Milan enjoys a great brain-return advantage, which, thanks to the city’s internationality, gathers most of the return preferences among Italian cities
In Rome, the prestige segment continues to show signs of stability and growth, especially in the central and historic areas of the city, with an appeal to clients and investors who can find more affordable prices than in other major European capitals
The most popular locations in Rome and Milan in the luxury real estate sector illustrated in the Market report by Engel & Völkers and Nomisma
Growth in the luxury real estate market continues, particularly in Milan and Rome. “The effects of the ongoing economic and inflationary dynamics have had little impact on the luxury market in the two main Italian cities, which in the second half of 2022 continued to record a favorable economic situation, with rental demand growing strongly and that of buying and selling cooling slightly only in some areas,” explained Luca Dondi, CEO of Nomisma, commenting on the Milan/Rome Market report for the second half of 2022, produced by Engel & Völkers in collaboration with and with the scientific support of Nomisma.
The reasons behind the growth of luxury real estate in Milan and Rome
“Milan enjoys the great advantage of the return of brains, which, thanks to the internationality of the city, gathers most of the return preferences,” explained Roberto Magaglio, license partner of Engel & Völkers Milan, who added that “this is a flow that will not be exhausted this year and that contributes significantly and substantially to the demand for luxury real estate.
Regarding Rome, however, Helio Cordeiro Teixeira, managing director of market center Rome Engel & Völkers said, “The prestige segment continues to show signs of stability and growth, especially in the central and historic areas of the city, with an appeal to clients and investors who can find more affordable prices in Rome than in other major European capitals.”
Milan in the spotlight: here are the top locations for luxury properties
For properties refurbished to new, the report by Engel & Völkers-which recently unveiled its new brand identity- reveals an extensive range at the individual neighborhood level.
At the top of the ranking is definitely the Duomo area, whose average values fall within the range of 8,500-18,500 euros/sqm. In particular, in the Quadrilatero, Brera, and Castello-Foro Buonaparte areas, quotas reach top levels of 20-21 thousand euros/sqm, then fall slightly in the 17-18 thousand euros/sqm area in the San Babila and Cordusio areas.
In the western area, we range from 4,200-4,500 euros/sqm for properties in Gambara – Bande Nere and San Siro to about 10,000 euros/sqm in Sempione – Arco della Pace – Chinatown and Vercelli – Washington. Remaining out of range are City Life listings, between 8,800-15,000 euros/sqm.
In the eastern zone in the Città Studi and Porta Venezia neighborhoods, buying and selling values are between 4,450 and 9,350 euros/sqm.
In the northern area, on the other hand, average prices in the Centrale-Loreto and Isola-Gioia-Maggiolina areas range between 4,900 and 7,150 euros/sqm, with the top average prices in Porta Nuova-XXV Aprile reaching 19,500 euros/sqm. The Garibaldi-Moscova-Arena area also confirms the upward trend with a maximum average price of 12,800 euros/sqm.
Finally, in the southern area, average prices range between 6,500 euros/sqm in Medaglie d’Oro-Lodi and 11,000 euros/sqm in Porta Romana-Crocetta-Quadronno.
Rome in the spotlight: here are the top locations for luxury real estate
In 2022, more than 40 thousand transactions took place on the Rome market, a growth of 3.1% compared to the year before. Among the curiosities, it is worth noting that among foreign investors, who are always interested in prestigious central areas, interest in bare ownership purchases and sales is also increasing.”
Where is the buying demand concentrated? Definitely in Trastevere, Testaccio, Ponte, Borgo, Parione, and Monteverde Vecchio, whose prices are around 5,000 to 10,000 euros/sqm, but there is a market recovery in the Aventino/San Saba area. In the Prati-Vatican area (4,200 – 7,000 euros/sqm), there is a concentration of demand from residents interested in central areas due to the more significant presence of outdoor spaces and the green regions to the historic center.
In the North zone, the most valuable area, including Parioli and Prati, buying and selling values range from 2,700 to 6,9000 euros/sqm. Here, in the second half of 2022, compared with the previous six months, there was a significant increase in demand for purchases from foreign clients from northern Europe.
The west area shows steady prices except for the Monteverde Nuovo area, where prices are rising slightly, thanks to the favorable location and green areas, while demand is growing in the Portuense area. Here buying and selling values are in the 2,700-4,100 euros/sqm range.
Finally, the South zone has felt generalized signs of a slowdown in buying and selling in less valuable areas. Generally, average prices range from 2,300 euros/sqm in the Laurentino area to 4,800 euros/sqm in San Giovanni/Appio Latino and Eur (in the latter area, in particular, foreign demand often concerns the return of brains).
