This article was translated automatically from Italian.
Nomisma Report: Trends in the Italian Property Market and Focus on Milan
Nomisma Report: Trends in the Italian Property Market and Focus on Milan
Outlook and Opportunities After 9 July 2024
The second Nomisma report, presented on 9 July 2024, offers an in-depth overview of the current dynamics and future forecasts of the Italian property market. The report highlights the challenges and opportunities that characterise the sector, with particular attention to the city of Milan.
Trends in the Italian Property Market
Over the last 18 months, the Italian property market has shown signs of slowing down. Purchase demand has fallen significantly, leading to a reduction in sales of about 8%. This decline has been attributed mainly to the fall in households' purchasing power, rather than to a change in their intentions to buy. The sharp fall in mortgage lending was influenced by the policies of financial institutions, which cut the budgets allocated to mortgages and promoted investments perceived as less risky.
Focus on Milan:
Dynamics and Outlook
Prices and Demand
In Milan, the property market stands out for its resilience and appeal. In June 2024, the average price of residential properties rose by 3.51% compared with the previous year, settling at €5,456 per square metre. Despite a 13.2% decline in sales in the first quarter of 2024, the rental market continues to expand, with a 5.99% increase in the average rental price
Impact of New Infrastructure
The future Linea Metro Rosa will have a significant impact on the outlying areas of Milan. Areas such as Viale Certosa and Ponte Lambro are set to see an increase in prices per square metre thanks to the planned infrastructure improvements. Forecasts indicate growth of 7.8% in sale prices and 8.6% in rents in these areas
Investment Opportunities
Milan continues to attract international buyers thanks to economic opportunities and tax breaks for residents abroad. This influx will help keep demand high and support property prices. The outlying areas, in particular, offer interesting opportunities for buyers thanks to their relative affordability
Outlook for After the Holidays
Forecasts for autumn 2024 indicate continued growth in property prices, especially in the outlying areas that will benefit from new infrastructure developments. The sales market could benefit from improved access to mortgages, with slightly falling interest rates, making buying a home more affordable for many families. The logistics and office sector is showing signs of growth, with high demand for high-quality properties in well-connected areas. This trend could continue in 2024, supported by the economic recovery and the evolving needs of the market.
In short, the Milan property market is expected to be dynamic and to grow moderately, with particular opportunities in the outlying areas and steady interest from foreign investors. Price stability and potential reductions in mortgage interest rates could further stimulate the market over the next six months.
Alessandro Langella
Founder of Pavé, Milan
He knows Milan through years of hands-on market experience, properties visited and neighbourhoods watched as they changed.
