Synonymous with the fashion world, it seems that the Italian city of Milan is also back in fashion for overseas property investors.
Milan has become the focus of a significant number of real estate investors from all over the world, especially from Saudi Arabia and Japan and has been ranked as one of the best cities for investment by PwC.
Known as the cosmopolitan capital of Italy, Milan was one of the first cities to react to the downturn that the Italian property market has suffered since the global financial crisis in 2007.
Italy’s second most populous city after Rome, Milan has the third-largest economy among European cities and the wealthiest among European non-capital cities.
It is also the capital of the Lombardy region, by far the most populous of all Italy’s twenty regions with over ten million inhabitants, almost one sixth of the national total, generating a strong demand for accommodation.
The city has long been named fashion capital of the world and the world’s design capital, thanks to several international events and fairs, including Milan Fashion Week and the Milan Furniture Fair, which are currently among the world’s biggest in terms of revenue, visitors, and growth.
In addition to the fashion and design industries, Milan is also a financial hub and home to 200 Italian banks and 40 foreign banks, so overseas property investors have the opportunity of accessing competitive funding on the doorstep.
Recent years have seen many major commercial building projects in the city, such as the Unicredit and Allianz skyscrapers, but also residential as in the construction of Citylife – a project with a value of two billion euros covering an area of 366 thousand square metres (with 530 apartments, a shopping district and three towers for offices).
For those with an environmental conscience there is also a ‘green’ residential development situated close to the city centre called Pier Paolo Pasolini, which has been built with ecological considerations in an attempt to achieve zero impact. The complex is entirely geothermal and has attained class A+.
There is a broad variable in the prices of residential apartments in Milan, but the historic centre of the city can often offer the best return on investment for overseas property investors.
Areas such as Sempione, Corvetto, Bovisa, Affori, Lambrate, Piazzale Lodi and Porta Venezia command significantly higher prices for the purchaser but also provide a significant potential profit as a long-term investment, as demand is always high for rented accommodation in the city centre.
Overseas property investors may require fairly deep pockets to invest in Milan, but it seems the city will always be in fashion.