Milan

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.

(Source: Sole24Ore) Milan’s Rental Market Skyrockets: Double the Growth Rate of Rome in One Year

By Columbus International,31 August 2023

In the month of July, prices and rental rates remain stable in the two major Italian cities, although the year-on-year growth for rents remains significant. The affordability of the market in the two cities under examination also follows the trends of the previous months, with an average resident able to access only 3.6% of the available options in the city of Milan and 6.3% in the Capital. This is the outcome of the monthly Real Estate Market Observatory for Rome and the main city of Milan, compiled by Immobiliare.it Insights, a company within the Immobiliare.it group, as reported by Sole24Ore.

Regarding prices, specifically in Milan, the selling prices have reached an average of €5,270 per square meter, showing a rise of 0.3% compared to the previous month (+5.4% year-on-year). Meanwhile, in Rome, they have settled around €3,336 per sqm (-0.1% in the last month, and also compared to twelve months ago). At the same time, Milan’s rental rates stand at an average of €22.1 per sqm, while those in Rome stop at €15 per sqm. In both cases, there is an increase of approximately half a percentage point compared to the previous month, though the year-on-year growth is more pronounced: +10% in Milan and +5.4% in Rome. The demand for apartments for sale continues to contract in Milan, registering a decline of 7% in July. This is coupled with a reduction in the stock of properties on offer, down by 2.1% during the same period, a clear contradiction to the annual figure. A similar situation can be seen in the capital: stock contracts by 0.7% in July, while demand decreases by 5.9% during the same period. In the rental sector in Milan, there is an accumulation of offered properties in the last month, amounting to +7.9%, and an increase in demand during the same period by +4.5%. In both cases, the positive trend is maintained on an annual basis, with monthly demand even growing at a triple pace compared to the rate observed over the last 12 months. In contrast, the Roman market behaves differently from its Milan counterpart.

Primarily, in the last month, a net reduction of almost 5 percentage points in rental properties on offer was observed. However, demand is moving at double the pace of Milan, with a +9.4% increase in the last month. The most expensive neighborhoods in the two main Italian cities are their respective historic centers: the Lombard capital’s historical center exceeds €10,100 per sqm, while the Roman historical center surpasses €7,100 per sqm. Beyond this largely expected data, the Observatory also reveals the neighborhoods that have appreciated the most over the past year. In the capital, the accolade goes to Termini, Repubblica, which has appreciated by 11.8% in a year (remaining stable on a monthly basis) and reaching an average of €4,459 per sqm. It is followed by Battistini, Torrevecchia, and Appio Claudio, Capannelle, which are close in the range between €3,200 and €3,300 per sqm on average: the first sees sales prices increase by 6.8% in the last year, the second by 6.6%. As for Aventino, San Saba, and Caracalla, apart from being the second most expensive neighborhood in Rome with its €6,278 per sqm on average, it is also the one that has seen prices grow the most in the last month: +1.7%, despite remaining stable compared to a year ago. Turning to Milan, as in the case of Rome, a neighborhood near a train station is once again seeing the main appreciation: Corvetto, Rogoredo appreciated by 10.7% in a year (+1.5% in the month) and reached an average of €3,980 per sqm. Garibaldi, Moscova, Porta Nuova, apart from being the second most expensive neighborhood in the city (and in Italy) at €9,958 per sqm, also holds the same city position for sales price growth: +9.7% compared to July 2022. The third most revalued neighborhood compared to a year ago is once again close to a station, in this case, the Lambrate station: Udine, Lambrate reached €4,187 per sqm after a yearly growth of 9.6%. No surprises for the most expensive neighborhoods in the rental sector: the two historic centers are the priciest areas in this case as well, with nearly €30.2 per sqm for the Center of Milan and €24.2 per sqm for the Roman Historical Center.

