Milan

New Gems of Italian Hospitality in 2024: From Florence to Capri, Here Are the Unmissable Hotels

By Columbus International,3 January 2024

Among the New Year’s resolutions, the enthusiasm for exploring new places and enjoying a bit more luxury during travels is inevitable. Tourist destinations in Italy are enhancing their offerings, with historic hotel groups and smaller boutique hotels ready to welcome tourists with high-quality services, pampering, and captivating designs.

Here’s an overview of the most anticipated hotels in Italy in 2024.

Florence: Collegio alla Querce, a Garden Hotel with a View of the Duomo
Auberge Resorts Collection expands to Florence with a complex that encompasses three 16th-century buildings, complete with original chapel and theater. In the former preparatory school, a new hotel with 61 rooms, 20 suites, and a 210-square-meter master suite has been created. Guests can enjoy baroque gardens overlooking the Duomo on one side and lush Chianti vineyards on the other. The heart of the hotel is an internal garden illuminated by a skylight, adorned with lemon trees, and featuring an impressive fireplace. Collegio alla Querce offers a complete experience with a restaurant, a glass-enclosed garden room, a bar, a cigar lounge in the former admissions office, and a poolside bar offering unique wood-based cocktails.

Florence: Anglo American Hotel Florence, Charm, and Sustainability
Hilton’s Curio Collection presents the new Anglo American Hotel Florence in the historic center of Florence. The structure reflects the city’s majestic charm and places particular emphasis on sustainability, with the restoration of original architectural features. The hotel’s outdoor courtyard hosts a Tuscan menu inspired by local flavors and traditions.

Milan: Max Brown Missori, Milanese Style and ’70s Vibes
The Dutch boutique hotel group Max Brown makes its entrance in Italy with a 64-room hotel in Milan, Max Brown Missori. The mission to infuse the cheerful and refined style of Sircle Collection was entrusted to interior designer Saar Zafrir, who, in collaboration with the in-house design team, renovated and redesigned the property drawing inspiration from ’70s vibes. Most of the original furniture has been restored, while others have been donated to local charities. Max Brown Missori aims to be a welcoming and charming place for travelers wishing to immerse themselves in Milanese life like true locals. For this reason, Italian-made details like colorful SMEG kettles will be incorporated, along with items from around the world, such as a Crosley turntable in each room, and communal spaces designed to encourage social moments (e.g., a basketball court). With many rooms overlooking the Garage delle Nazioni, the hotel also offers a lively ground-floor area ideal for meetings, rest, or work.

Milan: Calimala, a Surprise in the Shadow of the Madonnina
Born in Florence, where it boasts one of the best rooftops in the city, Calimala opens a second hotel in Milan, near Porta Venezia at Via Melzo 7. This will be a 90-room hotel with a gym, 2 rooftops, a bar, a restaurant, and a pool. Little is known yet, but if the style mirrors that of Florence, we can expect interiors dialoguing between historic structures and modern furnishings.

Rome: Casa Monti, an Artistic Residence Celebrating the Dolce Vita
The Leitmotiv family-managed group will debut in spring in Rome with Casa Monti. The new hotel will pay tribute to the Rione Monti, with its craft shops, wine bars, and contemporary art galleries. The five-star hotel will consist of 36 rooms, a restaurant, an aperitif bar, a terrace, and a spa with a panoramic view of the city. The design is by Laura Gonzalez, conceived as an artistic residence open to the world and the city, celebrating the sweet life, inspired by the muse of Rome and its neighborhood. Casa Monti draws from a vibrant community and celebrates eccentricity and pleasure. A color queen, Laura Gonzalez was the right person to interpret that feeling of relaxation and nonchalance that the world envies us.

