix of public amenities and services tailored for both individuals and businesses. Claudia Imparato, head of fund & asset management at Lendlease Italy, exudes confidence about the partnership’s potential. “Scirocco transcends the conventional notion of an artistic or retail space,” Imparato explains.

“It’s engineered to be a catalyst for social cohesion and inclusivity, fundamentally reshaping the neighborhood’s DNA.” Industry insiders view Scirocco as merely the opening salvo in a series of transformative projects slated for Milano Santa Giulia. This district is on track to emerge as a dynamic new hub in Milan’s southeastern quadrant, challenging traditional urban living paradigms and setting new benchmarks for city development. As Milan continues to cement its status as a global design and fashion capital, projects like Scirocco underscore the city’s commitment to cultural innovation and community-centric urban planning. It’s a clear signal that Milano is not just preserving its rich heritage, but boldly reimagining its future.

Source: Il Sole 24 Ore

Real Estate Market Rebalancing Offers Buyers Attractive Opportunities

By Columbus International,13 June 2024

The real estate market is going through a transitional phase, moving from a period of strong euphoria to one of greater reflection. According to data from the Revenue Agency and the Tecnocasa Group, there is a decrease in residential property sales and an increase in the average discount applied to selling prices. In the second half of 2023, the average discount in Italy was 8.3%, an increase compared to the previous year.

This gap between the price requested by sellers and the price actually paid by buyers is widening, indicating greater caution in the market. The discounts vary depending on the type of property. Used properties suffer greater reductions (8.5%) compared to renovated (7.5%) and new (4.5%) ones, as they often require renovation work that entails additional costs. The most significant discounts, almost 12%, are recorded for properties purchased for investment purposes, where the buyer’s purchasing power carries more weight.

Economical properties and homes sold out of necessity suffer above-average discounts, respectively 10.2% and 9.6%. The position of the property also influences the discount: ground-floor apartments suffer discounts of 8.5%, while for those on the top floors, the discounts are more contained (7.7%). These data confirm the picture of a slowing real estate market. In fact, the Revenue Agency has recorded a sharp decline in residential property sales in the first quarter of 2024, equal to 7.6% compared to the same period in 2023 and 7.2% compared to the last quarter of 2023, affecting all areas of the country.

Source: Il Sole 24 Ore

In Milan, B&B Hotels Creates High-Tech Urban Sanctuary for Pollinators

By Columbus International,6 June 2024

For modern travelers, luxury transcends mere comfort and premium services. A new trend is emerging where sustainability and environmental stewardship are becoming indispensable elements of an elevated travel experience.

B&B Hotels, a rapidly expanding European hotel chain, has astutely capitalized on this burgeoning movement. In the vibrant Cenisio Garibaldi district of Milan, B&B Hotels has unveiled “B&Bees” – an authentic urban biodiversity oasis on the terrace of one of their properties. This unspoiled natural enclave provides wild bees, butterflies, and other crucial pollinators with a sanctuary to find nourishment and refuge, facilitating the rejuvenation of local ecosystems.

“Environmental responsibility is woven into the fabric of our corporate ethos,” declares Liliana Comitini, the dynamic CEO of B&B Hotels Italia. “With B&Bees, we sought to curate an immersive space where our guests can bask in nature’s splendor while nestled in the heart of the city.” This initiative is the fruit of a collaboration with Beeing, a trailblazing urban beekeeping startup. Gracing the terrace are specially designed “Bee Hotels” – natural havens where pollinators can forage and propagate, shielded from the perils of the urban landscape. Surrounding these sanctuaries, a meticulously curated array of nectar-rich plants like lavender, jasmine, and wildflowers beckons these invaluable insect denizens. For Comitini, however, B&Bees represents merely the latest milestone in a longstanding journey. “Reverence for the environment is a paramount priority for us. This commitment is epitomized by our recent Socotec certification, which evaluates our impact on biodiversity, local economies, and community engagement.”

Significantly, 73% of travelers now deem a brand’s dedication to society and the planet as paramount. A proportion poised to escalate as environmental consciousness becomes an increasingly defining hallmark of true 21st-century luxury. B&B Hotels resolutely aspires to spearhead this sustainable revolution.

