No luxury at the foot of the Madonnina

Buying and selling is seeing a general contraction, but the Milanese market does not seem to notice. Especially as far as luxury is concerned: in the first half of 2024 the high-end sector held its own, with little or no impact on prices. This is highlighted by the insight on theMilan and Rome markets for the first six months of the year, published by Engel & Völkers, in collaboration with Nomisma.

According to the analysis, luxury properties with sales prices in excess of two million euro, located in prestigious areas and in good condition, are seeing continued growth in demand thanks to sustained demand from foreign investors. Especially in Milan: "In a market characterised by a general slowdown,the luxury sector continues to hold its own at a national level and in the city of Milan, which is also attractive to foreign clients due to its strong internationalisation," said Engel & Völkers Italia ceo Muhannad Al Salhi.

As far as domestic demand is concerned, the historic centre remains attractive for younger customers, who prefer small sizes, and for investors looking at tourism-related rental opportunities. Families, on the other hand, direct their preferences towards more decentralised areas, characterised by good services and connections. Areas in particular demand include those affected by urban redevelopment, especially if they are well connected to the centre.

According to the analysis, according to Luca Dondi dall'Orologio, executive board member of Nomisma, despite the fact that the Milan market is still experiencing a rather marked half-yearly drop (-10.1%), "it is still performing well in the prestige segment, in light of the lower dependence on credit".

For the second half of the year, the forecasts are for an improvement in the Milan market, "with average prices rising slightly thanks to the continuedpull of foreigners returning and the gradual reduction in interest rates as well as the approaching appointment with the Winter Olympics," explained Roberto Magaglio, licence partner Engel & Völkers Milano. "The reduction in rates will hopefully allow for a greater conversion of purchase intentions, always at good levels, especially in the lower end of the market".