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Yes, the analysis of Milan's property market is included in our pack
As we look ahead to 2025, Milan's real estate market is poised for intriguing developments that could shape the city's future landscape.
What trends are emerging? How are prices expected to shift? What factors are driving these changes?
In this article, we'll delve into 12 key market data points that will provide a comprehensive overview of what to expect in Milan's real estate scene.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Italy Property Pack
12 Market Data Points About the Real Estate Market in Milan
Here is a detailed analysis of the real estate market in Milan, focusing on average rents, yields, price per square meter (sqm), and other relevant data.
- Average Rent per Square Meter:
The average rent in Milan varies significantly depending on the district. In central areas like Brera and Quadrilatero della Moda, rents can reach €25 to €40 per sqm per month. In more suburban areas, such as Bicocca or Lambrate, rents are typically lower, ranging from €12 to €20 per sqm per month.
- Rental Yields:
Rental yields in Milan are generally moderate, reflecting the city's stable real estate market. In prime locations, yields are around 3% to 4%, while in emerging neighborhoods, they can reach 4.5% to 5.5%. Investors should consider these yields when evaluating potential returns.
- Price per Square Meter:
The price per square meter in Milan's city center can be quite high, often ranging from €7,000 to €12,000. In less central areas, prices are more affordable, typically between €3,000 and €5,000 per sqm. These prices reflect the demand for property in different parts of the city.
- Price per Square Foot:
For those more familiar with square foot measurements, the price per square foot in central Milan is approximately €650 to €1,115. In suburban areas, it ranges from €280 to €465 per sqft. This conversion helps international investors better understand the market.
- Market Trends:
Milan's real estate market has shown resilience, with a steady increase in property values over the past few years. The demand for luxury apartments in central areas remains strong, while there is growing interest in eco-friendly and smart homes in suburban districts.
- New Developments:
Several new developments are underway in Milan, particularly in the Porta Nuova and CityLife districts. These areas are attracting both local and international buyers due to their modern infrastructure and amenities.
- Foreign Investment:
Foreign investors are increasingly interested in Milan's real estate market, drawn by the city's economic stability and cultural appeal. This trend is particularly noticeable in the luxury segment, where international buyers account for a significant portion of transactions.
- Impact of Tourism:
Milan's status as a global fashion and design capital boosts its real estate market, particularly in short-term rental properties. The influx of tourists supports a vibrant rental market, especially in central and well-connected areas.
- Commercial Real Estate:
The commercial real estate sector in Milan is thriving, with strong demand for office spaces in business districts like Porta Nuova. Rental prices for commercial properties can range from €300 to €500 per sqm per year, depending on location and amenities.
- Regulatory Environment:
The regulatory environment in Milan is generally favorable for real estate investment, with clear property laws and a transparent legal framework. However, investors should be aware of local taxes and fees associated with property transactions.
- Financing Options:
Financing options for purchasing property in Milan are widely available, with competitive mortgage rates offered by Italian banks. Non-residents can also access financing, although terms may vary based on the buyer's country of origin.
- Future Outlook:
The future outlook for Milan's real estate market is positive, with continued growth expected in both residential and commercial sectors. The city's ongoing development projects and its role as a cultural and economic hub contribute to this optimistic forecast.
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What You Need to Know Before Investing in Milan's Real Estate Market (2025)
What is the average price per square meter in Milan's city center?
As of 2025, the average price per square meter in Milan's city center is approximately €10,500.
This represents a steady increase from previous years, reflecting the city's growing demand and limited supply.
Investors should consider this trend when evaluating potential returns on investment.
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How has the rental yield in Milan changed over the past five years?
The rental yield in Milan has seen a slight increase, currently averaging around 4.2% in 2025.
This is due to a combination of rising rental prices and stable property values.
Investors looking for rental income should consider areas with higher demand to maximize returns.
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Which neighborhoods in Milan are experiencing the fastest growth?
Neighborhoods such as Isola and Porta Romana are experiencing rapid growth due to new developments and improved infrastructure.
These areas are attracting young professionals and families, driving up demand and property values.
Investors should keep an eye on these neighborhoods for potential appreciation opportunities.
What is the impact of Milan's public transportation on real estate prices?
Properties located near metro and tram lines in Milan tend to have higher values, with premiums of up to 15% compared to those further away.
This is due to the convenience and accessibility that public transportation offers to residents.
Investors should consider proximity to transportation hubs when evaluating property investments.
How does Milan's real estate market compare to other major Italian cities?
Milan's real estate market is one of the most expensive in Italy, with prices significantly higher than cities like Rome and Florence.
This is attributed to Milan's status as a financial and fashion hub, attracting both domestic and international buyers.
Investors should weigh the benefits of Milan's dynamic market against potentially lower costs in other cities.
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What are the expected trends in Milan's real estate market for the next five years?
Experts predict continued growth in Milan's real estate market, driven by economic development and international interest.
Key trends include the rise of sustainable and smart buildings, as well as increased demand for mixed-use developments.
Investors should stay informed about these trends to make strategic decisions.
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How does the property tax in Milan affect investment returns?
Property tax in Milan is calculated based on the cadastral value, which is often lower than the market value.
This can result in a relatively low tax burden, enhancing the net returns for property investors.
However, investors should consult with local tax advisors to understand specific obligations and potential changes in tax policy.
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What is the average time on the market for properties in Milan?
In 2025, the average time on the market for properties in Milan is approximately 90 days.
This duration can vary significantly depending on the property's location, price, and condition.
Investors should consider this timeframe when planning their buying or selling strategies.
How does the foreign investment landscape look in Milan's real estate market?
Foreign investment in Milan's real estate market has been increasing, with international buyers accounting for about 20% of transactions.
This trend is driven by Milan's global appeal and favorable investment conditions.
Investors from abroad should be aware of legal and regulatory requirements when purchasing property in Italy.
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What are the financing options available for purchasing property in Milan?
Buyers in Milan can access a variety of financing options, including mortgages from local and international banks.
Interest rates in 2025 are relatively low, averaging around 2.5% for fixed-rate mortgages.
Investors should compare different lenders and terms to find the best financing solution for their needs.
How does the short-term rental market impact property investment in Milan?
The short-term rental market in Milan is thriving, particularly in tourist-heavy areas, offering lucrative returns for property owners.
However, investors should be aware of local regulations and potential restrictions on short-term rentals.
Understanding these factors is crucial for maximizing income and ensuring compliance with local laws.
What are the risks associated with investing in Milan's real estate market?
Risks in Milan's real estate market include economic fluctuations, regulatory changes, and potential oversupply in certain areas.
Investors should conduct thorough due diligence and consider diversifying their portfolios to mitigate these risks.
Staying informed about market conditions and trends is essential for making sound investment decisions.