Milan’s Real Estate Frenzy: Where Savvy Families Strike Gold

By Columbus International,29 May 2024

When it comes to secure investments, real estate remains an evergreen favorite among Italians, especially in the vibrant city of Milan. The Milanese metropolis cements its position as a highly coveted destination for property investors, ranking an impressive third nationwide with a staggering 35% of purchases driven by investment motives – surpassed only by Pavia and Mantua. This figure represents a remarkable uptick compared to 2022 when the percentage hovered at a modest 23.5%. Remarkably, a commanding 85% of these savvy investors opt for cash transactions, underscoring their formidable financial prowess.

Milan’s Magnetic Pull for Real Estate Enthusiasts

While the majority of Milanese buyers (65%) acquire properties for residential purposes, the remaining contingent wholeheartedly embraces the age-old adage that real estate is the supreme investment. Purchasing apartments to leverage the lucrative rental market is an entrenched strategy, particularly in a city like Milan – a veritable crossroads for students and professionals seeking temporary lodgings. In 2023, a notable 16.6% of real estate transactions across the Lombardy region were spearheaded by investors, marking an approximate 2% escalation from the preceding year. The most active age bracket driving these investments falls between 45 and 54 years old, accounting for an impressive 31% of real estate investment activities. This demographic enjoys heightened economic stability and enhanced access to mortgage financing, although only 15% of Lombard investors opt for this payment route.

The Cornerstone of Family Investment Portfolios

A staggering nearly 70% of real estate investors in Lombardy hail from family units, underscoring the pivotal role of property as a strategic asset for numerous households. The two-room apartment emerges as the preferred property type among investors, captivating 47% of buyers, closely trailed by the three-room apartment at 23.3% of preferences. These compact dwellings cater to the burgeoning demand for affordable and conveniently sized accommodations from the city’s student and professional denizens.

An Enduring Investment Bastion

Despite the ebbs and flows of the real estate market, investing in property continues to represent a prudent choice for many Italians, with Milan at the forefront of this trend. The city presents an enticing environment for investors, bolstered by an unwavering demand for rental accommodations and the potential to generate stable, long-term income streams. While some opt for outright cash purchases, others strategically leverage mortgage financing to diversify their investment portfolios. Irrespective of the chosen path, real estate remains an unassailably tangible and reassuring investment for countless Italian families.

Milan, real estate prices on the rise with several surprises, from Garibaldi to Moscova, from Porta Nuova to CityLife

By Columbus International,8 May 20248 May 2024

According to analyses by the Tecnocasa Group Research Office, residential property prices in Milan increased by 0.1% in the second half of 2023, bringing the overall annual growth to 0.3%.

Central areas like Garibaldi, Moscova, Porta Nuova and CityLife witnessed a 2.1% surge in values, being highly sought-after by domestic and international buyers looking to live, work and study in the city. Demand concentrated on spacious properties exceeding 200 sq.m, with multiple bedrooms, outdoor spaces and top floor units.

The highest prices, peaking at €15,000/sq.m for sales, were recorded in the Porta Nuova district. Some semi-central neighborhoods like Lambrate, Navigli and Famagosta experienced a slight price decline, partly attributable to the abundant supply of new constructions. However, the rental market remained vibrant, with average monthly rents of €1,500 for a two-room apartment in central zones. The Vercelli-Lorenteggio macro-area saw a 1.6% price hike, fueled by growth in Lorenteggio-Frattini and Tolstoj. The Lodi-Corsica area witnessed a 1% increase, propelled by ongoing works for the Olympic Village development. Modest declines were observed in the Bovisa-Sempione (-0.7%), Central-Station (-1.6%) and Navigli (-0.5%) macro-areas, with varying trends across different neighborhoods. The Bovisa district was bolstered by the Scalo Farini redevelopment project.