Rome: Romeo, Between Zaha Hadid and the Sixteenth Century
The Romeo collection, launched in 2023, is making giant strides to become one of the benchmarks of Italian hospitality, thanks also to renowned international architects. The project for the new hotel in Rome is signed by Zaha Hadid Architects and is nestled in a distinctly Italian sixteenth-century palace not far from Piazza del Popolo, once the residence of the Serroberti-Capponi family and now ready to offer dream stays. The studio has had the opportunity to reinterpret its “no stairs-no texture” motif here in an entirely new way: the use of Italian marbles and precious woods creates a new dialogue with the city of Rome, expressed in the 74 rooms and suites, with magnificent views and original frescoes restored to their former glory. The hotel also boasts Il Ristorante, a gastronomic venue directed by Alain Ducasse, the world’s most starred chef. Romeo Roma also has a courtyard with an indoor and outdoor pool, from which you can admire the archaeological ruins. The offer is completed by site-specific installations by renowned contemporary artists, a rooftop lounge bar, and La SPA Sisley Paris.

Rome: Corinthia, Michelin-starred Cuisine under the Frescoes
Corinthia also announces a new opening in the Eternal City, scheduled for summer, in Piazza del Parlamento. The former headquarters of Banca d’Italia, built in 1904, welcomes with an imposing entrance into the two-story lobby. Ensuring hospitality excellence, from food to room service, will be Carlo Cracco. With such a name, it was imaginable that the cuisine would play a central role, and indeed, the ground floor is animated by a restaurant surrounding the garden. The interiors were created by G.A Design, and there are 60 rooms and 21 suites, a rooftop, a luxury spa. The environments have been preserved with original chandeliers and classic marbles, renewed, however, with elements of a more modernist taste. The hotel’s Signature Suites will have private balconies with views of the elegant square and the city’s majestic monuments. Guests will also have access to a spa with a vitality pool, relaxation area, sauna, steam room, and treatment rooms. The Historic Suite, the hotel’s most exclusive, will feature marbles in all its parts (starting with the sculpted bathtub) and full-wall windows.

Rome: J.K. Place Residence Club, a New Way to Stay in the City
A great mystery also surrounds this boutique hotel that will open inside a noble 17th-century Roman palace, once the seat of the architecture faculty, a short walk from Piazza di Spagna. The hotel will be accompanied by the Residence Club consisting of 15 new apartments on Via dei Prefetti, designed by the Florentine architect Michele Bonan. Each Residence will have a butler and a private concierge service, while among the common areas there will be a restaurant, a private lounge, and a state-of-the-art gym, open to both club members and guests staying at J.K. Place Roma.

Capri: Grand Hotel Quisisana, a Rich History Update
Since 1860, the Grand Hotel Quisisana has been synonymous with the splendor of Capri, its sea, and its exclusive clientele. Originally built in 1845 as a sanatorium (as the name suggests), the hotel is rich in history and features a Liberty-style theater designed by Giò Ponti in 1929. Over the years, figures like Ernest Hemingway and Jean Paul Sartre have crossed the marble lobby and admired the beauty of the park. The sun-drenched bedrooms are the quintessence of maritime leisure, with bright floors and furnishings emphasizing the view. For the 2024 season, there are many novelties, starting with the Colombaia restaurant, offering Italian-inspired cuisine and an extensive wine list. An outdoor pool, tennis courts, and new rooms will also be inaugurated. Equally important is the completion of the transition to solar water heating and the production of 100kw, the largest private solar production in Capri.

Source: Elle Decor

Leonardo Maria Del Vecchio: The Gastronomic Rise of Luxottica’s Fourth Child

By Columbus International,20 December 2023

It’s all a matter of specific weight or, if you prefer, firepower. Three establishments are already open in Brera, in the heart of historic Milan, with declared plans to expand further and the goal of reaching a turnover of sixteen million euros per year. Leonardo Maria Del Vecchio, the fourth child of the former Luxottica owner, is more than just making an incursion into the restaurant world; no special lenses are needed to glimpse the features of a potential new empire. Let’s organize things a bit. Del Vecchio Jr is already the Chief Strategy Officer for the family company, holds the position of CEO of Salmoiraghi e Viganò, and, more recently, has also become part of Triple Sea Food, of which he controls 78% through his holding, Lmdv Capital. Three venues in Milan, as mentioned at the beginning of the article. Let’s briefly outline the timeline: in September 2022, Vesta, a seafood restaurant, arrives. A few months later, in April 2023, Casa Fiori Chiari opens, a few meters away from the “first episode.” The third chapter is Trattoria del Ciumbia, which opens its doors just in time for the Christmas holidays.

