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As we reach mid-2025, Milan's residential property market continues its upward trajectory with prices hitting €5,512 per square meter citywide.
Property prices in Milan have increased by 2% over the past year and surged 15-28% over the last five years, making it Italy's most expensive and dynamic real estate market.
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Milan property prices reached €5,512 per square meter in June 2025, up 2% from last year.
Luxury apartments and emerging neighborhoods like Bovisa and Lambrate are seeing the fastest price growth, while ECB rate cuts and strong international demand continue fueling the market.
| Metric | Value | Trend |
|---|---|---|
| Average Price per sqm | €5,512 | +2% yearly |
| 5-Year Price Change | +15-28% | Strong growth |
| Luxury Properties | €13,000-15,000/sqm | +5-8% yearly |
| Hottest Areas | Bovisa, Lambrate | +7-12% yearly |
| Market Outlook | Continued growth | +1-4% annually |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices per square meter in Milan as of June 2025?
Milan residential properties now average €5,512 per square meter citywide, marking the highest price point in Italy.
The market shows extreme variation across neighborhoods, with Centro Storico, Brera, and Porta Nuova commanding €10,000-15,000 per square meter for prime properties, while peripheral areas like Bisceglie and Baggio remain more affordable at around €3,000 per square meter.
New construction properties fetch significantly higher prices at €7,250 per square meter on average, reflecting buyer preference for energy-efficient modern homes.
The luxury segment has established itself as a separate market entirely, with exclusive properties in prime locations regularly exceeding €15,000 per square meter.
These price levels represent historic highs for Milan's residential market and continue to attract both domestic and international buyers.
How much have Milan property prices increased over the past 12 months?
Milan's residential property market recorded a 2% price increase over the past 12 months ending June 2025.
While this growth rate appears modest compared to previous years, certain market segments and neighborhoods experienced much stronger appreciation, with some areas seeing increases up to 6% depending on property type and location.
The luxury property segment and new construction developments led the price growth, driven by strong international demand and limited supply of high-quality properties.
Gentrifying neighborhoods significantly outperformed the city average, with areas like Bovisa and Lambrate recording double-digit percentage increases due to urban regeneration projects.
This steady appreciation reflects Milan's resilient property market despite broader economic uncertainties in Europe.
Which Milan neighborhoods saw the highest property price growth in 2025?
Emerging neighborhoods experiencing urban regeneration dominated Milan's property price growth charts in 2025.
The standout performers include:1. Bovisa - up 12% due to university expansion and new metro connections2. Lambrate - increased 11% following creative district development3. Corvetto - rose 10% with major infrastructure improvements4. Cimiano - gained 9% from residential redevelopment projects5. Certosa and Loreto - both up 8-9% due to improved transport links
These areas benefit from a combination of factors including better public transportation, urban renewal projects, and shifting buyer preferences toward previously overlooked neighborhoods offering better value.
Traditional prime areas like Centro Storico and Brera maintained steady but slower growth of 2-4%, reflecting their already elevated price points and limited room for dramatic appreciation.
It's something we develop in our Italy property pack.
Are luxury apartments or mid-range family homes appreciating faster in Milan?
Luxury apartments in Milan are appreciating significantly faster than mid-range family homes, with annual growth rates of 5-8% versus 1-3%.
The luxury segment benefits from strong international demand, with foreign buyers representing over 12% of all residential sales in Italy and concentrating heavily on Milan's premium properties.
Prime locations like Porta Nuova, Brera, and Centro Storico continue attracting wealthy international buyers seeking trophy properties, pushing luxury prices to €13,000-15,000 per square meter.
Mid-range family homes show more modest appreciation except in gentrifying neighborhoods where urban renewal projects create above-average growth opportunities.
This divergence reflects Milan's transformation into a global luxury destination while affordability constraints limit price growth in the broader market.
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What are the property price forecasts for Milan through 2026 and beyond?
Milan property prices are projected to increase by 1-4% annually through 2026 and into the early 2030s.
The five-year outlook remains positive, with energy-efficient properties and prime locations expected to outperform, potentially reaching the upper end of the 4% annual growth range.
Looking further ahead, the 10-20 year forecast positions Milan as Italy's strongest performing property market, supported by continued international investment, demographic growth, and major urban development projects including preparations for future international events.
However, growth rates will likely moderate from current levels as affordability constraints and new energy efficiency regulations impact the market.
Key risks include potential supply increases, construction cost inflation, and broader economic uncertainties, though Milan's fundamentals suggest it will continue outperforming the Italian national average.
How have recent ECB interest rate cuts in early 2025 impacted Milan's property market?
The European Central Bank cut interest rates twice in 2025, each by 25 basis points, directly boosting Milan's property market activity.
These rate reductions lowered mortgage costs and improved credit accessibility, particularly benefiting first-time buyers and young families who had been priced out during the higher rate environment.
Buyer confidence rebounded strongly following the cuts, with transaction volumes increasing and supporting price stability across all market segments.
Banks remain somewhat cautious in their lending practices despite lower rates, preventing a dramatic surge in prices while still providing meaningful support to demand.
The full impact continues unfolding as of June 2025, with expectations that sustained lower rates will maintain positive momentum through the remainder of the year.
What role does international investment play in Milan property price growth?
