Among those who have bought a house in Milan in recent years, the best treatment -in proportion- was made by those who bought in the less central districts. This is highlighted by an analysis carried out by Casavo, the digital platform that acts as a meeting point between those who seek and those who offer properties, which compares the data of the transactions carried out jointly between June 2019 and March 2020 with those of the same period. but two years later.
In two years, the price per square meter has grown by 61.7 percent in the Viale Certosa/Cascina Merlata area, 51.2 percent between Rogoredo and Corvetto, and 48 percent in Turro. In general, the largest increases are recorded far from the center. In fact, they are followed in the ranking by Famagosta/Barona (47.4%), Affori/Bovisa (46.2%) and Bande Nere/Inganni (44.2%).
On the other hand, the increases in the most popular areas are much more measured. Between Citylife and Sempione, prices per square meter grew proportionally much less (+26.5 percent)as well as in the Central Station area (+26.3 percent) and Porta Romana (21.4 percent). All districts that, it must be said, already registered very high prices and for which the increases, in absolute terms, are worth more than a thousand euros in just two years.
“Behind this trend we mainly see two factors,” underlines Massimiliano Graziosi, administrator of the Milanese city of Casavo. “On the one hand, the issue of remodeling the urban fabric that is taking place throughout the city. Let’s not forget that there is areas, such as Isola or Porta Romana, which a little over ten years ago were considered almost popular, now instead they almost reach 10,000 euros per square meter. The second factor is linked to the phenomenon of inflation. With increasingly expensive mortgages, it is difficult to buy a house in the most central areas and that is why we tend to look at more accessible areas”.
The trend is slightly different when looking at the sales data. Here the data photograph the more or less dynamic neighborhoods from the point of view of real estate transactions. The highest percentage is recorded in the Abbiategrasso/Chiesa Rossa area, where sales grew by 5.1 percent in two years. The Corvetto/Rogoredo area continues to occupy second place, with growth of 4.3 percent, followed by Porta Venezia/Indipendenza with +4 percent. However, it is striking how overall, at least for the transactions brokered by Casavo on which these data are based, for more than half of the Milanese districts the number of sales has decreased.
“In this case, it must be said that the observation period affects the data, still conditioned by the Covid period that has caused a general displacement from the center to the outside of the city”, observes Graziosi. “More generally, the ready-made argument applies in this case as well: Milan is becoming an increasingly expensive city and salaries are not enough. Therefore, the tendency of home buyers is to target peripheral areas or even neighboring realities such as Monza, in any case well served by the city”. The data confirms this trend with an acceleration in sales registered in the municipalities of Parabiago (+44 percent) and Legnano (+23 percent).
The analysis then highlights another element. According to the data of the analyzed transactions, the price of real estate increases significantly in case of reforms. Operation carried out by the same platform in the case of direct purchase of real estate, allowing you to have even more precise data. With a total of 43,580 square meters renovated in the five years of activity in Milan, the analysis shows that in the center, once the works are completed, the value grows by 18 percent and in the outskirts it rises by more than a quarter (+ 26 percent).
As for the future, Graziosi is not overwhelmed. Although the dynamics at the international level seem quite clear: the increase in rates and, therefore, the increasing mortgages are destined to cool the sales market and, consequently, to lower the value of prices. “For the less affluent group of buyers, we expect a drop and overall there could be a slowdown in the market.. Regarding prices, Milan, as we know, is a bit of a special case, living in a kind of bubble that somehow continues to hold up. With the Olympics in 2026, we expect property values to hold up until then.”
Leave a Reply