Milan real estate market, apartment prices increase by + 4.1% (on an annual basis). Purchases for investment are back. Four months to close a trade
Milan is increasingly there real estate locomotive of the country. This is also confirmed by the latest edition of the Nomisma bag. At the end of October, prices in the city had risen by 4.1 percent compared to an average of the 13 largest cities in the country of 1.8 percent. The institute divides the urban centers into four macro-areas and confirms a trend underway since the pandemic broke out to benefit from theincrease in prices is above all the periphery, which is +4.8 percent, compared to 4.3 per cent of the semi-center, 3.5 per cent of the city center and 3.4 per cent of the prestigious areas. The increase in rents was more reduced, to +2.1 per cent in the city average.
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Sales data
Compared to the first half of 2020 sales increased by 31 percent, a fact that obviously has very little significance since last year from March to May in practice it was not possible to stipulate deeds. The transaction data are in line with those, more correctly buyable, of 2019, while the national trend is a net increase, but it must be remembered that in the first part of 2019 Milan had boom numbers while the Italian market was static.
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The return on investment
An interesting fact is that we have returned to investing: a quarter of the transactions according to Nomisma would in fact concern the purchase aimed at earning a rental income (presumably to tourists and students) from homes. In 64 per cent of cases, the purchase concerns an apartment in which to go directly to live, the remaining 11 per cent is for accommodation to be kept available. In 80 percent, the purchase takes place with the support of a bank loan and this in perspective could be a factor of weakness if inflation turns out to be structural and the cost of money consequently goes to increase.
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The real estate market
The average price of used homes in Milan is 3,152 euros per square meter, compared to an average of 1,845 euros in large cities, the salaries, at least of employees who do not hold top positions, are however almost the same everywhere and to buy in the city, on average, 50 per cent more is financed. than in the rest of Italy. A rate hike of only two points (today inflation exceeds 3% after having remained substantially at zero for years) combined with further price increases would effectively cut a large portion of potential buyers out of the Milanese market. Who today, perhaps for fear of the future, buy quickly. Indeed Nomisma notes that in the city it sells in four months on average (three in the center, five in the suburbs) against a national average of 5.5 months. On the other hand, only two months are needed to close a lease.
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Forecasts for 2022
The forecasts collected by Nomisma from the operators envisage stability of transactions and a further increase in prices for the next six months. Rents are also on the rise, destined to return to pre-pandemic levels.
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November 24, 2021 (change November 24, 2021 | 12:14)
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