International buyers now account for over 12% of residential sales across Italy, with Milan attracting the highest concentration of foreign investment.
Foreign capital predominantly targets luxury properties and new developments in prime locations, creating sustained upward pressure on high-end property prices.
Milan's transformation into a global business and lifestyle hub attracts buyers from across Europe, Asia, and the Americas seeking investment opportunities or second homes.
This international demand provides crucial market support, offsetting any domestic economic uncertainties and maintaining price momentum even during periods of local buyer caution.
The trend shows no signs of slowing, with Milan increasingly viewed as a safe haven for international real estate investment within Europe.
Have recent political tensions affected buyer confidence in Milan's property market?
Recent political tensions and government instability in Italy have introduced some caution among domestic buyers in 2025.
However, Milan's property market has shown remarkable resilience, with international demand and the city's strong economic fundamentals largely offsetting any political concerns.
Transaction volumes remain healthy, particularly in the luxury and prime segments where international buyers dominate and are less influenced by domestic political developments.
The market's ability to maintain momentum despite political uncertainty demonstrates Milan's emergence as a truly international real estate market.
Local buyers continue participating actively, recognizing that Milan's long-term growth trajectory transcends short-term political fluctuations.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How is the limited supply of new housing developments affecting Milan prices?
New construction supply remains severely constrained in Milan due to administrative delays, high construction costs, and regulatory uncertainties.
| Supply Factor | Impact on Market | Price Effect |
|---|---|---|
| Administrative Delays | 3-5 year permit process | Reduces new supply by 40% |
| Construction Costs | Up 25% since 2020 | New builds €7,250/sqm average |
| Energy Regulations | Strict efficiency requirements | Premium of 30% for compliant properties |
| Land Scarcity | Limited development sites | Central areas see 5%+ annual growth |
| Developer Caution | Selective project launches | Pre-sales often 100% before completion |
Where new developments do reach the market, they command significant premiums and often sell out before completion, particularly in central and semi-central locations.
This chronic undersupply of new quality housing continues driving prices upward across all market segments.
It's something we develop in our Italy property pack.
What are the main economic factors supporting Milan's property price growth in 2025?
Milan's property market benefits from multiple converging economic factors creating sustained upward price pressure.
Strong employment growth in finance, technology, and fashion sectors continues attracting domestic and international talent, with unemployment at historic lows of 4.2% compared to Italy's 7.8% average.
Major infrastructure investments totaling €15 billion through 2030 include new metro lines, high-speed rail connections, and urban regeneration projects that enhance property values in connected areas.
The city's growing international profile as a business and cultural hub drives tourism and foreign investment, with visitor numbers exceeding pre-pandemic levels by 20%.
Energy efficiency mandates and sustainability requirements create additional value for modern, compliant properties while older buildings face relative price pressure.
Is demand still outpacing supply in Milan's residential market as of June 2025?
Demand for Milan residential property continues significantly outpacing supply across all market segments in mid-2025.
The supply-demand imbalance is most acute for high-quality, energy-efficient properties in central locations where inventory typically sells within 30-45 days.
Estate agents report multiple offers on well-priced properties becoming standard, with some premium listings attracting 10+ competing bids.
New construction cannot meet demand due to regulatory constraints and development timelines, while existing housing stock faces pressure from energy efficiency requirements reducing available inventory.
This fundamental imbalance shows no signs of correction in 2025, ensuring continued upward pressure on both prices and rents throughout Milan's residential market.
Which property types are experiencing the biggest price surge in Milan right now?
Energy-efficient new constructions and renovated properties meeting Class A or B standards are experiencing the strongest price appreciation in 2025.
These properties command premiums of 25-40% over similar non-efficient units, driven by new regulations, lower operating costs, and strong buyer preference for sustainable living.
Penthouses and properties with outdoor space saw explosive growth post-pandemic and continue outperforming, with terraced apartments achieving 15-20% premiums.
Studio apartments in central locations popular with international students and young professionals appreciate rapidly due to rental yield potential exceeding 5% annually.
Conversely, older properties requiring significant renovation face relative price stagnation unless located in absolutely prime positions where land value dominates.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Milan are definitely going up. The market shows consistent growth with a 2% increase over the past year and 15-28% over five years. International investment, limited supply, and strong economic fundamentals continue driving prices higher across all segments.
Looking ahead, Milan's position as Italy's economic powerhouse and increasing global appeal suggest continued price appreciation of 1-4% annually. While affordability concerns may moderate growth rates, the fundamental supply-demand imbalance and ongoing urban development ensure Milan remains Italy's strongest performing property market through 2026 and beyond.
Sources
- Immobiliare.it - Milan Real Estate Market Report
- Investropa - Milan Real Estate Market Analysis
- Idealista - Luxury Homes in Milan Market Growth
- European Central Bank - Interest Rate Decision June 2025
- Chambers - Italy Real Estate Trends 2025
- LinkedIn - Milan Property Market Analysis for Global Investors
- Columbus International - Milan Real Estate Market 2025
- Cushman & Wakefield - Italian Real Estate Trends
- Idealista - Italy Property Price Comparison 2019-2025
- Idee Immobili - Real Estate Market 2025 Trends and Forecasts
-Milan Property Market Overview