real estate

Luxury Real Estate Market in Italy: Trends and Prices

By Columbus International,17 July 2024

The luxury real estate landscape in Italy shows a significant concentration in major cities, with Milan and Rome at the forefront. According to a recent analysis by Immobiliare.it, these two metropolises account for over a quarter of the country’s high-end property offerings.

Milan emerges as the undisputed leader, with about 16% of the national luxury stock, a trend that has been growing in recent years. Rome follows with nearly 11%, but shows signs of contraction. Florence, while ranking third, represents only 3% of the total offer.

At the regional level, Lombardy and Tuscany dominate the market, with 29% and 22.4% of high-end offerings respectively. Lazio ranks third with 14.8%.

Tourist destinations play a key role in the luxury segment. Como has seen an increase in offerings, while destinations like Forte dei Marmi have experienced a decline.

In terms of prices, Portofino stands out as the most expensive municipality, with an average of 19,074 euros/sqm. It’s followed by Villasimius in Sardinia and Capri. Tourist destinations generally surpass large urban centers in terms of cost per square meter.

Among regions, Valle d’Aosta leads the ranking with average prices of 9,173 euros/sqm, followed by Sardinia and Campania. Lombardy, despite its strong presence of luxury properties, ranks only fifth in terms of average prices.

This analysis highlights a dynamic and geographically diverse luxury market, with a clear preference for coastal and tourist locations in terms of property valuations.

Source: Monitor Immobiliare

Aman New York Penthouse Acquired by Developer Vladislav Doronin for $135 Million (Source: WSJ)

By Columbus International,17 July 2024

In an unexpected turn of events, Russian-born billionaire Vladislav Doronin has purchased the crown jewel of his own development, the penthouse at Aman New York, for $135 million. This revelation comes five years after Doronin initially claimed an Asian buyer would acquire the property for $180 million.

The luxurious penthouse, occupying the top five floors of the historic Crown Building, boasts approximately 13,236 square feet of interior space and an additional 4,462 square feet of outdoor areas. Featuring seven bedrooms, the unit was sold in unfinished condition, allowing for customization by its new owner.

Doronin’s OKO Group spearheaded the conversion of the 1920s Crown Building, transforming its upper floors into 22 exclusive condominium units. The project, which began sales in 2018 and completed in 2022, has now sold out entirely. Notable transactions include a 24th-floor residence closing for $61.58 million in February and a 20th-floor unit selling for $75.8 million in 2022.

At 61, Doronin already possesses an impressive real estate portfolio, including homes in Miami Beach, London, Ibiza, and a Zaha Hadid-designed residence near Moscow. In 2019, he expressed interest in acquiring a unit at Aman New York, citing a desire for amenities like a fireplace and terrace that his Time Warner Center apartment lacked.

While it’s not uncommon for developers to invest in their own projects, Doronin’s acquisition stands out for its scale and price tag. Sources familiar with the deal indicate that an earlier agreement with an Asian buyer for a fully built-out unit fell through, explaining the difference between the initial $180 million figure and the final $135 million sale price for the raw space.

Doronin acknowledged in 2019 that he was entering a saturated market for ultra-luxury condos, particularly along Manhattan’s Billionaires’ Row. However, he remained confident in the project’s unique appeal, stating his hope that it would “fly above the clouds” in New York’s competitive real estate landscape.

The developer’s bold move reflects his belief in the project’s value, echoing his 2019 statement: “If you don’t take a risk, you don’t drink champagne.”

As of now, neither Doronin nor Aman representatives have responded to requests for comment on this significant transaction.

Source: WSJ

Photo via Aman New York

Royal Acquisition: King Charles III Expands Commonwealth Real Estate Portfolio with Manhattan Luxury Condo

By Columbus International,12 July 2024

In a move that blends royal prestige with prime New York real estate, King Charles III has reportedly acquired a luxurious condominium in one of Manhattan’s most coveted addresses. According to recent filings with city finance records, a unit in the landmark Steinway Hall portion of 111 W. 57th St. on Billionaires’ Row has been purchased for $6.63 million, with the buyer listed as “His Majesty the King in Right of Canada, Represented by the Minister of Foreign Affairs.”

