Residential, in Milan reached 24,000 euros per m2 in the Quadrilatero

Luxury knows no crisis. In a slowing real estate market, the luxury brick segment continued to run in the second half of 2023, achieving new records in terms of prices. This is what emerged from the latest report from a well-known real estate group with the scientific support of Nomisma according to which both in Milan and Rome the demand for luxury homes has remained solid with values ​​in line if not higher than those of a year earlier. “The high-end market of the two largest Italian cities was only partially affected by the national real estate situation, which was slowed down for a few semesters by the onerous conditions of access to credit, to which demand reacted with wait-and-see, causing sales to decrease by 15.5% in Rome and 16.8% in Milan in the first three quarters of the year”, reports Luca Dondi dall'Orologio, CEO of Nomisma. “This macroeconomic context has also impacted the prime market due to the share of demand dependent on credit, but to a minimal extent on the luxury segment, unrelated to credit dynamics...For this reason, in 2024, we will continue to invest strategically in Italy”. 
YOUNG PEOPLE AND INVESTORS LOOK AT THE CENTER, FAMILIES, DECENTRALIZED AND WELL-SERVED AREAS
In Milan, the interest in demand is aimed at the central areas for younger buyers and for investors looking at tourism, while families continue to prefer more decentralized areas with good services and connections. As regards the historic centre, the top prices have reached 24,000 euros per m2 in the Quadrilatero and 21,000 euros/m2 in Brera and in the Castello-Foro Buonaparte area. The maximum values ​​of San Babila and Cordusio are also stable, between 18,000 and 19,000 euros per m2. Average prices in the western area instead varied between 4,200 and 6,500 euros per m2 in Gambara-Bande Nere and San Siro and around 10,000 euros/m2 in Sempione-Arco della Pace Chinatown and Vercelli-Washington. City Life's prices, however, are out of range: 8,000-15,000 euros per m2. Average prices in the eastern area are increasing in Porta Venezia and Indipendenza-Cinque Giornate-XXII Marzo....Here the purchase and sale values ​​fluctuate between 4,500 and 9,600 euros per square metre. In the northern area, the prices of Porta Nuova-XXV Aprile and Garibaldi-Moscova-Arena are growing, reaching 19,800 and 13,000 euros per square meter respectively. Finally, in the southern area the prices vary between 6,500 euros per m2 of Medaglie d'Oro-Lodi and 11,000 euros per m2 of Porta Romana-CrocettaQuadronno. 2023 was the first year of returning to post-Covid normality. The replacement demand, after the pandemic, has progressively dried up, while the incredible sequence of interest rate increases that began at the end of 2022 has completely changed the reference financial context, decreasing the possibility of accessing a mortgage or making it extremely more expensive. In this context, the Milanese real estate market remains stable, despite the significant decrease in transactions and the expected increase in the stock on offer, prices remain sustained and are inelastic to the context. We expect an improvement in the reference context starting from the second half of 2024.