In Rome, the neighborhood with the highest rental growth in the year is Aventino, San Saba, Caracalla: its +19.4% (despite stability in the month) brings it to €23.3 per sqm on average, confirming it as the second most expensive neighborhood in the city for rentals. Behind it, we find Trionfale, Monte Mario, and Ottavia (+15% annually), and Pigneto, San Lorenzo, and Casal Bertone at +11.6%. Parioli, Flaminio, on the other hand, is the one that grows the most in the month, reaching €19.7 per sqm (+2.7% in July). Returning to Milan’s real estate market, the area of Bisceglie, Baggio, and Olmi is the most economical, at €15.9 per sqm, but it is also the one that has grown the most compared to a year ago: +21.3%. Also on the podium are Cimiano, Crescenzago, and Adriano (+21.1%), followed by Famagosta and Barona (+15.6%), just ahead of Affori and Bovisa (+15.4%). In the month of July, however, there is an appreciation for rental properties in the Pasteur, Rovereto area: +3.3% (still +13.4% on an annual basis).

Real Estate: Milan 2023’s Booming Rental Market Revealed by Immobiliare.it’s Room Observatory

By Columbus International,18 August 202318 August 2023

626 euros per month is the average for the monthly rent of a single room in Milan in 2023, a stable price (+1%) compared to last year but still the most expensive in Italy. This is what emerges from the latest “Osservatorio sulle Stanze” (Rooms Observatory) by Immobiliare.it. But is this amount the same throughout the city of Milan? The answer is no, and here is the neighborhood-by-neighborhood breakdown of how much you pay for a single room in different areas of Milan. The most expensive areas The Porta Venezia – Centro – Porta Genova triangle represents the gold podium of rentals: those who want to secure a single room in these three prestigious neighborhoods must be prepared to pay more than everyone else. The prices here have reached:

– 871 euros in the Genova, Ticinese area, after an annual increase of 29%
– 769 euros in the Porta Venezia, Indipendenza area, with a +22% compared to 2022
– 758 euros in the Centro area, +10% compared to last year

Where you spend less

However, there are areas where the city offers opportunities for savings compared to the city’s average. It must be said, though, that in no area do you ever spend less than other more populous Italian locations for out-of-town students. Milan, even where you save, remains the most expensive overall. For those who don’t want to give up the city but want to try to spend less than colleagues living in the center, here are the three cheapest zones:

– Napoli, Soderini, where a single room costs an average of 536 euros per month – Zona Forlanini, with 553 euros
– Udine, Lambrate, where the average spending is 567 euros (a figure not far from the average of Abbiategrasso and Cascina Merlata)

Where prices have increased the most and the least If so far we have provided an overview of the costs to consider in this new academic year, it is also important to pay attention to the areas of the city that have appreciated the most in the last 12 months.

Landlords who rent out their apartments, divided into rooms, have seen the value grow the most if the property is located in one of these five areas:

– Genova, Ticinese 871 €
– Maggiolina, Istria 609 €
– Precotto, Turro 605 €
– Porta Venezia, Indipendenza 769 €
– Navigli 715 €

On the other hand, those who have seen the price for a room appreciate less are those in this last ranking:

– Quadronno, Palestro, Guastalla 682 €
– Solari, Washington 637 €
– Napoli, Soderini 536 €
– Forlanini 553 €
– Cenisio, Sarpi, Isola 657 €

Real Estate: Elevating Milan’s Skyline, The Majestic A2A Tower Redefining Urban Elegance. Explore Further News

By Columbus International,7 August 2023

An ambitious architectural project is beginning to take shape in the heart of Milan: the creation of the new A2A Tower. In the coming months, or perhaps as early as the upcoming autumn season, construction will commence on this grand structure, set to redefine the appearance of Porta Romana as it rises impressively over 28 floors, reaching a height of 145 meters.

The task of shaping the tower has been entrusted to the architecture firm led by Antonio Citterio and Patricia Viel. The design will be a symphony of modernity and elegance: an oval-shaped base, enveloped in glass walls, will embrace a total surface area of 37,000 square meters, including the base spaces. The building will undoubtedly be one of the tallest in the city, and its structure will house a variety of functions. The initial twelve floors, for instance, will transform into office spaces, creating a stimulating and innovative work environment. However, at a height of around 60 meters, around the twentieth floor, a genuine suspended garden will emerge, offering an atmosphere of tranquility and nature that blends with the surrounding urban energy.