The goal, as mentioned earlier, is to achieve an annual turnover of sixteen million euros, making the Brera district a small capital of haute cuisine. “Another challenge was making it clear that three high-level adjacent restaurants would not compete with each other,” explained Davide Ciancio, CEO of Triple Sea Food, “but would expand the market by creating a district capable of attracting our target and establishing itself in the imagination, much like other sectors in the city, starting with fashion.” Ambitious and interesting project, there is no doubt; however, it could be just a prelude to the more comprehensive adventure of the fourth child of the Del Vecchio family in the restaurant world.

The company has already hinted at the opening of two new venues in two other Italian cities, which remain unnamed at the moment. Once this new step is completed, the goal is to shine with new openings in Italian and international tourist hubs. All that remains is to be patient and keep a close eye, in other words. Meanwhile, Leonardo Maria Del Vecchio continues to plan, especially in his father’s footsteps, who passed away shortly before the first Milanese opening: “I wanted to surprise him,” Leonardo Maria explained, “by having his favorite dish on the table: pasta with clams.”

(Source: Dissapore)

Italian Real Estate Market in 2024: Growth and Challenges Between Milan and Florence

By Columbus International,20 December 2023

What will be the fate of the Italian real estate market in 2024? There is a potential increase in property values, marking a departure from the relatively stable trends observed in 2023. This forecast stems from an analysis conducted by Immobiliare.it Insights, which identifies Milan as the city with the most expensive real estate transactions, while Florence stands out for having the highest rental prices.

Regarding sales, the report predicts a 6% increase in Catania, 4.1% in Verona, 2% in Milan, and 1.1% in Rome. For rentals, a significant increase is expected in Naples (+16.8%) and Florence, where an 18% rise is anticipated. Despite not experiencing the highest percentage growth, Milan will maintain its position as the city with the highest sales prices. In the Lombard capital, the purchase of a property is expected to average almost €5,500 per square meter, representing an increase of about €100 per square meter compared to current values. Positive fluctuations, around +3%, are also anticipated for Naples, Genoa, Bari, Venice, and Turin. The projected prices per square meter vary widely, ranging from €3,415 per square meter in Venice to €1,707 per square meter in Genoa. Additionally, both Bari and Turin are expected to surpass €2,000 per square meter by the end of the next year, marking a new development for both cities. The situation is different concerning rentals.

In 2024, Milan may lose its position as the city with the most expensive rentals. According to Immobiliare.it’s analysis, Florence is expected to approach €29 per square meter by the end of the following year, an increase from the current €24.5 per square meter. Milan, despite an increase to €25 per square meter, will be positioned behind the Tuscan capital but still on the rise compared to the current €24.7 per square meter. According to the report, in terms of sales volumes, both 2023 and 2024 deviate from the exceptional performance recorded in 2022, and the trend will return to a more regular pace, similar to what would have been expected in the absence of the Covid-related crisis.

Milan Real Estate Market: Slowdown in Residential Transactions in the Second Half of 2023

By Columbus International,29 November 2023

The residential property transaction performance index highlights a sudden slowdown in the Milan real estate market in the second half of 2023. The main drivers can be attributed to decreased demand compared to previous semesters, attributed to the increased difficulty for buyers in accessing credit. This is evident from the 3rd Real Estate Market Observatory 2023 by Nomisma regarding the real estate market in the Lombard capital.

In the first half of 2023, according to Nomisma, the residential market in Milan experienced a significant setback, with only 12,490 transactions compared to 15,600 in the first half of 2022 (-20%). This decline in transactions has partially affected the dynamics of prices for new and used properties, with a still present but significantly reduced growth compared to the previous semester. In the second half of 2023, prices for new and renovated homes experienced a slowdown (-0.6% on a semi-annual basis), despite an annual increase of +1.7%. The average discount percentage on the initial asking price (around 3-4%) remains stable, confirming a significant decrease compared to used properties. The sector of used properties shows a positive performance, with an increase in average prices of +1.3% on a semi-annual basis and +3.3% on an annual basis. The average selling times for used homes range from 3 to 4 months, maintaining an average discount of 8-9%.

