Real estate investment in Milan
Buying a house in Milan, even in a historical period like this, made of uncertainties in the most varied sectors, remains an excellent investment choice. In particular, thanks to the trend of short-term rentals, investing in real estate guarantees an average net safe return of 5-7%.
The Lombard capital ranks among the liveliest and constantly increasing for population density, European commercial positioning. According to recent real estate studies, by 2033, Milan is set to become the European city with the highest investment revenue in brick.
The real estate market in Milan closes 2021 with strong growth, with an estimated total of 26,500 residential sales: it grows by 22.5% compared to 2020 and 4.3% compared to 2019. As for residential sales in 2022, there were 28,595 or + 6.1% compared to 2021.
In percentage terms, house prices, in the period between 2017 and 2022, increased by 43.2%. To date, March 2023, the average price in Milan for used cars in medium / good condition, stands at € 4.000 / sqm with considerable fluctuations, in certain areas, up to € 10.000 / 12.000 per square meter.
Milan is in Italy, by far the city with the highest rents; in fact, demand exceeds supply, with a consequent increase in the price per square meter. Obviously this involves a rush to sell real estate, especially by the owners of those neighborhoods where the purchase is still advantageous compared to the area of location. In practice, the districts in strong growth and destined to enter in all respects in the “Milanese trend”, allow investors advantageous purchases and are willing to higher valuations in order to grab the properties.
The time window between 2022 and 2030 is very interesting for all those who intend to invest in real estate; for those who have capital, but not entrepreneurial familiarity, it becomes essential to rely on capable and prepared consultants from a financial point of view.
Residential or commercial investments?
To answer this question, the investor’s need must be carefully assessed. From a purely economic point of view and for continuity over time, residential (especially in university areas), offers a good profit margin and is especially suitable for small / medium entrepreneurs. From the point of view of the versatility of the sector, the commercial is more suitable for large entrepreneurs, especially if investments are induced towards booming commercial activities, it should be emphasized, however, that the complexity of commercial management is greater than residential.
Given these factors, our suggestion is to turn to residential. A secure and profitable source of income over time. For an apartment of € 350,000, you can achieve between 1.200 and 1.300 per month. Choosing where to invest is crucial.
The 9 areas of greatest interest are:
- The stops of the new metro line M4 (blue)
- University areas, in particular Città Studi
- Viale Piceno
- Viale Corsica
- Farini area
- Tre Torri/Portello District
- North Milan
- Santa Giulia
- Nolo (Loreto)
In conclusion, investing in real estate is safer and more profitable than, for example, financial investments. Milan offers many possibilities, with an ever-increasing number of people looking for more or less short rentals. The redevelopment process of many areas of Milan allows interesting investments.
Gaiezza Real Estate, leader in sales throughout the Milan area and with the precious partnership with Sevan Holding, offers professionalism and financial expertise to both owners and investors.
Article written by: Mariateresa Confalonieri