The acquisition, first reported by The Real Deal and Crain’s, marks the final sale in the historic building and adds a touch of royal flair to the already star-studded Billionaires’ Row. The property, unit 11A, boasts three bedrooms, 4.5 bathrooms, and spans an impressive 3,601 square feet.

While the exact purpose of the property remains unclear, with the deed mentioning Canada in what appears to be a purchase for the Commonwealth nation, the acquisition underscores the continued appeal of New York’s luxury real estate market to high-net-worth individuals and sovereign entities alike.

The unit’s features align with the expectations of ultra-luxury real estate:

An elegant foyer with stone floors
Spacious living and dining areas
A gourmet kitchen outfitted with Cristallo Gold quartzite countertops and Gaggenau appliances
A primary bedroom with an expansive walk-in closet and a marble-clad bathroom featuring a copper soaking tub
Two additional en-suite bedrooms
A study with its own bathroom

Residents of 111 W. 57th St. enjoy world-class amenities, including:

An 82-foot swimming pool with private cabanas
Sauna and treatment rooms
A state-of-the-art fitness center
Private dining facilities with a chef’s kitchen
A residents’ lounge with a terrace

This royal investment comes as the ultra-luxury real estate market continues to demonstrate resilience, even in the face of economic uncertainties. The property’s location on Billionaires’ Row, known for its concentration of super-tall, super-luxurious residential towers, further cements its status as a blue-chip asset.

As of publication, Buckingham Palace has not responded to requests for comment on the acquisition or its intended use. The involvement of Robert McCubbing, senior trade commissioner and director of trade and investment at the Canadian consulate in New York, who signed the deed on behalf of King Charles, adds an intriguing diplomatic dimension to the transaction.

This high-profile purchase not only highlights the enduring allure of Manhattan’s luxury real estate but also raises interesting questions about the strategic expansion of royal and Commonwealth property holdings in key global financial centers.

Source: The New York Post
Photo via Optimist Consulting

Italy, Real Estate Market Evolution: A New Era of Opportunities for Buyers

By Columbus International,11 July 2024

The real estate sector is undergoing a significant transformation, ushering in a new era of opportunities for prospective homeowners and investors alike. Recent data from the Italian Revenue Agency reveals a market rebalancing that is fostering greater price flexibility and buyer-friendly conditions.

Fabiana Megliola, head of the Tecnocasa Group Research Office, reports an increase in the average discount to 8.3%, marking a shift from the recent period of intense market activity to a more reflective phase. This transition is creating a fertile ground for buyers to negotiate more favorable terms and secure better value for their investments.

A closer look at different property categories unveils intriguing market dynamics:

Used Properties: With an average discount of 8.5%, these offer the most room for negotiation. This presents an excellent opportunity for buyers to acquire properties at competitive prices and invest in custom renovations, potentially increasing long-term value.
Renovated Homes: Offering a 7.5% discount, these properties strike a balance between move-in readiness and value for money.
New Constructions: At a 4.5% discount, these remain attractive for those seeking modern, ready-to-use living spaces with minimal immediate maintenance needs.

Investors stand to benefit significantly in the current market, with discounts of up to 12% on investment properties. This trend could stimulate the rental market and provide more housing options in urban areas.

The market is also becoming more attuned to diverse buyer preferences. Ground floor apartments now come with more substantial discounts (8.5%), catering to those prioritizing accessibility or outdoor space. Top floor units, with a 7.7% discount, continue to appeal to buyers seeking views or added privacy.

