The acceleration of the Milan real estate market: luxury buyers are turning their attention to Rome for the best deals..

Due to Brexit, bankers have started moving from London to other European cities, and the luxury real estate market inMilan has begun to flourish. However, buyers looking for more affordable properties (and wanting to avoid competition) are starting to pay attention to another Italian city. Rome is quickly becoming a favorite for those seeking good deals after the pandemic.

The Eternal City is showing a strong recovery after the lockdowns, with premium housing sales increasing by 31.4 percent compared to 2020, reaching the highest level since 2007, according to Bloomberg data. In comparison, Milan, which is the fastest-growing financial center in Italy, saw sales increase by only 24.4 percent during the same period.

The capital can thank its attractiveness and relatively low prices for drawing home buyers to the city. For example, in popular areas ofRome, such as Trastevere or Garbatella, the average price of a luxury home is $6,500 (about €6,000) for nearly 11 square feet (one square meter) - half the cost of similar properties in Milan. And it seems that this compelling combination is yielding results: every third potential buyer of luxury real estate in Italy, looking for deals online, is searching for properties in Rome, according to a report from Immobiliare.it, a popular real estate website in Italy, and LuxuryEstate.com.

Rome is also undergoing a series of important changes in preparation for a booming development that will attract visitors and shoppers to the city.

However, purchasing real estate in Rome can come with certain challenges related to the process of properly identifying the building and its history, which is required by law when buying property. Combined with the high level of traffic in the city and the lack of public transportation, this can deter some buyers, although the national government plans to improve railway lines, develop metro lines, and focus on the overall enhancement of the city as part of its extensive National Recovery and Resilience Plan.

Despite these drawbacks, more and more wealthy Italians are investing in large homes after the pandemic. "The mood has changed, luxury hospitality is coming in mass, there is a lot of capital available for prestigious residential properties, and many opportunities for regenerating areas close to the center to create high-quality offices, student housing, and senior living facilities," said Domenico Bilotta, CEO of InvestiRE SGR. "What is still lacking compared to Milan - and remains a barrier for international funds - is the long-term vision of local government on how to transform certain parts of the city, clear plans for the use of existing buildings and urban spaces."