Investing in Milan: The Growth Prospects of an Evolving European Capital
Milan, the beating heart of Italy’s economy, continues to be one of the most attractive cities for those looking to invest in real estate and innovative projects. But what are the best strategies to succeed in this ever-evolving market?
Ruggiero Di Luggo and Mauro Ramirez share the strategic choices that have positioned Revving as a benchmark in the real estate sector. The company stands out for its innovative business model, which combines advanced technologies and cutting-edge financial strategies, ensuring high returns while mitigating risks.
This interview is an unmissable opportunity for entrepreneurs and investors who want to understand how to tackle challenges and seize the opportunities offered by a growing city like Milan. Discover how innovation and a strategic vision can make all the difference for those choosing to invest in Milan.
How do you assess the performance of the Italian real estate market in 2024, and what are the prospects for 2025, particularly with regard to the city of Milan?
We enter 2025 with Milan reaffirming its position as Italy’s most dynamic economic and real estate hub, offering significant growth potential compared to other major European capitals.
2024 was marked by a favorable macroeconomic climate: Italy’s GDP grew by 0.2% in the second quarter, inflation declined, and the ECB reduced interest rates.
This environment led to approximately 710,000 transactions in Italy during 2024, with the residential sector showing remarkable dynamism, driven by growing demand for new constructions often characterized by high energy efficiency standards. In Milan, the price of new constructions has increased by 30% over the past five years, while average housing prices experienced an annual growth of 8.8% over the last decade, with a further increase of 9.8% in 2024.
Where does Milan stand compared to major European cities in terms of real estate costs and opportunities? What advantages does it offer to investors compared to more mature markets like Paris or London?
Milan leads the national market with an average cost of €5,500/m², reaching peaks of €12,000/m² in the historic center. However, it ranks only 15th among European cities, behind Paris, London, and markets like Prague and Vienna.
At the European level, Paris tops the list with average prices of €14,900/m², followed by Munich (€10,900/m²) and London (€8,018/m²). Despite this, Milan stands out as a less expensive alternative with potentially higher returns compared to oversaturated cities.
The combination of quality of life, economic centrality, and growth potential makes Milan an attractive destination for investors.
What demographic and urban planning factors are contributing to Milan’s transformation into an international hub, and how does the ‘Milan 2030’ Territorial Governance Plan fit into this evolution?
Milan is not only growing economically but also demographically. The city is benefiting from an influx of young people, students, and foreign workers, with a projected population increase of approximately 100,000 by 2030. Despite declining birth rates, Milan is rejuvenating itself, reinforcing its role as an international hub.
Unlike metropolitan areas such as London and Paris, Milan has a limited geographical extension. However, this presents an opportunity for strategic development. The ‘Milan 2030’ Territorial Governance Plan focuses on urban regeneration, revitalizing suburban areas, and improving quality of life. These initiatives, aimed at optimizing the use of available land, position Milan as a resilient and competitive city within the European context.
How does Milan position itself in the Italian real estate market in terms of attractiveness for investors, and what effects does it have on neighboring cities and the rest of the country?
Milan attracts one-third of the capital allocated to the Italian real estate market, with growing interest from international funds, particularly for high-value properties. It is also Italy’s fastest city for property transactions, maintaining a high volume of deals.
The market in neighboring cities, such as Bergamo, is benefiting from its proximity to Milan, with a 7.3% price increase in 2023.
Southern Italy is showing signs of growth, with Naples and Bari standing out thanks to increased tourism and international real estate investments.
However, Milan remains the most dynamic real estate market in Italy, capable of addressing new demands for sustainability and technological innovation. The city is reshaping the real estate landscape through urban regeneration projects and improved energy efficiency, solidifying its leadership in the sector.
What factors make Milan one of the most promising cities in Europe in the real estate market, and how is it expected to evolve in the coming years?
Milan continues to establish itself as one of Europe’s most promising cities, with a dynamic, resilient real estate market offering significant growth potential. Despite high prices, the city consistently attracts national and international investments due to its economic centrality, quality of life, development opportunities, and geographical growth potential. Urban regeneration policies and a growing focus on sustainability position Milan at the heart of a transformation process that will further enhance its appeal in the coming years.
With a growing population, an expanding economy, and strong demand for new housing, Milan is well-positioned to solidify its role as a leading real estate hub, not only in Italy but also within the broader European context.
Sources: Deloitte Monitor Real Estate, Corriere della Sera