This green paradise will be accessible from one of its sides, opening its doors to contemplation and recreation. As one ascends towards the sky, an additional eight floors of office spaces will stand, crowned by a striking “belvedere” that will offer breathtaking views of the city to the citizens of Milan and visitors alike. In numerical terms, it is estimated that the tower could accommodate a working community of approximately 1,500 individuals, all integral parts of the company. Yet, the impact of the A2A Tower goes beyond its work-related function. This architectural gem will transform the surrounding urban landscape, a vertical revolution that will shed new light on the entire neighborhood. Surrounded by an ambiance of water and framed by green spaces, the glass structure will enchant onlookers and give rise to a new landscape identity. The inauguration of this magnificent creation appears to be planned in conjunction with the anticipated event of the 2026 Winter Olympic Games.

Despite financial details not yet being disclosed, former A2A CEO Luca Valerio Camerano had suggested in June 2019 that the project would find its financial backing, also offering value-added opportunities for shareholders. An important aspect of the new tower’s construction process involves the rationalization of the energy company’s real estate properties. Seven buildings in Milan, including the current headquarters at Porta Vittoria, will be divested, allowing for the concentration of the 1,500 employees within the spectacular new headquarters. The existing locations will remain intact for those directly involved in essential operations, such as Amsa and the immediate intervention of Unareti.

Unlocking Luxury: The Preferred Choice for Milan’s High-End Homeowners. Source: Nativo/Idealista News

By Columbus International,2 August 2023

Owning a luxury residence in Milan can be a stroke of luck: in these cases, it’s a small treasure to be carefully managed, whether you choose to sell or generate income. According to Nativo, a company specialized in luxury short-term rentals, the latter option is preferred by luxury homeowners in Milan. According to co-founders Sara Lini and Adriano Frigoli, here are the reasons why more and more luxury property owners in Milan prefer renting over selling. According to Nativo’s data (Nativostay.com), over 30% of luxury property owners who approach them are considering both selling and renting, but almost all of them opt for renting after a thorough analysis of the market and economic factors. In short, the key factors that often determine the choice between selling and renting a luxury home in Milan are: inflation growth, difficulty in finding viable alternative investments – both in the real estate and stock markets, and government bonds – rising mortgage rates, and the increasing demand for luxury rentals influenced by events like Brexit or the introduction of a flat tax, as well as more fluid lifestyles that require greater mobility.

The reasons for choosing to rent a luxury home in Milan are diverse:

Protection against inflation: Firstly, the luxury rental sector represents a protected segment within the real estate market. A luxury property is considered a solid asset against inflation and an option that safeguards long-term investment returns.

Difficulty in investing sales proceeds: Currently, there are no convenient and alternative solutions to invest the liquidity generated from selling a luxury property. The instability of the stock market, compounded by geopolitical factors and rising commodity costs, makes residential real estate investment in Milan more profitable compared to other options, such as government bonds. For example, renting a two-bedroom apartment in Milan with an open-ended lease averaging a gross annual yield of 5.5% for the owner, which proves to be more lucrative than government bonds, generating revenue of 3.75%.

Limited supply of luxury properties: Another aspect to consider, for those who temporarily leave Milan but intend to return, is the difficulty in finding a luxury property in the city. Demand consistently exceeds supply, and many properties are owned by families who do not require liquidity, so those who own a beautiful apartment often hold onto it.

Olympic Games effect: Additionally, the Olympic Games effect should not be overlooked. Many believe that prices will continue to rise at least until 2026, which is why they choose to generate income from their assets until the market reaches its peak.

ECB interest rate hikes: Looking at the economic context, the European Central Bank’s tight monetary policy has led to a significant increase in mortgage interest rates. This means that those who purchased a property in the past at lower rates would end up paying much more if they decided to purchase another one, consequently losing the advantage of the previous rate.

Growing rental demand: Other factors influencing the choice to rent instead of selling involve the growing demand for rentals from high-spending foreigners, making this segment particularly lucrative. Many of Nativo’s tenants come to Italy to take advantage of the flat tax, while others arrive after having lived in London for an extended period due to Brexit. In general, it’s becoming increasingly clear that Milan is attracting a great deal of talent, including successful executives and entrepreneurs, which naturally drives strong demand for luxury rental properties.

Greater flexibility: Lastly, changing lifestyles and work patterns make it challenging for property owners to predict where they will live in the future. Flexibility becomes a crucial aspect, and renting offers the opportunity to keep options open for potential future use of the property.