These figures occur in a market context characterized by limited supply elasticity. Regarding rentals, the demand for rental homes in Milan continues to grow in the second half of 2023. Rental rates show a positive change (+2.9% on a semi-annual basis), with an annual increase of 4.7%. The average gross rental yield remains stable at 4.8%. On average, it takes about 2 months to complete a rental transaction, although properties with desirable features may remain on the market for only a few days. Nomisma’s survey suggests that approximately 50% of agency-managed demand is oriented towards purchase transactions, supported by a mortgage in 73% of cases. The demand pressure on the rental market is increasing due to the gradual increase in mortgage interest rates, on one hand, and the growing number of residences shifted to the short-term rental market on the other. In the first half of 2023, the transaction activity of retail offices in Milan experienced a significant year-on-year decline of around -33%, with only 430 properties exchanged in the market, compared to 652 in 2022 and 671 in 2021. In the second half of 2023, average prices continue to rise for the fourth consecutive semester, with positive changes both on a semi-annual basis (+1.2%) and on an annual basis (+2.9%), despite a negative result for properties located in business districts. Average discounts remain stable in attractive areas (9-11%) on a semi-annual basis but increase in the suburbs (14%). The average rental rates have been increasing since the first half of 2022, with an average annual growth rate of +1.2%.

The context remains stable for absorption times, both for sales (6 months) and rentals (4-5 months). The average gross annual rental yield remains almost stable at 5.1%. In the first half of 2023, the volume of retail store transactions in the Milanese market experienced a slight year-on-year decline (-2.6%). In the retail sector, the average price trend continues to rise on an annual basis (+1.8% semi-annually). The absorption speed decreases progressively for more central locations, with average selling times of 4-5 months in the city center and 6-7 months in the suburbs. The average discount on the asking price increases slightly (9.5%), remaining the lowest among major cities and the only one in single digits. In the rental sector, average rental rates increase slightly on a semi-annual basis (+1.3%). The market shows fast absorption times (3-4 months), slightly longer in the suburbs. Average gross annual yields remain almost stable at 6.7%.

The Renaissance of Isola: Milan’s Blend of Art and Life (Sources: Time Out and La Repubblica)

By Columbus International,7 November 2023

Milan once again proves itself as one of the trendiest cities in the world, and this time it’s the Isola neighborhood that shines in the spotlight. The annual Time Out ranking, published by La Repubblica, lists the most fashionable urban areas worldwide, and the Italian city makes its appearance among the top ten.

The surprise is significant, considering that the top ten of this list is generally dominated by well-known tourist destinations like Paris, Barcelona, Lisbon, and Zurich. Isola, located in the heart of Milan, has long been considered an isolated neighborhood, quite literally cut off from the rest of the city by the railway line that runs alongside it. However, in recent years, the district has undergone an extraordinary transformation through redevelopment projects initiated after Expo 2015. Today, Isola has been recognized by Time Out as one of the coolest neighborhoods in Milan.

The neighborhood is characterized by colorful houses, artist studios, and authentic local spots. While maintaining its original spirit, Isola has managed to balance it with a lively atmosphere, featuring street art, shops run by young entrepreneurs, independent galleries, and numerous trendy bars. Time Out notes that before Expo 2015, many people would never have considered visiting this neighborhood, but now Isola proudly claims the title of the trendiest neighborhood in Milan. This recognition demonstrates that it’s not always necessary to head to the most famous neighborhoods to discover the authentic soul of a city. Areas like Isola, which have transformed from neglected industrial areas into vibrant cultural and artistic centers, attract young people, students, and families seeking a genuine community, social initiatives, and a superior street life quality. The Time Out ranking takes these factors into account, highlighting places loved by local residents. Isola in Milan is just one example of how lesser-known neighborhoods can emerge as trendy destinations. This assertion shows that beauty and style can be found anywhere, making the urban world an increasingly fascinating and full of surprises place.

