Known as the fashion and design capital of Europe, Milan is Italy’s business centre and the second largest Italian city after Rome. It is home to famous fashion houses Armani, Prada and Versace along with prestigious universities and cultural events such as opera and ballet, and is surrounded by beautiful countryside.
Economic recovery is creating greater demand for city living in Milan. After decades of moving out to the outskirts of the city, both buyers and renters are returning to live in the city centre. There is also an increasing appetite for multi-family accommodation that includes features more typical of the hospitality sector, such as a reception, carsharing and in-house spas and gyms. Many new such developments and refurbishments with an emphasis on sustainable living are already underway.
Growing demand means that following several years of sluggish performance, the housing market in Milan is now on an upward trend. Growth reached 7% in 2018 showing strong signs of recovery after an average of 0% growth over the previous decade.
There is positive momentum in rental markets too. Rental growth was 1% in 2018 and the number of investors seeing the residential sector as an asset class in which to invest is on the rise, partly driven by the attractive average yield of 5%.
The resurgence of demand for properties in central Milan will be further stimulated by the construction of Line 4, a new underground rapid transit line that will be part of the Milan Metro system when it opens between 2021 and 2023. Served by automatic driverless trains, the new 21 station line will link Linate Airport to San Cristoforo train station.
The value of housing in Milan is already relatively high despite the economic crisis, especially in central locations. The combination of the economic recovery, the growing demand for properties in the city centre and the lack of available stock means the outlook for value growth in Milan remains firmly in positive territory.