09 May From London to Milan: How Bankers are Reshaping the Real Estate Landscape in Italy
Over the past few years, we have seen a surge in demand for property in Milan, thanks in no small part to the influx of foreign buyers. In this article, I will explore how London bankers represent one trend that’s reshaping the real estate landscape in Milan, and why this unique city is such an intersting place to invest in property.
Milan has long been a popular destination for tourists and business travellers alike. It is one of the most vibrant and stylish cities in Europe, with a rich cultural heritage and a thriving economy. The city is home to some of the world’s most famous fashion designers, and the centre of world fashion week, as well as Salone del Mobile, the internationally renown global event for the design and furnishings sector, as well as a burgeoning startup scene. (read more about Milan in our Lombardy post )
Factors Contributing to Milan’s Growing Real Estate Market
There are several factors contributing to Milan’s growing real estate market. Traditionally Milan is the financial and industrial capital of Italy, with a highly skilled workforce and a thriving business community. There has long been a continuing domestic migration of workers from the south to the north, in search of opportunity and being Italy’s largest local economy Milan has continually attracted the greatest amount of foreign investment to the country.
In the run-up to Milan hosting the World Expo in 2015, city leaders and real estate firms transformed the run-down Porta Nuova area and the old Milan fairgrounds into sleek contemporary landmarks, triggering the development of new luxury residential, commercial and business districts.
This northern city has enjoyed something of a renaissance in recent years thanks to the completion of several big urban revitalization projects
Milan is transforming the old expo 2015 site with the MIND project (Milan Innovation district) a mini city set to create modern urban spaces and house significant and modern scientific institutions in life-sciences, biotech, agri-food and more.
Thousands of foreigners and Italian nationals have relocated to the country since the government started granting generous tax breaks in 2017 to lure new arrivals. That has helped interest and investment in property by new permanent residents, especially as the city has become a popular landing spot for finance workers leaving London in the wake of Brexit.
Milan still holds its status as a significant fashion and cultural hubs and the city is home to some of Italy’s most famous landmarks, including the Duomo di Milano and the Teatro alla Scala. This has made it a popular destination for tourists, who are often attracted to the city’s cultural heritage and vibrant lifestyle.
The Role of London Bankers in Reshaping Milan’s Real Estate Market
London bankers have played a significant role in reshaping Milan’s real estate market in recent years.
In the wake of Brexit, some of the world’s biggest banks have been under pressure to move traders out of the UK and into continental Europe. Bloomberg recently reported that while Italian banks such as UniCredit SpA and Mediobanca SpA were the first to repatriate employees to Milan, their international counterparts are now following suit. Goldman Sachs is shifting traders from London to the northern Italian city, and investment firms Eisler Capital UK, Certares and Andera Partners opened shops in town in the last few years.
One way in which London bankers have impacted the Milan real estate market is by investing in luxury properties. Many of these properties were previously overlooked by local buyers, but are now highly sought after by foreign investors. This has led to a surge in associated development of high-end properties, and with an uplifting impact on prices across the board.
The value of luxury properties in Milan rose 25% to €5.8 billion in the six months ending in November 2022, according to real estate website immobiliare.it.
Milan’s Most Popular Neighborhoods for Homebuyers
Milan is a city of contrasts, with a wide range of different neighborhoods to choose from. Some of the more popular and traditional neighborhoods include Brera, Navigli, and Porta Romana. These neighbourhoods are known for their beautiful architecture, vibrant nightlife, and excellent transport links. In recent years regeneration projects are transforming urban areas and created completely new spaces like the Porta Nuova, Porta Garibaldi and isola quarters, the Prada Foundation area south of Milan or the developing NOM district North of Milan.
Brera is an elegant highly sought-after neighborhood. It is located in the heart of the city, and is home to some of Milan’s most fashionable boutiques and restaurants. It is also known for its stunning architecture, with many of the buildings dating back to the 18th century.
The Future of Milan’s Real Estate Market
The future of Milan’s real estate market looks bright, and the city is expected to continue to grow and develop, positioning Milan as a rare bright spot in global real estate.
Large proposed developments include the Porta Romana railway yard masterplan, essentially a new city district, and home to the 2026 winter olympics athletes village and new central park, the project will add around 1000 student homes and new apartment complexes are arriving nearby. (see more about Porta Romana railway project)
There’s also the rejuvenation of Piazzale Loreto into an inclusive sustainable space connecting surrounding neighborhoods with 24,000 qm of pedestrian space planned, with construction set to start in 2023. (more details https://bit.ly/PiazzLoreto )
Milan’s real estate market has seen significant growth in recent years, with prices rising across the board. According to recent data, the average price of a property in Milan is around €4,000 per square metre. However, this varies depending on the neighbourhood, with more and more areas these days commanding more than €10,000 per square metre.
One area that is expected to see significant growth is the luxury property market. As more financial sector workers and foreign investors enter the market, we are likely to see a growing demand for high-end properties.
Looking ahead, it is expected that prices will continue to rise due to a growing demand for property, as well as a limited supply of new homes. This makes Milan an attractive market for those looking to invest in property, as it offers the potential for significant returns.
Why Milan is a Great Place to Invest in Real Estate
It is a vibrant and stylish city, with a strong economy and a thriving business community. This has led to a growing demand for property, particularly in the city centre. With the help of London bankers, the real estate market in Milan is becoming increasingly competitive, making it a potentially attractive investment opportunity.
If you are planning and dreaming about buying property in Italy this year, get in contact with us today. We can help you find the perfect property in Milan.