Milan’s Shifting Real Estate Landscape: Metro Influence and Emerging Investment Opportunities

By Columbus International,2 November 2023

The real estate market in Milan is constantly evolving, thanks in part to the development of local infrastructure, particularly the metro network, which has become an essential mode of transportation for many residents. The proximity to a metro station has a significant impact on housing prices, but this also depends on the type of property, whether it’s new or used, renovated or in need of renovation.

In a recent market analysis conducted by Abitare Co., a significant difference in price increases has emerged over the last 5 years between used and fixer-upper homes and those that are new or completely renovated. This difference is particularly noticeable when homes are located near one of Milan’s 5 metro lines: the Red, Yellow, Green, Lilac, and even the Blue line, which is still under construction. Examining different metro stops reveals substantial price differences in certain lines. For instance, on the Red line, the highest price per square meter is found in the areas of Molino Dorino and San Leonardo, with prices around 2,500 euros, whereas in the Duomo, Conciliazione, and San Babila areas, prices exceed 10,000 euros per square meter, reaching as high as 15,500 euros around Duomo. Generally, prices on the Red line are not considered affordable, with eight stops surpassing 10,000 euros per square meter. Additionally, prices increase significantly in the areas north of Loreto and Sesto San Giovanni, with over 40% increases near Porta Venezia. Prices in the Duomo area are incomparable to those on the Yellow line, where, for example, Montenapoleone reaches 19,000 euros per square meter, with a 43.2% increase. Affordable housing can be found in areas like Porto di Mare (2,900 euros), Comasina (2,950 euros), and Affori FN (3,100 euros). A similar trend is observed on the Green line, with areas like Cascina Gobba and Crescenzago having prices around 3,300 euros per square meter, and areas like Moscova and Garibaldi experiencing increases of 44.6% and 36.9% due to the redevelopment of Porta Nuova. Stops between Porta Genova and Piazza Abbiategrasso have an average price slightly below 5,000 euros. On the Blue line, prices in the San Cristoforo area recently reached 5,200 euros per square meter, reflecting a more than 40% increase due to high-quality residential projects such as Bosco Navigli. For more affordable prices, one can consider areas like Gelsomini and Segneri, offering properties for less than 4,000 euros per square meter. Conversely, high-profile areas linked to the Blue line, like Sforza Policlinico (10,600 euros) and Santa Sofia (10,500 euros), require an investment nearly three times as high.

For more budget-friendly options, living near the Lilac line in the Bicocca area, where the average price hovers around 3,900 euros per square meter, with a 35.4% increase, is an option, although still a fraction of the prices in the City Life – Tre Torri area (12,300 euros). The Milanese metro network is set to expand further in the coming years, with urban regeneration projects planned for stops such as Isola and San Siro. The latter could become particularly strategic in light of the potential construction of two new stadiums in the Milan hinterland, like Rozzano and San Donato, though they are still in the planning and approval phases. These developments could inevitably increase the value of surrounding properties, a common occurrence in cities with national stadiums. Furthermore, the expansion of the metro network, including the possible addition of the M6 in Milan, covering Municipality 5, which currently has limited metro service, could bring significant benefits to properties in the area. The presence of prominent universities nearby could ensure a steady influx of students, making real estate investments such as buy-to-rent and build-to-rent very promising. Of course, these benefits will be fully realized once the ongoing construction work is completed.

Via Wall Street Italia

The Uncertainty of the Real Estate Market in Italy: A Challenge in a Complex Financial Environment (Source: Monitor Immobiliare)

By Columbus International,31 October 2023

The real estate scenario in 2023, let’s admit it, is not the rosiest one. Mortgage rates are on the rise, short-term rental taxes have been “adjusted” upward, inflation is affecting entire households, and there is a looming specter called “recession.”

The sector that had resiliently weathered the pandemic crisis is now confronted with an unreachable cost of living. Indeed, the Italian real estate sector is grappling with a set of significant challenges in the first nine months of 2023. Key factors driving this situation also include difficult access to credit, increased financing costs, and competition with government bonds. These factors have had a notable impact on the contraction of the real estate investment market, as highlighted by the Real Estate Price Index (Ipi).