Prices remained largely stable in the Città Studi-Indipendenza area, with localized increases along Viale Abruzzi and Corso Buenos Aires. Rental demand remained robust, driven by students and non-resident workers. In summary, Milan’s real estate market experienced modest yet consistent growth in 2023, underpinned by the central areas and large residential units, while exhibiting heterogeneous dynamics across various semi-central neighborhoods.

Source: Monitor Immobiliare
Photo: CityLife Residences

Rental Price Surge During Milan Design Week

By Columbus International,26 April 202426 April 2024

The Milan Design Week, an event of international renown, has recently rekindled the spotlight on the Lombard capital, attracting a vast and passionate audience of design enthusiasts from every corner of the globe. The record-breaking 62nd edition saw the participation of over 2,600 exhibitors and the influx of 600,000 visitors, registering a 15% increase compared to the previous year. This success was evidently reflected in the city’s rental market, where housing prices experienced a vertiginous surge.

Data provided by the property management company Italianway, specialized in short-term rentals, and reported by Il Sole 24 Ore, reveals that the average daily rate for an apartment in Milan during the 2024 Design Week was €386, with a peak of €414 on the night of April 17th, marking a 7.5% increase compared to 2023. But how much can a week’s rental cost during this event? For a studio apartment, the average cost hovers around €1,354, while for a one-bedroom apartment, the figure rises to €2,030. For larger apartments with three bedrooms or more, the expenditure easily exceeds €2,700. The highest prices are recorded for luxury apartments in the city center, which can reach the considerable sum of €7,000 per week.

A veritable boom that has made fortunes for property owners but has put a significant strain on the wallets of those seeking accommodation during the Design Week period. Several reasons contribute to explaining this surge in rental prices. Firstly, demand significantly exceeds supply. The event attracts visitors from all over the world, many of whom are willing to pay high prices for accommodation situated in the heart of the city, close to exhibition venues and collateral events. Secondly, the supply of available rental apartments is limited. Not all property owners decide to rent out their homes during the Design Week, and those who do often apply higher prices to take advantage of the high demand.

Source: Immobiliare.it

Revitalizing Milan’s Southeast: MCA Unveils €3.5 Billion Milano Santa Giulia Project

By Columbus International,8 April 20248 April 2024

The new urban plan designed by MCA (Mario Cucinella Architects) has been unveiled, marking one of the largest urban regeneration projects in Italy. The central idea is to create a structure resembling a leaf, connecting services, commercial areas, schools, and residences around what aims to become Milan’s third-largest park. Present at the project’s launch were Mayor Giuseppe Sala and Urban Regeneration Assessor Giancarlo Tancredi.

Milano Santa Giulia is set to become a new gateway to the city and a neighborhood featuring residences, services, and retail spaces. It represents one of the major urban revitalization initiatives in Lombardy’s capital, focusing on the Southeast quadrant and the former industrial areas of Montedison. Total estimated investments for the project exceed €3.5 billion. Led by Lendlease, a real estate giant responsible for the area, the project will deliver 3,500 new housing units catering to various market segments, from private residences to student and senior living, to the innovative build-to-rent model. Lendlease will also oversee the development of business, food, and commercial districts. These complexes will be located adjacent to the multifunctional arena of Milano Cortina 2026 and a 260,000 square meter park. The masterplan, signed by MCA – Mario Cucinella Architects, envisions a total development of 1.1 million square meters, with completion targeted for 2032 and a strong emphasis on sustainability. Starting from June 2023, Lendlease, already engaged in the city with the Mind operation, acquired surface and development rights for the entire area, currently managed through the Msg Heartbeat real estate closed-end fund owned by Lendlease Sgr. With this acquisition, the fund becomes the effective promoter of the regeneration of the Northern Area.

