Milan offers the most interesting valuations, according to UBS’s Global Real Estate Bubble Index 2017 Report by UBS Wealth Management, which analyzes residential property prices in cities across the world.
The 2017 data shows a significant improvement in the outlook and a steady increase in employment in Lombardy, which in turn will support incomes. UBS also believes that house prices are therefore set to rise.
Milan is the city that makes a major contribution to the recovery of the residential sector, thanks also to the positive impact of major events like the Expo.
Foreigners like Milan
In terms of origin of capital, in 2017 the Italian real estate market continued to attract the attention of foreigners. In particular, following the CBRE analysis, in the third quarter of 2017, foreign flows accounted for 54% of the total. For example, according to the BNP Paribas Real Estate surveys, German investment flows doubled, while the British and French inflows increased significantly. The capital coming from the United States is on the rise, even if in a more attenuated way (+ 10%).
To become increasingly competitive, Milan will have to continue investing in infrastructure and producing new, innovative and modern buildings, such as the new towers that have changed the city’s skyline.
Real Estate Developments in 2018
The main real estate developments of 2018 are divided between new buildings and major redevelopment of some of the central areas of the Lombard capital.
Below is a list of some of the main projects that are under construction in 2018 in Milan.
1) Campus Bocconi – Former Central Milk
Work continues on the Bocconi shipyard in the former Centrale del Latte, Porta Lodovica area.
The project, which is very complex, includes the construction of a three hundred-seat university residence, an area with an Olympic pool and sports facilities open to citizens, the new headquarters of the Business School and the construction of a park with recreational areas for students, as well as the functional and landscaping of public areas in the municipal areas – the University is totally responsible – for a total amount of about 5 million euro.
More info: Sarfatti25
2) Ex-Falck Sesto San Giovanni
One of the most discussed redevelopments is the area of the historic headquarters of the Falck steelworks and foundries of Sesto San Giovanni.
Milanosesto is a project that extends over an area of 1 million 400 thousand square meters that will lead to the birth of a new city designed according to the highest standards of energy saving and immersed in a green oasis of about 65 hectares. The project promoter is Sesto Immobiliare and the project represents the largest urban redevelopment in Europe with the signature of an important architect: Renzo Piano.
More Information: Milanosesto
3) Ex Scali Ferroviari
Project launched in 2015 between the Municipality of Milan and the Italian State Railways to re-evaluate some structures abandoned by FS in different areas of the city. Overall, the surface is 1.2 million square meters which includes the former stations and deposits of Farini, Romana, Porta Genova, San Cristoforo, Greco, Lambrate and Rogoredo.
The project approved in July 2017 envisages a mainly residential destination.
Further information: Municipality of Milan
4) Ex Area Expo – Rho
The redevelopment of the Expo exhibition area in the Municipality of Rho has been mentioned since before the Expo structure and pavilions were built, comparing the famous examples of the universal exhibitions such as the Eiffel Tower in Paris or the Atomium in Brussels.
Two years after the closure of the exhibition area, the project for the redevelopment through a project called Human Te
chnopole for the transfer of the Campus of the State University will cost between 350 and 380 million.
Further information: Corriere della Ser
Left to say that these promising developments in the city of Milan offer an optimistic standpoint towards future investment opportunities.
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