A Comprehensive Examination of Milan’s Housing Market in 2025

Milan’s real estate market stands as an exceptional case within Italy’s property landscape, characterized by pronounced price variations across its diverse neighborhoods. For prospective buyers and renters in Lombardy’s capital, grasping these market dynamics is crucial for informed decision-making. Below, we present a detailed market analysis based on the latest intelligence from Immobiliare.it Insights.

The Financial Realities of Homeownership

According to Immobiliare.it Insights’ January 2024 market report, sustainable homeownership of a two-bedroom apartment in Milan—without facing excessive mortgage burden—requires an annual income of approximately €52,000, translating to roughly €4,300 net monthly. This threshold exceeds twice the average Milanese salary, underscoring the widening disconnect between earning capacity and real estate valuations.

Purchase Market: Neighborhood Price Stratification

April 2025 data reveals a pronounced price hierarchy across Milan’s districts. The historic Centro maintains its premium position with property values surpassing €11,000 per square meter.

Milan’s Premium Districts

Following the Centro, these upscale neighborhoods command the highest prices:

• Garibaldi, Moscova, and Porta Nuova approaching €9,900/sqm
• Arco della Pace, Arena, and Pagano exceeding €9,500/sqm
• Quadronno, Palestro, Guastalla and the Genova, Ticinese area, both commanding over €8,000/sqm

Investment-Friendly Zones

At the market’s more accessible end, areas like Bisceglie, Baggio, and Olmi offer properties at approximately €3,000 per square meter. Other districts with values under €4,000/sqm include:

• Ponte Lambro and Santa Giulia
• Cimiano, Crescenzago, and Adriano
• Forlanini
• Affori and Bovisa
• Bicocca and Niguarda

Rental Market Dynamics

Milan’s rental sector mirrors the geographical value distribution seen in the sales market. Prime locations including Centro, Garibaldi, Moscova, Porta Nuova, Arco della Pace, Arena, Pagano, Porta Venezia, and Indipendenza command rental rates at or above €30/sqm.

Notably, unlike the relatively stable purchase market, rental prices have experienced a downward adjustment across most Milanese neighborhoods over the past 12 months. Nevertheless, even in Milan’s most affordable districts, rental rates remain substantially above Italy’s national average of €14/sqm.

Source: Immobiliare.it Insights, data current as of April 2025