Waterfront real estate: prices have increased by 40 % over the past five years.

In the second half of 2022, at least 18.2% of all real estate transactions were for investment purposes. This is a marginal increase from the same period in 2021, when the investment rate was 16.5%.

The real estate market continues to thrive. The main factor encouraging savers to invest in bricks and mortar is high inflation. The real estate market has always been considered a great way to invest capital. Investments in this area are now benefiting from the return of purchases intended for use in tourist destinations.

Milan continues to be one of Italy's most expensive cities. According to the latest study conducted by Immobiliare.it, in the capital of Lombardy the price per square meter is about 5,271 euros. Over the year, prices rose by 3.3%. Rome, on the other hand, showed a decrease of 0.2%, with an average price of around 3,336 euros per square meter. In Milan, prices rose by 43.2%, according to data from Tecnocasa.

When looking at the data for the main Italian metropolitan areas, it becomes apparent that the major cities in southern Italy are also experiencing significant price increases, which in some cases can rival Milan's.

Milan real estate market

Let's touch on the topic of real estate in Milan. According to analysis by Ufficio Studi Tecnocasa, real estate prices in Milan have increased by 43.2% over the past five years, while other major cities have seen an average increase of 8.8%. In this way, Milan has completely pulled away from other Italian cities.

The upward trend in prices has predominantly affected suburban areas, where an increase of 50.3% has been observed. The center and semi-medium zone of Milan also saw high prices, leading to a shift in demand to the suburbs.

According to Ufficio Studi Tecnocasa, the most sought-after areas for price increases were San Siro (+64.7%) and San Siro Capecelatro (76.5%), where the presence of the metro line a few years ago has improved connectivity with the rest of the city, especially with the two key business centers Citylife and Porta Nuova. Lower prices compared to semi-rural neighborhoods have attracted demand among those with limited financial means.

The rise in prices is also seen in southern Italy, as in Milan. For example, Naples is the tenth most expensive city to buy real estate, where the price per square meter is 2,771 euros. That's an increase of 3% from a year ago. The supply of real estate on the market decreased (-8.5%), while demand at the same time also fell (-15.7%). According to the analysis, Bari shows a more significant price increase compared to Naples, +4.4% over the year. Bari has an average price of around 2,000 euros per square meter and a decrease in real estate supply (-1.4%) and demand (-1.5%). The cheapest city of the three reviewed is Palermo with a price of around 1,360 euros per square meter, but it also shows the highest price growth, +5.3% in the last twelve months. The supply of real estate in Palermo has decreased (-4%), but demand remains positive (+3.3% over the last twelve months).