Despite an improvement in the macroeconomic context, the data presented in the recent Ipi report reveals a drastic decline in the real estate market, with a 65% contraction compared to the same period in 2022 and a 67% decrease compared to the five-year average. This translates to a total of only 3.16 billion euros in investments. In the third quarter, real estate transactions reached only 1.072 billion euros, in line with what was observed in the first two quarters of the year. When we delve into specific sectors, the Logistics sector emerges as the most resilient, with a total of almost 500 million euros in investments, representing over 46% of the total investments. Investments are primarily concentrated in Northern Italy.

Furthermore, there is a general increase in prime rates and net yields, remaining above 5.25%, showing a 25-basis point increase compared to the first half of the year. In the Living sector, promising results are recorded, with investment volumes in the quarter amounting to 165 million euros, making up 15% of the total for the period and a total of 455 million euros since the beginning of the year. During this quarter, 84% of investments were concentrated in Milan, mainly in residential development and urban revitalization projects, predominantly associated with the “Build to Rent” concept.

The Leisure market has been driven by a significant resurgence in tourist flows and has recorded investment volumes of approximately 107 million euros in the quarter, bringing the total for the year to 387 million euros. The most significant operations have been concentrated in the main tourist destinations in Central Italy. The Office asset class, despite registering transactions totaling 105 million euros in the quarter and 552 million euros since the beginning of 2023, reflects the cautious attitude of investors toward this segment. Milan and Rome represented 79 and 21 million euros of these transactions in the period, while other regional cities, such as Naples, continue to demonstrate good performance.

In the Retail sector, investments amounted to about 94 million euros in the quarter, bringing the total for the first three quarters to 345 million euros. This represents growth compared to the same period in 2022, thanks to various transactions related to shopping centers in regional markets. The remaining investments, around 100 million euros, were distributed among mixed-use properties, the Healthcare sector, and some smaller operations in the Alternative sector, with particular attention to telecommunication infrastructure.

In summary, the Italian real estate sector is navigating a complex financial environment, but it still presents promising opportunities in specific segments, such as logistics, residential, and tourism. Investors remain cautious, but the market shows signs of resilience and adaptation to current challenges.

La Lombardia è la regione con più transazioni in Italia

Patrizia Reggiani, New Owner for the “Gothic” Villa. Sold for 9.5 Million Euros (Source: Il Giorno)

By Columbus International,23 October 2023

At the intersection of Via Andreani and Via della Guastalla, facing the homonymous gardens, stands the renowned “Gothic” villa, known for having belonged to Patrizia Reggiani, ex-wife and mastermind behind the murder of designer Maurizio Gucci. According to Il Giorno, the property at number 5 Via Andreani has been sold for nine and a half million euros to a couple, with him being British and her Austrian, residing in the Comasco region.

The internal renovation of the house, featuring a basement, ground floor, and two elevated floors, has been entrusted to a construction company based in Parre, in the province of Bergamo. The villa witnessed the return of Reggiani, now seventy-four, on September 16, 2013, after the supervisory court decided to suspend her 26-year sentence. She had been convicted as the instigator of her ex-husband’s murder, who was shot three times by a hitman on Via Palestro on March 27, 1995. After her release from San Vittore prison, Reggiani took care of her mother Silvana Barbieri, along with the housekeeper and the Ceylonese servant who were guests in the villa. It was actually Reggiani’s mother who acquired the shares of the company that owned the property in Guastalla back in 2004.

According to Il Giorno, Reggiani currently resides in an apartment near San Babila, not far from the penthouse where she had lived with Gucci for a period of time. The house near the Duomo that once hosted them was sold in 2022 for twenty million euros to entrepreneur Risha Suah, an Indian and the owner of Jekson Vision, a company specializing in pharmaceutical packaging with various locations worldwide, including India, USA, Russia, Malta, Germany, and the United Kingdom.

Italian Real Estate Market in September 2023: Milan Takes the Lead with Over €5,300 per Square Meter (Immobiliare.it)

By Columbus International,3 October 2023

In September 2023, the average cost per square meter to purchase a house in Italy stands at €2,122. However, if we consider Milan, prices soar to over €5,300 per square meter.

