Property in Italy: Milan leads the recovery
Crisis? What crisis? Milan leads the world in fashion – now it could be leading the recovery in the property in Italy market.
Prices across the city have risen by an average of 2 per cent in the first three months of 2009, following a 2.1 per cent decrease in 2008. Buying a property in Milan now costs an average €3,600 per sq m, up €72 on last December.
Ten of the city’s 18 districts have registered an increase in property values, with the most impressive rise coming in Forlanini, up 5.6 per cent, according to a study of 2,300 properties for sale the city.
Of the towns outside the city but still within Milan province (think of it as “Greater Milan”), Sesto San Giovanni is now the most expensive, overtaking Monza, famous as a venue for Formula 1 motor racing, research by a leading Italian property portal reveals.
In Sesto San Giovanni the typical property costs €2,619 per sq m, down by 1.5 per cent. But it is now top because Monza has seen a sharp decline in asking prices over the first quarter of 2009, down 4.5per cent to €2,610 per sq m.
In Forlanini, which has seen the largest percentage rise, properties cost an average €3,338 per sq m, followed by the Fiera - De Angeli zone (up 2.9 per cent to €4,666 per sq m); Vigentino – Chiaravalle (2.8 per cent to €3,169 per sq m); Baggio (2.6 per cent, €2,711 per sq m); Garibaldi - Porta Venezia (2.1 per cent, €4,796 per sq m).
Garibaldi - Porta Venezia is also the most expensive district in Milan except for the historic centre, where the low availability of properties on the market renders any analysis difficult, although they rarely change hands for less than €6,000 per sq m.
Although more contained, there has been a rise in prices in Città Studi - Lambrate (up two per cent to €3,437 per sq m), Corvetto - Rogoredo (1. 7per cent; €2,976 per sq mq) and Navigli - Bocconi (0.9 per cent; €4,628 per sq m). Price rises have also been observed in Brugherio (up 1.8per cent at € 2,533 per sq m) and Pioltello (a 1.7per cent rise to €1,990 per sq m).
No significant price changes have been observed in the towns of Cinisello Balsamo (up 0.8 per cent at €2,326 per sq m) and Cologno Monzese (up 0.2 per cent; €2,320 per sq m),
In some areas of the city, however, the downward trend in prices continues, in particular Famagusta - Barona (down 2.8per cent; €3,137); Certosa (down 2.1 per cent to €2,990); Greco -Turro (a 2.1per cent drop to €2,993) and Comasina - Bicocca (down 2per cent to €2,791).
The most affordable area is Vialba - Gallaratese, where prices have declined by 2.5 per cent and the average property comes with a €2,526 per sq m price tag.
Paolo Zanetti of idealista.it, which conducted the research, said the trends were due to a “greater ease of negotiating price and interest rates which are at historical lows…these have certainly increased the demand for homes.”
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