A guide from Spacest.com
The Milan real estate market has undergone significant changes in recent years, especially following the COVID-19 pandemic.
This article will analyze the trend in house prices and canons of rent in Milan, comparing pre-pandemic data with current data.
We will provide a detailed overview to help both tenants and landlords better understand the current environment.
Se friend Milan and its liveliness take a look at the guide The best neighborhoods to live in Milan.
House price trends in Milan
Before the Pandemic (2018-2019)
In 2018 and 2019, house prices in Milan they were already on the rise, driven by growing demand and a limited supply of real estate.
According to data fromReal Estate Market Observatory (OMI), The average price per square meter for residential homes in the center of Milan it was around €6,000 in 2018, rising to around €6,300 in 2019.
This increase was mainly due to the city’s attractiveness as an economic and cultural centre, which attracted professionals and investors from all over Italy and abroad.
During the Pandemic (2020-2021)
The COVID-19 pandemic had a significant impact on the real estate market in Milan.
In 2020, due to the lockdown and economic uncertainty, there was a temporary slowdown in real estate transactions.
However, the market quickly recovered in 2021, with strong demand leading to further price increases.
By the end of 2021, the average price per square metre in the centre of Milan had reached EUR 6,800.
This increase was fuelled by the growing need for larger living spaces with outdoor areas, such as balconies and terraces, to adapt to the new lifestyles imposed by the pandemic.
Post-Pandemic (2022-2023)
In 2022 and 2023, house prices in Milan they continued to grow.
Demand for housing in the city and its suburbs has pushed up property prices.
In mid-2023, the average price per square meter in the center of Milan it exceeded €7,000.
In particular, the recovery of economic activities and the return to normality have contributed to maintaining high demand for residential properties, especially in central and well-connected areas.
Increase in rent in Milan
Pre-Pandemic (2018-2019)
Before COVID-19, i rental rates in Milan they were already growing.
In 2018, the average rent for a two-room apartment in the city center was around €1,200 per month while, in 2019, this figure had risen to around €1,300.
This trend was due to the influx of students, professionals and tourists seeking temporary accommodation in the city, pushing owners to increase rents.
During the Pandemic (2020-2021)
During 2020, due to the lockdown and the temporary reduction in rental demand, some landlords lowered their rents.
However, in 2021, as businesses resumed and students and workers returned to the city, rents increased again.
At the end of 2021, the average rent for a two-room apartment in the city center was around €1,350 per month.
This increase has also been influenced by the growing need for living spaces suitable for remote working and distance learning.
Post-Pandemic (2022-2023)
In 2022 and 2023, i rental rates in Milan have continued to grow, partly due to increased demand for larger, well-connected homes.
In mid-2023, the average rent for a two-room apartment in the city center had reached €1,500 per month: discover the advertisements for two-room apartments for rent in Milan.
The recovery of international tourism and the increase in cultural and trade fair events in the city have further fueled the demand for accommodation, contributing to the increase in rents.
House prices in Milan: comparison with other areas
Not all areas of Milan they experienced the same price increase. Suburban areas saw less marked increases than the city center.
For example, in Lambrate district, the average price per square meter went from €4,000 in 2018 to €4,500 in 2023.
Rents, however, have increased from €900 per month in 2018 to €1,100 in 2023 for a two-room apartment.
Find out in our guide Rentals in Milan: which are the most expensive neighborhoods? an overview of rental costs in Milan.
Growing areas
Some areas of Milan, as Roman Gate and Island, have seen a significant increase in both house prices and rents.
Porta Romana, for example, has benefited from major urban redevelopment projects and improved transport infrastructure, which have made the area particularly attractive to buyers and renters.
In Isola, the proximity to Porta Nuova and to Garibaldi station has made the area very popular among young professionals and investors.
Implications for tenants and landlords
Tenants
For tenants, the increase in rent represents a significant challenge.
It is important to consider solutions like the apartment sharing or looking for homes in less central areas to reduce costs.
Furthermore, tenants should carefully evaluate their housing needs, taking into account the proximity to the place of work or study and the quality of services available in the area.
Starting your search well in advance can be a good strategy for finding properties for rent in Milan at better prices.
Landlords
For landlords, the increase in house prices in Milan and rents offers interesting opportunities to maximize the returns on real estate investments.
However, it is critical to keep properties well-maintained and competitive to attract quality tenants.
Landlords should also consider adopting security strategies long term rental, relying on platforms such as Spacest.com.
These they can guarantee greater stability than short-term or tourist rentals, which are subject to seasonal fluctuations.
And with Spacest.com you will have the opportunity to take advantage of the innovative service for landlords Guaranteed rental; maximum performance, minimum effort: find out in our dedicated guide.
Rental house prices: comparing Milan and Rome
This discrepancy has led to a more significant increase in rents in Milan compared to Rome, where high demand and limited supply have affected prices.
However, thanks to the adoption of the agreed fee, the increase in Rome was not as marked as in Milan.
In Rome, in fact, the average rent for a two-room apartment in the city center went from €1,100 per month in 2018 to €1,200 in 2023, a much smaller increase than in Milan.
This is partly due to the different structure of the Roman real estate market, where the agreed rent has contributed to maintaining a certain stability in rental prices.
Learn more about the rental market in Rome in our in-depth analysis Rental fees in Rome: “Jubilee Effect”.
In conclusion
The Milan real estate market has undergone significant changes since the COVID-19 pandemic.
I house prices and rents in Milan have increased significantly, especially in central areas.
This scenario presents challenges and opportunities for both tenants and landlords.
Staying informed and adapting to market changes is essential to successfully navigate this dynamic environment.
Tenants should explore all available options to find affordable housing options, while landlords should consider long-term strategies to maximize returns and keep properties competitive.
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