Of the total €3.5 billion, €2.7 billion will be invested by the international real estate and urban regeneration group, with additional contributions from other parties, such as the Canadian pension fund PSP Investment, which invested in the Spark Business District. According to Fabrizio Zichichi, executive project director at Lendlease, this investment marks a significant step forward for the city, as highlighted by Mayor Beppe Sala during an event emphasizing the importance of developing Milan’s Southeast quadrant in the coming years. Milano Santa Giulia benefits from its privileged location, with access to Linate Airport, the ring road and highway system, the high-speed FS station at Rogoredo, and metro lines M3 and M4, surrounded by natural areas on the outskirts of the city. The new neighborhood aims to attract over 10 million visitors annually, including residents, students, event spectators at the Arena, athletes, and workers. It will be divided into two main zones, North and South, connected by pedestrian and cycling paths, public transport, and a promenade. The North zone will host commercial spaces and sports and recreational services near the multifunctional Eventim Arena, home to the 2026 Olympic Games.

Residences in the area will focus on the concept of sustainable living. The South zone will feature the Spark Business District, with offices and residences, as well as cultural institutions like the Conservatory of Music and the Spark Food District, dedicated to food and beverage. Manager Zichichi announced the imminent launch of the “Who we are Msg” campaign, which will activate the neighborhood with social, cultural, and sports initiatives, in preparation for the Olympics and beyond.

Image via Lendlease

The LEGO Group and Percassi redefine Milan’s real estate space

By Columbus International,28 March 2024

The Italian real estate landscape is destined for a vigorous evolution, catalyzed by the strategic alliance between the LEGO Group and Percassi, poised to inaugurate their latest endeavor in the heart of Milan.

March 29 marks an unmissable moment with the opening of the 26th LEGO Certified Store, located at Via Dante 4, an enchanting oasis of creativity embraced by the vibrant city center. The inauguration will be anchored by an unprecedented event: facing the store, in Piazza Cordusio, stands a monumental LEGO egg, 4 meters tall and weighing 1,200 kg, a captivating installation destined to enchant passersby. Matteo Morandi, CEO of Percassi Retail, shares the enthusiasm for this adventure, emphasizing the importance of positioning this iconic store in the pulsating heart of Milan, renowned as “the new street of Milan”, destined to become a beacon of creativity for all LEGO enthusiasts. Rossana Mastrosimini, Channel Director LEGO Certified Stores West Europe, reinforces this enthusiasm, celebrating the expansion of LEGO’s presence in Italy and the continuous innovation in the retail concept.

The new flagship store skillfully combines digital and physical elements, offering an ‘immersive’ experience that will enchant both young and old alike. As Milan prepares to welcome this new entry into retail, attention on the real estate market remains lively, especially in the context of a 40% decline in mortgages. However, the luxury segment of the real estate shines as a beacon of stability amidst uncertainties, representing only a small fraction of the total market but significantly contributing to its overall value. According to the Observatory of the Luxury Real Estate Market in Italy 2023, Milan excels as the gravity center for the luxury segment, with a stock of over 6 billion euros, representing 13% of the national total. This data remains surprising considering the solidity and consistency of the sector, with 99% of the stock composed of apartments, reflecting constant demand and sustained growth.

This upward trend has not escaped the LEGO giant, which in 2022 has already made its triumphant entry into Florence, converting spaces previously occupied by the Disney store.

In collaboration with Percassi, this new LEGO emporium introduces unprecedented innovation: the “Mosaic Maker”. Customers now have the opportunity to create personalized portraits using only LEGO bricks, through a process that transforms a photo into a set of 4,500 pieces, making the memory tangible and unique. In a context of continuous transformation, the LEGO Group and Percassi emerge as small but great pioneers, redefining not only the retail landscape but also the real estate space, weaving an increasingly vibrant and creative urban fabric for future generations.

Image: LEGO Firenze

La Lombardia è la regione con più transazioni in Italia

Nhood’s Innovative Urban Regeneration Project Set to Transform Piazzale Loreto in Milan into Vibrant Community Hub

By Columbus International,22 March 2024

Carlo Masseroli, CEO of Nhood Italy, shares his vision regarding Piazzale Loreto, emphasizing the potential of the location and the challenges associated with generating commercial pathways in less central and more complex contexts. Speaking to Sole24Ore, Masseroli outlines the “Loc-Loreto Open Community” project, winner of the Reinventing Cities competition launched by the Municipality of Milan in 2021 and currently in the construction phase to redevelop Piazzale Loreto. Masseroli explains that the success of this initiative lies in the synergistic relationship between the public and private sectors, crucial for effective urban and real estate regeneration. Masseroli highlights the strategic importance of Piazzale Loreto in Milan, frequented by a significant number of people using the subway and by residents of the densely populated surrounding area. However, the commercial route along Corso Buenos Aires towards Piazzale Loreto is currently underdeveloped.

