Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
Milan's property market continues to be one of the most dynamic in Europe, and understanding where prices are heading is essential for anyone considering buying real estate in the city.
We update this blog post regularly with fresh data and new forecasts so you always have the most current picture of Milan housing prices.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Milan.
Insights
- Milan property prices average around €5,500 per square meter in January 2026, but central neighborhoods like Brera can exceed €10,000 per square meter while outer areas stay closer to €3,500.
- The price gap between Milan's most expensive and most affordable neighborhoods has widened to nearly 3x, making location the single biggest factor in what you pay.
- Precotto-Turro, Bicocca-Niguarda, and Viale Certosa are the Milan neighborhoods forecast to outperform in 2026, largely because they started from lower price bases with improving transport links.
- Energy-efficient apartments in Milan now sell at a 10 to 15 percent premium over comparable units with poor energy ratings, and this gap is expected to widen as renovation costs rise.
- Milan's Olympic Village project in Porta Romana will convert to residential housing after the 2026 Winter Games, adding new supply but also boosting neighborhood desirability.
- The M4 metro line completion has already lifted property values near its stations by an estimated 5 to 8 percent, with further gains expected as ridership grows.
- Milan rental yields remain compressed in prime areas at around 3 percent gross, but outer neighborhoods with good transit can still deliver 4 to 5 percent.
- New-build apartments in Milan command a 20 to 25 percent premium over older stock, driven by energy efficiency requirements and buyer preference for turnkey homes.
What are the current property price trends in Milan as of 2026?
What is the average house price in Milan as of 2026?
As of early 2026, the average property price in Milan sits at approximately €420,000 for a typical 75 square meter apartment, which translates to around $435,000 or £365,000 at current exchange rates.
When you look at price per square meter, Milan properties average about €5,500 per square meter across the city, or roughly $5,700 and £4,800 per square meter respectively.
That said, the realistic price range covering about 80 percent of Milan property purchases spans from €250,000 to €750,000, reflecting the huge variation between a small apartment in an outer neighborhood and a renovated flat in a central district.
How much have property prices increased in Milan over the past 12 months?
Property prices in Milan have increased by approximately 3 percent over the past 12 months, marking another year of steady growth for the city's residential market.
The range of price increases varies quite a bit depending on property type and location, with some regenerating neighborhoods seeing gains closer to 5 percent while mature prime areas grew by only 1 to 2 percent.
The most significant factor behind this price movement has been the chronic shortage of quality, energy-efficient homes in Milan's most desirable neighborhoods, which keeps pushing prices up even as overall transaction volumes remain modest.
Which neighborhoods have the fastest rising property prices in Milan as of 2026?
As of early 2026, the three Milan neighborhoods with the fastest rising property prices are Precotto-Turro, Viale Certosa-Cascina Merlata, and Bicocca-Niguarda, all located in the northern and northwestern parts of the city.
These top-performing neighborhoods have seen annual price growth ranging from 5 to 7 percent, well above the city average of around 3 percent.
The main demand driver behind this growth is relatively affordable entry prices combined with significantly improved public transport connections and spillover interest from buyers priced out of more central areas like NoLo and Isola.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Milan.
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Milan as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Milan goes: renovated energy-efficient apartments first, followed by new-build apartments, then small units like studios and one-bedrooms, with larger unrenovated properties trailing behind.
The top-performing category, which is renovated apartments with good energy ratings, has appreciated by approximately 4 to 5 percent over the past year in well-connected Milan neighborhoods.
The main reason this property type is outperforming is simple: buyers in Milan increasingly prioritize turnkey homes that won't require expensive renovations or face future regulatory pressure around energy efficiency.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Milan?
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- How much should you pay for a studio in Milan?
- How much should you pay for a loft in Milan?
What is driving property prices up or down in Milan as of 2026?
As of early 2026, the top three factors driving Milan property prices are the chronic shortage of quality housing in desirable areas, major regeneration projects like the Scali railway yards redevelopment, and the spillover effect from an expensive rental market pushing tenants toward buying.
The single factor with the strongest upward pressure on Milan property prices remains supply scarcity in central and semi-central neighborhoods, where demand consistently outstrips the available stock of modern, efficient homes.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Milan here.
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What is the property price forecast for Milan in 2026?
How much are property prices expected to increase in Milan in 2026?
As of early 2026, Milan property prices are expected to increase by approximately 3.5 percent over the course of the year, continuing the city's pattern of steady appreciation.
Forecasts from different analysts range from a conservative 2 percent (from portal-based projections) to a more bullish 7 percent (from independent research institutes), with most estimates clustering around 3 to 4 percent for Milan.
The main assumption underlying these forecasts is that mortgage rates will remain stable or decline slightly while Milan's supply of quality housing stays constrained, keeping demand pressure elevated.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Milan.
Which neighborhoods will see the highest price growth in Milan in 2026?