While sales have slowed in the first quarter of 2024, this should be viewed as a market normalization rather than a downturn. This cooling period allows buyers more time to conduct due diligence, evaluate multiple options, and negotiate optimal terms.

In conclusion, the Italian real estate market is evolving towards a more balanced and sustainable model. The current landscape offers a unique confluence of factors – price flexibility, diverse property options, and a buyer-friendly environment – making it an opportune time for both personal home purchases and strategic property investments. As the market continues to adapt, it promises to better align with the changing needs and preferences of a new generation of property owners and investors.

Source: Il Sole 24 Ore

New York City’s Multifamily Market Shows Signs of Recovery

By Columbus International,9 July 2024

Despite persistently high interest rates, New York City’s multifamily real estate market is experiencing a resurgence. Developers and investors are regaining confidence in the city’s political landscape, leading to a notable increase in transaction activity.

After a significant drop in late 2023 and early 2024, multifamily development site transactions across the five boroughs have rebounded. June 2024 saw a particularly strong wave of activity, with multifamily property sales reaching approximately $2.6 billion for the second quarter. This figure represents a threefold increase from the first quarter of 2024, according to Ariel Property Advisors.

The market’s revival can be attributed to two key political developments: Albany’s passage of a new housing deal in April and the progress of Mayor Eric Adams’ City of Yes plan. These initiatives have bolstered investor confidence and stimulated deal volume for both development sites and existing buildings.

Daniel Ridloff, managing director for real estate credit at Scale Lending, noted, “There’s a plethora of opportunities in many different New York City submarkets that are now looking for financing. All these projects that were shelved are now off the shelf.”

The multifamily market’s recent history reveals a volatile trajectory. In the second quarter of 2023, multifamily sales in New York City totaled $3.1 billion. This figure plummeted to $646 million in Q4 2023 before slightly recovering to $858 million in Q1 2024. The recent surge in activity, including notable deals like Breaking Ground’s $172 million Upper East Side acquisition, has driven the quarterly volume up by approximately 201%.

Helen Hwang, head of institutional investment sales at Meridian Capital Group, highlighted the impact of recent legislative changes, particularly regarding Good Cause Eviction. She explained, “Investors now understand how to underwrite deals,” due to increased clarity on the issue.

Two factors are driving renewed interest in development site deals: an extension of the expired 421-a tax break through 2031 for previously approved projects, and the introduction of the 485-x program as a successor to 421-a.

Despite these positive developments, challenges remain. Permit filings for new apartment units have continued to decline, with only 36 multifamily building permits filed in May 2024. However, Justin Pelsinger, chief operating officer at Charney Cos., sees potential in sites with 421-a extensions, noting an increase in broker activity for these properties.

As New York City’s multifamily market shows signs of recovery, industry players are cautiously optimistic about future growth and development opportunities in the sector.

Source: Bisnow

Manhattan Office Market Shows Signs of Recovery as Worker Return Gains Momentum

By Columbus International,1 July 2024

In a promising turn for New York City’s commercial real estate sector, recent data suggests that the Manhattan office market is gradually regaining its pre-pandemic vigor. According to an analysis by the Real Estate Board of New York (REBNY), office “visitations” in May reached 74% of 2019 levels, marking a notable improvement from 70% in the same month last year.

This upward trend in office occupancy offers a glimmer of hope for property owners and investors who have grappled with the challenges posed by remote work policies in the wake of the COVID-19 pandemic. The data, derived from Placer.ai location information, encompasses visits to 350 office buildings, tracked through cellphone records, and includes retail traffic within these properties.

While the May figure showed a slight dip from April’s 75% due to Memorial Day weekend travel, analysts believe the overall trajectory remains positive. Keith DeCoster, REBNY’s director of market data and policy, notes that excluding the holiday weekend, May’s numbers would have surpassed those of April.

Key Takeaways:

Manhattan office visitations in May 2024 reached 74% of pre-pandemic levels.
Year-over-year improvement from 70% in May 2023 indicates steady recovery.
Data reflects both office worker return and retail traffic in office buildings.