The goal of the project is to transform this location into a destination by engaging various market brands to start construction by May. The plan includes installing retail outlets of various sizes to meet the needs of passersby and the local community. An innovative aspect of the project is managing the square as a reference point for the area, a model absent in Milan but present in other cities. Masseroli sees this initiative not only as a local challenge but also as an opportunity to experiment and subsequently export the adopted model. Unlike past attempts with commercial districts, the project aims to create collective value greater than the sum of individual commercial activities. However, bureaucratic complexities have been an obstacle to the success of such initiatives.

The proposed model could be replicated in other underutilized squares, especially those near subway stops, to stimulate retail attractiveness and dissemination, generating added value for surrounding spaces. The project also presents an advantageous socio-economic return on investment (SROI), estimating that every euro invested generates a value of four euros. Rents for commercial spaces near Corso Buenos Aires, near Piazzale Loreto, range from 1,000 to 2,000 euros per square meter per year, and the project envisages the distribution of commercial spaces over a total area of 8,000 square meters. This model, rooted mainly in the Anglo-Saxon world, where commercial districts are privately managed, is also being implemented elsewhere. Nhood is currently implementing a similar project in Spain, confirming the international potential of this innovative urban and commercial regeneration strategy.

The effect of luxury neighborhoods on more peripheral ones: the new real estate trend in Milan

By Columbus International,21 March 2024

A recent real estate report, the “Wealth Report 2024” dedicated to Milan and curated by Knight Frank, an international network specialized in luxury property brokerage, has revealed an interesting phenomenon: the rise in real estate values in luxury neighborhoods such as Porta Nuova is directly influencing prices even in traditionally less central areas like Quarto Oggiaro. Although the report does not explicitly mention these neighborhoods, it highlights the significant impact that the strong demand from foreigners in high-end neighborhoods has had on the growth of real estate prices in Milan in recent years.

Initially, it may seem surprising, considering that the study focuses on Uhnwi, i.e., those with exceptionally high net income (generally exceeding 30 million euros), a rather exclusive buyer segment. However, both Knight Frank’s report and the Tirelli & Partner Observatory confirm that the main buyers of luxury real estate in Milan are precisely these extremely high-income individuals, many of whom are foreigners. The choice of Milan as a destination for high-level business activities in the country is well known, while those seeking a quiet place for retirement or holidays tend to prefer regions such as Tuscany or Sardinia. But what makes Milan so attractive for luxury real estate investments? Christian Dominici, a Milanese accountant, explained that in addition to its status as an important international financial center, Milan also offers a high quality of life, with a vibrant cultural scene and excellent gastronomy. From an investment perspective, Milan stands out as the only Italian city capable of guaranteeing stability in values over time. While a villa in Sardinia may not maintain its value significantly over time, a luxury property in Brera or Corso Magenta offers more concrete profit prospects in the long term. A key factor that has contributed to Milan’s attractiveness for Uhnwi is the favorable tax regime offered by Italian legislation.

Those who transfer their residence to Italy can benefit from a reduced tax of 100,000 euros per year, with an additional 25,000 euros for each additional family member, thus avoiding other taxes on foreign income in countries with which Italy has agreements against double taxation. This tax advantage has led to a significant increase in individuals, including high-level athletes, choosing Milan as their tax residence. Even foreigners with more modest incomes find it advantageous to invest in real estate in Milan thanks to the generous tax incentives offered for the renovation and energy efficiency of homes.

Population registry statistics highlight the significant presence of high-income foreign citizens in Milan, mainly from France, Germany, the United Kingdom, the United States, Switzerland, and Japan, many of whom choose to reside in the central districts of the city. These data confirm the increasingly central role of Milan in the international luxury real estate investment landscape.

Source: Corriere Milano