Unveiling Milan's Housing Market with Tirelli&Partners: 2023's Top Sales and Future Projections
Southern Countryside of Milan, Rivergaro (PC) | €6.500.000,00 

In the heart of Italy’s fashion and design capital, Tirelli&Partners Benefit Corporation stands as a leader in luxury real estate expertise. Since its inception in 1987, this Milan-based brokerage has been dedicated to offering bespoke services to the discerning sellers, buyers, and rentees  of Italy’s most extraordinary properties. Tirelli&Partners is the first real estate company in Italy to receive BCorp certification.

Known for its meticulous selection of luxury homes, unique properties, villas, castles, and exclusive estates, Tirelli&Partners has cemented its reputation as Italy’s premier real estate consultant. For over three decades the agency has been at the forefront of shaping and analyzing the dynamics of Milan’s housing market, providing invaluable insights and projections to its high-net-worth clientele.

Tirelli&Partners also became known as the authoritative voice on Milan’s luxury real estate market through its biannual Milan Luxury Residences Report which has been published since 2003.

The Milan Luxury Residences Report

The report delves into the complexities of Milan’s real estate, offering a detailed analysis of supply and demand, sales times, and much more, for both sales and rentals.

Milan continues to captivate both domestic and international investors with its blend of economic vitality, world-renowned design and architecture, and exclusive neighborhoods. Tirelli&Partners’ latest report, analyzing the second semester of 2023, highlights the city’s enduring appeal as a prime investment destination.

Tirelly & Partners (1)

The report highlights activity within the top segment of the market (properties valued over €3 million), largely fueled by international inquiries.

This segment’s robust performance is indicative of Milan’s growing attractiveness for both residences and investments.

Compared to other leading European cities, Milan’s real estate prices are deemed fair, which further enhances its appeal to those looking to invest in luxury properties that are likely to preserve their value in the medium- to long-term.

Here are the main highlights extracted from Tirelli & Partners’ report, with the comprehensive version accessible for download through the company’s official page: Request the full version of Milan Luxury Residences Report.

Showcasing Milan’s Luxury Real Estate Sales in Late 2023

In the latter half of 2023, Milan’s luxury real estate market witnessed significant transactions. The top three sales during this period collectively surpassed €22 million, and prices per square meter ranged impressively from €13,000 to over €20,000. These sales showcase the exceptional value and exclusivity of properties in some of Milan’s most sought-after locations – Palestro, Porta Nuova, and Brera.

Tirelly & Partners (2)

The motivations driving the purchase of luxury residences in Milan have remained consistent, with the desire for a primary residence leading at 58% of transactions, including those by international buyers. Replacement properties accounted for 36% of purchases, while investments slightly dipped to 6%.

Milan’s Global Appeal

Foreign investors have long been enticed by Milan thanks to the city’s unique characteristics that blend convenience with a high quality of life. Milan’s embodiment as a “15-minute city” significantly contributes to its appeal, with the convenience of having 90% of prestigious residential locations within a 1.5 km radius of the city center.

Tirelly & Partners (3)

Milan’s allure is further increased by its lifestyle and culture, which bring together a broad spectrum of professional and educational opportunities with the quintessential Italian way of life. The city’s strategic location also offers easy access to diverse holiday destinations — from lakes and countryside to seas and mountains — making it an unmatched choice for residents and investors alike.

Milan’s Most Sought-After Neighborhoods

In Milan, the allure of luxury real estate is not just in the properties themselves but in the prestigious neighborhoods where they reside. The city’s affluent and high-net-worth buyers gravitate towards specific areas, each distinguished by its unique charm, history, and lifestyle offerings. Among these coveted locales are:

  • Quadrilatero, renowned for its high-end fashion boutiques and timeless elegance.
  • The City Center in the heart of Milan, blending historic architecture with modern energy.
  • Brera-Garibaldi, a cultural hub known for its artistic heritage and vibrant nightlife.
  • Magenta, characterized by historic buildings and closeness to the city’s landmarks.
  • Venezia-Duse, a picturesque area that combines residential streets with upscale dining.

