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A certain concern about the general outlook for Real Estate in Italy, due to uncertainty and political instability, seems to be balanced by positive expectations about Brexit. With the UK leaving the European Union, Milan is ready to run for the relocation of the European Patent Office and the European Medicines Agency. This would open up new possibilities for Milan to receive capitals to be invested in real estate.
Lombardy plays a key role in this sector, with rents keep climbing in the Fashion District and major brands keep on opening new flagship stores in Milan, exploiting the “long tail” of Expo2015 and the momentum of the city. Rent per square meter on Montenapoleone (Milan’s most famous and exclusive shopping venues) rose in 2016 by 20%, boosted by “a strategic deal with SEA Prime, who manages private flights at Linate and Malpensa airports” as reported here.
Regarding offices, from an international point of view, Milan is in the top 20 cities by rental values, same as San Francisco and has the 21.90% share of the Italian office stock.
Lombardy, however, is not only Milan and its factors of interest go beyond fashion and design. The region seems to represent interesting investment opportunities for foreign investors, attracted in the last years by luxury shopping areas and prime offices, but starting also to consider deals in the industrial, logistic and office field, not letting aside the residential, showing signs of recovery and benefitting from “an increasing propensity to live in town”, as explained by Italy24 here.
Lombardy is establishing itself as the most dynamic market of the country when it comes to the residential sector, with about the 20% of the domestic transactions, amounting to nearly € 15 billion of economic turnover (as estimated by the Italian Revenue Agency in 2015 and commented by our partner World Capital – Real Estate Group here).
In the logistic sector, Lombardy has the greatest relative presence of warehouses with 19.5% share of the Italian stock, due to the combination between the density of industries and the convenient location.
2017 is expected to be an exceptional year for Real Estate investments in Europe – click here to see the forecast. In the upcoming MIPIM exhibition, which will be held from 14th to 17th in France, Italy will exhibit, supported by Italian Trade Agency. An occasion to promote the new portal Investinitalyrealestate.com which presents opportunities for investment in Real Estate owned by the government, by companies in which the government or other public bodies have a shareholding or those with mixed public-private shareholders.