These figures have been revealed by the monthly Observatory of the Italian real estate market by Immobiliare.it Insights, pertaining to property transactions in September 2023. There are no significant variations in house sale prices across the entire national territory.

The national difference is 0.2% compared to the previous month (3.2% compared to the same period last year), with a slight variation between the Northern regions (0.6%) and the Central-Islands area (-0.2% and -0.1%). The average price per square meter on a national level reflects vastly different scenarios. While in the Central-Northern regions, prices comfortably exceed €2,000 per square meter, in the South and Islands, they stabilize between €1,300 and €1,500.

In August, there was a nearly 9% drop in real estate supply in all regions, particularly in the Northwest and Center with a -10%. In September, the situation changed drastically, with a national average growth of over 9.1%. The areas that had experienced a significant decline the previous month are the ones that show the most recovery: Northwest (+10.5%) and Center (+10.1%), followed by the South (+8.1%), Northeast (+6.9%), and Islands (+6.5%). A similar trend is observed in demand: in August, due to seasonality, there was a sharp decline, while in September, there is a recovery, with peaks of 25.2% in the Northwest. The national average surpasses 20%, precisely 21.3%.

Demand is growing everywhere, albeit less markedly in the Islands, where it stands at 8.2%. Average rental prices show a trend towards stability, with slight increases in both major cities (+0.4%, at €3,250 per square meter) and smaller centers (+0.2%, at €1,797 per square meter) – the latter being those with fewer than 250,000 inhabitants. The most noticeable aspect emerges when analyzing demand and supply: there is a clear difference between major cities and smaller centers. In cities, there has been a rush in sales contracts, with a demand growth of 33.4% compared to August, although there is a decline of -4.1% compared to the same period last year. In smaller centers, there is an increase of 11.6% (-0.3% compared to September 2022). Simultaneously, supply has also expanded: +20.8% in centers with over 250,000 inhabitants and +6.4% in those below this threshold.

Milan reaffirms itself as the most expensive city in Italy. To purchase a property, one would need €5,301 per square meter. This is the first time that the €5,300 threshold has been surpassed, given that in August, the price was €5,271 per square meter. Bolzano secures the second spot with €4,657 per square meter, slightly lower than the €4,684 per square meter in August, followed by Florence with €4,125 per square meter (compared to €4,130 in August). Among provincial capitals, Catanzaro is the least expensive, at €988 per square meter.

Investing in Milan’s Real Estate: Where’s the Best Return? (Source: Immobiliare.it and La Repubblica di Milano)

By Columbus International,18 September 2023

Looking to invest in real estate? Perhaps it’s better to focus on properties in the outskirts rather than the heart of the city. This is the main conclusion of a study conducted by Immobiliare.it exclusively for Repubblica Milano, which examined the gross profitability of various city areas. Experts compared the average selling prices of properties in each neighborhood with market rents, providing an insight into potential real estate investments.

The study results indicate that the most cost-effective area for real estate investments includes Bisceglie, Baggio, and Olmi. In these areas, the average cost of a home (mainly studios or small one-bedroom apartments) is approximately €165,400, with average monthly rents amounting to €950. This translates to an average annual yield of 7.38%, surpassing the citywide average of 5.01%. In second place is the Ponte Lambro-Santa Giulia macroarea, offering an average yield of 6.7%. The third spot goes to the Affori-Bovisa area with 6.62%. Conversely, the Arco della Pace-Arena-Pagano area has an average yield of 3.45%, even lower than the Garibaldi-Moscova-Porta Nuova area at 3.49%. “By purchasing a one-bedroom apartment in the areas outside the 90/91 circular line, the price is nearly 50% lower compared to a property in a central city location (€230,000 versus €430,000)”, explains Antonio Intini, Chief Business Officer of Immobiliare.it. “Furthermore, the rental differential decreases to 25% (€1,100 versus €1,480).

This is primarily due to two factors: on one hand, the rental market is more responsive to socioeconomic changes compared to property transactions, and in a city like Milan, with various attractive areas, growth affects the entire territory. On the other hand, not owning the property often pushes renters to seek alternative solutions if rents in the central and desirable areas exceed their budget, while when purchasing, the choice of location remains a significant factor,” adds the expert.