Looking ahead, industry experts are cautiously optimistic but remain vigilant. “We will watch closely to see if visitation rates increase, hold steady or decline during the summer in line with historic behavior,” DeCoster adds.

As the New York office market continues to evolve, stakeholders will be keenly observing these trends. The gradual return to office spaces could have far-reaching implications for the city’s economy, from local businesses that rely on office worker foot traffic to the valuation of commercial real estate assets.

For investors and business leaders, this data provides valuable insights into the changing dynamics of urban work environments and may inform strategic decisions regarding office space utilization and real estate investments in the post-pandemic era.

Real estate investments in Milan. An in-depth market analysis and numerous tips from Corriere della Sera

By Columbus International,27 June 202427 June 2024

In an ever-evolving real estate market, Milan continues to be one of the most attractive locations for investors. A recent study reveals that about 20% of real estate transactions in the Lombard capital are aimed at generating income. But how truly profitable is investing in Milan’s brick and mortar? Il Corriere della Sera has conducted a detailed analysis to shed light on this trend.

Comparing Returns: Real Estate vs. Government Bonds

To assess the actual profitability of real estate investments, we compared Milan’s rental yields with those of 8-year Italian Government Bonds (BTPs), currently at 3.2% net. Our analysis is based on standard 8-year free-market rental contracts, assuming a reliable tenant and regular payments.

The Milan Landscape: Data and Figures

Based on data provided by immobiliare.it, we examined a typical 70 m² apartment:

Average purchase price: €378,000
Monthly rent: €1,631
Gross yield: 5.17%
Net yield: 3.36%

It’s important to note that the net yield, considering taxes and expenses, is only slightly higher than that of BTPs, but carries significantly greater risks.

The Geography of Returns

Our research highlighted considerable disparities between different areas of Milan:

Historic center: 2.3% net yield
Premium areas (> €350,000 for 70 m²): yields lower than BTPs
Peripheral areas like Baggio and Ponte Lambro: yields up to 4.6% net

Milan’s Hinterland: An Interesting Alternative?

Extending the analysis to the province, surprising data emerges:

Average yield: 6.8% gross, 4.4% net
Top 3 for monthly rents: Gorgonzola (€1,156), Vimodrone (€1,084), Segrate (€1,075)
Municipalities with the best yields: Turibigo, Truccazzano, Tribiano (> 6% net)

These data suggest that the hinterland could offer more profitable investment opportunities compared to the city center.

Short-Term Rentals: The New Frontier?

The short-term rental phenomenon is gaining ground, promising higher gross returns. However, management costs, taxes, and platform commissions significantly erode margins. The profitability of this model seems to be limited mainly to specific areas of Milan.

Conclusions for Investors

Real estate investment in Milan can still offer interesting returns, but it requires careful risk assessment and deep knowledge of the local market. Investors should consider:

Location as a key factor for profitability
The potential for capital appreciation in developing areas
Management and maintenance costs, especially for short-term rentals
The financial stability of tenants for long-term rentals

In a market characterized by high prices and compressed yields, due diligence and a well-thought-out strategy are more crucial than ever for real estate investors in Milan.

Source: Corriere della Sera

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

By Columbus International,24 June 20249 November 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

Catherine Zeta-Jones and Michael Douglas saying goodbye to ritzy $12M New York estate

By Columbus International,21 June 2024

Hollywood A-listers Catherine Zeta-Jones and Michael Douglas are waving goodbye to their posh Hudson River estate, slapping a cool $12 million price tag on their Westchester County palace.

Nestled in the ritzy village of Irvington, a mere 20 miles from the hustle and bustle of Manhattan, this gated oasis sprawls over a luxurious 12 acres. The stunning property, snatched up by Zeta-Jones for $4.5 million in 2019, has seen its fair share of star-studded soirées, including a recent campaign bash for President Biden, according to the Wall Street Journal, which first reported on the listing.

