“During 2016, the prestigious property market in Milan and Rome recorded positive signals, especially as regards the sales segment. In particular, demand was on the rise in most of the areas analysed, while in terms of supply for sale in Milan there was growth between the first and second half of 2016, while in Rome the stock offered was stable" - this is what emerges from the Report "The Market of Luxury Properties in Milan and Rome - Residential Sector H1-H2 2016" created by the new collaboration between Nomisma and Santandrea Luxury Houses which took into consideration the two main markets: Milan and Rome.
The Nomisma - Santandrea report presents the mapping of the traditional prestigious areas of the cities of Milan and Rome with a socio-demographic and real estate analysis. Alongside this, the new luxury residential development areas have been outlined, compared to the now consolidated ones, through a Focus on new buildings.
MILAN
Within the context of the consolidated prestigious areas, in Milan, the Quadrilatero presents the highest values both on the sales market (between 11.000 and 13.000 €/sqm for new or refurbished properties, and between 9.000 and 11.000 €/sqm for used or to be restored) and on that of leases (between 300 and 400 €/sqm/year for new or renovated homes, and between 200 and 300 €/sqm/year for used homes or homes to be renovated). Spaced out all the other areas, starting from Palestro-Duse and Brera. The lowest values are recorded in the Magenta, Pagano and Castello area (between 7.000 and 8.500 €/sqm for new or refurbished properties and 5.500 and 6.500 €/sqm for used or refurbished properties).
During the second half of 2016, the city of Milan recorded a drop in prices of -1,0%, more pronounced in the Magenta-Pagano-Castello area (-2,0%), while in the Historic Center and Brera the prices are remained unchanged. The average gap between the asking price and the effective price stands at values between 11,0% and 15,0%, with a city average of 12%. Considering the average sales times, the minimum data is recorded in the Brera, Centro Storico and Palestro-Duse area (5 months), while the maximum does not go beyond 8 months. The city average stands at 5,5 months.
The Milanese rental market recorded variations in rents ranging between -2,0% in Brera and -5,0% in the Quadrilatero (with the city average standing at -3,5%); the range of the average difference between the rent requested and the actual rent goes from 10% to 11%. As regards the average rental times, they range from 2 months in Brera up to a maximum of 4 months for all areas.
Within the Milanese market – reads the study – the areas most in demand for buying and selling are limited to the Brera, Castello and Indipendenza areas. As regards the sizes, the surfaces are around 180-200 m70; Brera, Magenta and Carrobbio – on the other hand – are the most requested areas in the rental market. The sizes in this case are limited to smaller spaces (between 130 and XNUMX mXNUMX). Terrace with a view on the upper floors, concierge service and triple living room are the features most requested by customers, while, on the lower floor, the absence of balconies, proximity to sources of noise and the presence of a blind bathroom, if it were the only one, they represent critical factors that condition the marketability of the house.
Roma
Still within the context of the consolidated prestigious areas, Rome has average buying and selling prices that vary according to the area. The Historic Center is confirmed as the area with the highest prices (from €9.000/sqm to a maximum of €12.000/sqm for new or refurbished properties, from €7.000/sqm to €10.000/sqm for used homes or homes to be renovated). The lowest average prices per square meter for luxury homes are found in the Flaminio area (€5.300/sqm for new or renovated properties) and in areas such as Parioli and Salario-Trieste (€4.500/sqm for used homes or homes to be renovated ).
In Rome, the average change in sales prices was -2,4%, more negative than in Milan. Considering the sales market, the Parioli area recorded -5,0% on a six-monthly basis, followed by -3,0% in Prati, Salario-Trieste, Trastevere and Flaminio. The average gap between the asking price and the effective price is, in general, no more than 15,0%, a value that is common to most areas of the Capitoline city. Average sales times vary from a minimum of 4 months in the Aventino area to a maximum of 10 months for the Parioli area. Rents also recorded a half-yearly decline of -2,5% at the city level with peaks of -5,0% in the Parioli, Flaminio, Pinciano-Veneto and Salario-Trieste areas. In the remaining locations the fees were unchanged. The average drop at city level was 9,6%. Average lease times range from 2,4 to 4,1 months.
In the Rome market, the demand for buying and selling is concentrated more in the historic center and Piciano-Veneto areas and customers prefer properties with a surface area between 120 and 180 m110; in the rental sector, the most requested areas are Prati and the Historic Center with solutions that have an average surface area of XNUMX square meters. Panoramic view, terrace on the top floor and the presence of a single or multiple garage are the most important requirements for Roman customers. In some cases, the absence of the box can exclude the interest in the home.
FORECASTS
Forecasts for the first half of 2017 for the sales market in Milan and Rome indicate a growth in the purchase demand and in the number of sales, while a stability of the offer for sale and the sales prices is expected. For the rental market, the positive trend in terms of demand is expected to continue (greater possibilities of realization in Rome rather than in Milan considering a more lively demand in the capital). The number of contracts should also be growing while rents are expected to remain stable.
“The luxury market confirms a positive trend in 2016 as well. – declares Fabio Guglielmi, general manager of Santandrea Luxury Houses – We reiterate that the luxury market is a market with particular logics, which distinguish it from the residential tout court, which in recent years has seen in part change some dynamics. Luxury is now a sum of contextualized characteristics: not only the prestigious central area, but also the building in which the apartment is located, characteristics such as the upper floor and exposure, security and the presence of concierge and surveillance services , the presence of a terrace and garage. All elements that can have different variations in terms of weight depending on the specific city context in which we find ourselves. Our customers are increasingly demanding and aware, that of the prestigious house remains an important investment in a market that has increasingly complex dynamics, which if well thought out and evaluated through the support of specialized consultants can give a positive response in the medium term.” .
NEW BUILDING SITE
The Focus on new prestigious buildings in Milan and Rome offers a synthetic picture of the residential luxury pipeline over the next few years and maps the new areas of the prestigious market, compared to the consolidated areas. In both cities, average offered prices were recorded for units located on intermediate floors, excluding lower floors and penthouses/top floors.
In Milan, 31 initiatives were surveyed, of which 18 are still under construction, while the remainder were completed in the period 2013-2016. The average price per square meter offered for sale was 7.696 €/sqm within a wider range between 4.773 €/sqm and 13.452 €/sqm. In Rome, 18 initiatives were surveyed, 11 of which are still under construction. The average price per m8.032 is equal to 4.700 €/m12.698 and is included in the range from XNUMX €/mXNUMX to XNUMX €/mXNUMX.
