"The center of the real estate market boom in Milan: luxury buyers are turning their attention to Rome for favorable offers."

With Brexit causing bankers to leave London and relocate to other European cities, the luxury real estate market inMilan is booming. However, buyers looking for more affordable properties (and less competition) are starting to search for real estate in other Italian metropolises.

Rome is quickly becoming a favorite among homeowners looking for good deals in light of the pandemic. The Eternal City has shown a strong recovery after the lockdown, according to data from Bloomberg, with sales of premium residential properties increasing by 31.4 percent compared to 2020, the highest figure since 2007. In comparison, Milan, being Italy's fastest-growing financial center, saw sales increase by only 24.4 percent during the same period.

The capital can thank its attractive features and relatively low prices for drawing home buyers to the city. For example, in popular Roman neighborhoods like Trastevere or Garbatella, the average price for luxury homes is $6,500 (about €6,000) for nearly 11 square feet (one square meter) - which is half the cost of similar properties inMilan. And it seems that this compelling combination is yielding results: one in three potential Italian buyers of luxury real estate searching for active listings online is looking for properties inRome, according to a report by Immobiliare.it, a popular Italian real estate website, and LuxuryEstate.com.

Rome is also undergoing a number of significant changes, preparing for a booming development that will attract visitors and shoppers to the city.

However, purchasing real estate inRome can be accompanied by certain bureaucracy due to the complex process of properly identifying the building and its history, which is required by law when buying property. Additionally, the high volume of traffic and lack of public transportation in the city may deter some buyers, although the national government plans to improve the railways, develop metro lines, and focus on the overall revitalization of the city as part of its extensive National Recovery and Resilience Plan.

Despite these drawbacks, more and more wealthy Italian citizens are investing in large homes after the pandemic. "The mood has changed, luxury hospitality is on the rise, there is a lot of free capital for prestigious residences and numerous opportunities for regenerating areas close to the center to accommodate high-quality offices, student housing, and housing for the elderly," said Domenico Bilotta, managing director of InvestiRE SGR, in an interview with Bloomberg. "What is still lacking compared toMilan - and remains a barrier for international funds - is a long-term vision from local authorities on how to transform certain parts of the city, clear plans on how to make the most of existing buildings and urban spaces."