The “Wednesday” star, 54, reflected on their time in the mansion with fondness. “When I purchased our Irvington home I knew our family would share many happy times here, and we have!” she told the Journal, adding that with both of their kids now having flown the coop, the timing feels “right” for a sale. “Michael and I plan to spend more time in Bermuda and Europe,” she revealed, citing work commitments pulling them overseas.

The couple has a home in Bermuda that has been listed for sale in the past. Made up of eight bedrooms and 12 baths, their upstate estate is steeped in history, boasting 130 feet of prime river frontage once owned by Charles Lewis Tiffany of Tiffany & Co. fame, as well as the Matthiessen sugar dynasty. The current Georgian-style stunner, dating back to the 1920s, spans a whopping 12,000 square feet with grand columns and an elegant brick-and-stone façade. A 100-foot terrace offers idyllic river views. Inside, the splendor continues with a two-story, oak-paneled library, an indoor pool, and a kitchenette on the lower level that opens to a picturesque terrace. The power couple has tastefully updated the mansion while preserving its original charm, blending formal and casual spaces seamlessly.

“There’s a blend of formal and informal rooms,” listing agent David Turner of Compass added. “There’s a family room next to the kitchen, which many of these old mansions don’t have.” The estate is a stone’s throw from Irvington’s charming main street, bustling with shops and restaurants and offering a quick train ride to Manhattan. “Longmeadow is a spectacular property — a true Hudson River estate. The owner has done a masterful job in renovating the house in a cool, comfortable and modern aesthetic that preserves its original grandeur and integrity,” Turner told The Post.

Five of the bedrooms come with ensuite bathrooms. The Oscar-winning duo, who previously resided in nearby Bedford, have a knack for lucrative real estate flips. Zeta-Jones sold their Bedford home for a staggering $20.5 million after buying it for $11.25 million. Douglas, meanwhile, once listed their Central Park West pad for $21.5 million.

Vesta Expands To Portofino And Pietrasanta As Valuation Hits $50 Million

By Columbus International,19 June 2024

Vesta, the restaurant brand owned by Triple Sea Food Holding (Tsf), is opening two new locations this summer in the upscale seaside towns of Portofino and Marina di Pietrasanta.

The moves come as the holding company, which is partly owned by Leonardo Maria Del Vecchio’s Lmdv Capital, has seen its valuation recently estimated at around $50 million by one of the Big Four accounting firms. The new Vesta Portofino will be located inside Le Carillon beach club on the picturesque Paraggi Bay, which was taken over creatively this year by Dolce&Gabbana to rebrand as Le Carillon Dolce&Gabbana Resort. In Marina di Pietrasanta, Vesta has taken over the entire Franco Mare beach club and will offer 53 private cabanas with dedicated menus alongside the restaurant, as well as an ice bath for fresh catches and a Basque-style grill. The dual openings mark the fifth and sixth locations for the rapidly expanding Tsf Holding in under two years. They join the original Vesta in Milan’s Brera district along with the company’s Trattoria del Ciumbia and Casa Fiori Chiari restaurants in the same neighborhood.

“The results and growth prospects are so solid that the valuation of Tsf, conducted by one of the ‘Big Four’ global consulting firms, was recently estimated in the range of €45 million ($50 million),” said Davide Ciancio, CEO and co-founder. “With the new 2024 openings we’ll cross the threshold of 250 employees and look ahead confidently to new projects in 2025 across all three of our brands.”

The premium seaside expansions underscore the soaring ambitions of the upstart Milan hospitality group as it rides a wave of demand for high-end dining experiences in Italy’s most prestigious locales. With a valuation typically reserved for tech unicorns, Tsf is aiming to quickly become a dominant national player in the country’s restaurant scene.

Source: Monitor Immobiliare
Photo: Instagram