In recent years, the city has witnessed a surge in high-end developments, particularly in its most prestigious areas. This trend emphasizes a significant insight: the luxury residential market in Milan is thriving, driven by a genuine demand for high-quality living spaces.

Tirelly & Partners (4)

Marco E. Tirelli said, “As with any luxury product, it is the supply that creates demand, not the other way around. Evidence of this is the fact that in the last decade, when directional developments dominated the most prestigious areas of the city, office rental rates soared to €700 per square meter/year, a level comparable to all major European cities. However, this monopoly has deprived the luxury residential market of a very high-quality offering for which there was,and is, demand.”

A Closer Look at Supply and Demand in Milan

Milan’s real estate market in late 2023 continued to see a varied demand across different segments. High-end properties above €3 million witnessed quick sales, primarily driven by international and returning Italian buyers, despite a shortage of high-quality listings. Mid-range properties, affected by economic uncertainties, saw slower transactions, while the lower segment remained active but faced the challenge of fewer quality offerings.

The limitations of the housing market in Milan can be attributed to:

  • The post-pandemic buying rush depleting the existing stock in terms of both numbers and quality expectations, with a focus on properties featuring outdoor living spaces.
  • Tax incentives attracting foreign and returning Italian buyers, significantly impacting the Top segment and doubling the number of transactions compared to pre-2019 levels.
  • The rise in off-market transactions and an increase in financial resources directed towards real estate putting strain on the housing supply.

Evolving Price Trends in Milan’s Luxury Market Since 2014

In Milan’s luxury real estate market, the average asking prices have shown resilience and modest growth despite the limited supply. Late 2023 marked the highest levels since 2014, particularly in areas like Quadrilatero and Porta Venezia, where there is a scarcity of new listings.

Tirelly & Partners (5)

Other sectors like Brera and various high-end zones experienced slight increases, suggesting a healthy market dynamic. Discounts have reverted to pre-pandemic levels, balancing the slight uptick in asking prices.

Market Forecast

The Milanese luxury real estate market is shaped by varying factors across different segments. Stability is anticipated in the Low segment, where the influence of strong stock markets and high inflation may keep investment interest and transaction volumes consistent. Uncertainty in the Medium segment is expected thanks to global economic and political unrest. The Top segment, however, paints a different picture.

Driven by significant international interest and a notable scarcity of premium listings, an uptick in asking prices could emerge. Owners of high-quality estates might consider capitalizing on this increasing demand. In general, sale prices in Milan’s luxury market are projected to maintain their current stability. But it’s the availability and quality of properties that will ultimately drive sales.

Tirelly & Partners (6)

The State of the Italian Housing Market

Milan’s housing market in late 2023 demonstrates a dynamic environment with a steady absorption rate (-0.6%). This indicates consistent interest from buyers despite varying transaction volumes. The period highlighted a continuous demand for high-quality properties across different price segments, reinforcing Milan’s position as a vibrant luxury real estate market.

Transaction durations averaged 5.4 months, with slight improvements in price negotiations, suggesting a market that values quality. Premier properties found buyers quickly, often off-market, while less distinctive homes remained longer, highlighting an increasingly selective market landscape. This focus on quality over quantity suggests thoughtful growth, affirming Milan as a leading location for discerning real estate investors.

Tirelly & Partners (7)

Overall, Tirelli&Partners’ Milan Luxury Residences Report shows that Milan’s affluent neighborhoods continue to captivate high-net-worth individuals and investors. Price trends in the city’s most sought-after areas remain strong, and compared to other European hubs the market is still considered to be manageable.

For an in-depth exploration of Milanese luxury living and investment opportunities, contact Tirelli&Partners directly through JamesEdition. Or delve deeper by downloading the full report on their official website. Discover the epitome of luxury in Milan, where elegance and investment potential converge.

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