As of early 2026, the Milan neighborhoods expected to see the highest price growth are Precotto-Turro, Viale Certosa-Cascina Merlata, and Bicocca-Niguarda, all benefiting from improving infrastructure and relative affordability.
These top neighborhoods are projected to see price growth of 5 to 7 percent in 2026, roughly double the city average.
The primary catalyst driving expected growth in these areas is the combination of new metro access, ongoing regeneration projects, and strong renter demand that often converts into buyer demand when prices seem more accessible.
One emerging neighborhood that could surprise with higher-than-expected growth is Corvetto-Rogoredo in Milan's southeast, where affordability, transport links, and redevelopment spillovers are starting to attract more attention.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Milan.
What property types will appreciate the most in Milan in 2026?
As of early 2026, the property type expected to appreciate the most in Milan is turnkey renovated apartments with good energy performance, particularly in neighborhoods that are still improving but not yet fully priced in.
This top-performing property type is projected to appreciate by 4 to 6 percent in 2026, outpacing the broader Milan market average.
The main demand trend driving this appreciation is that Milan buyers increasingly want to avoid renovation hassles and future energy upgrade costs, so they pay a premium for homes that are already efficient and move-in ready.
On the flip side, large apartments with poor energy ratings and significant renovation needs are expected to underperform in Milan because buyers heavily discount these properties for the work and expense required to bring them up to standard.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Milan in 2026?
As of early 2026, interest rate trends are expected to have a moderately supportive effect on Milan property prices, as stable or slightly declining mortgage rates should help maintain buyer purchasing power.
The ECB's main refinancing rate currently sits around 2.5 to 3 percent, and most forecasters expect mortgage rates in Italy to remain stable or edge slightly lower through 2026.
As a general rule in Milan, a 1 percent change in mortgage rates can shift buyer affordability by roughly 10 percent, meaning lower rates allow buyers to stretch their budgets while higher rates compress what they can pay per square meter.
You can also read our latest update about mortgage and interest rates in Italy.
What are the biggest risks for property prices in Milan in 2026?
As of early 2026, the three biggest risks for Milan property prices are an affordability shock if interest rates rise unexpectedly, execution delays on major regeneration projects that could disappoint price expectations, and a broader eurozone economic slowdown that hurts buyer confidence.
The risk with the highest probability of materializing in Milan is the affordability ceiling, where prices simply reach a point that even motivated buyers cannot stretch to meet, causing transaction volumes to slow before prices adjust.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Milan.
Is it a good time to buy a rental property in Milan in 2026?
As of early 2026, it is generally a reasonable time to buy a rental property in Milan, particularly if you focus on well-located, efficient apartments in neighborhoods with strong tenant demand rather than chasing the lowest price per square meter.
The strongest argument in favor of buying now is that Milan's rental market remains tight, with high occupancy rates and steady rent growth supporting reliable income streams for landlords who buy the right type of property.
The strongest argument for waiting is that prime area prices feel stretched and rental yields are compressed, so buyers paying top euro in central Milan may see better opportunities emerge if the market softens or new supply arrives.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Milan.
You'll also find a dedicated document about this specific question in our pack about real estate in Milan.
Buying real estate in Milan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Milan?
What is the 5-year property price forecast for Milan as of 2026?
As of early 2026, cumulative property price growth in Milan over the next 5 years is expected to reach approximately 15 percent in nominal terms, translating to a solid but not spectacular increase.
The range of 5-year forecasts for Milan spans from a conservative 10 percent (if growth moderates significantly) to an optimistic 25 percent (if regeneration projects and economic conditions outperform expectations).
This works out to a projected average annual appreciation rate of around 2.5 to 3 percent per year for Milan property over the next 5 years.
The key assumption most forecasters rely on is that Milan will remain Italy's economic engine with constrained housing supply, keeping structural demand pressure intact even as growth rates normalize from recent highs.
Which areas in Milan will have the best price growth over the next 5 years?
The top three Milan areas expected to have the best price growth over the next 5 years are the NoLo corridor (including Precotto-Turro), the Porta Romana-Ripamonti zone benefiting from Olympic legacy, and the Viale Certosa-Cascina Merlata area where major regeneration is underway.
These top-performing areas are projected to see 5-year cumulative price growth of 20 to 30 percent, meaningfully outpacing the city average of around 15 percent.
This longer-term forecast largely aligns with our shorter 2026 predictions, though Porta Romana's strength becomes more pronounced over 5 years as the post-Olympics legacy housing actually delivers and the neighborhood identity matures.
The currently undervalued Milan area with the best potential for outperformance over 5 years is Corvetto-Rogoredo, where today's lower prices, good rail connections, and proximity to redevelopment zones create room for catch-up growth.
What property type will give the best return in Milan over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Milan is mid-sized apartments (one to two bedrooms) that are energy-efficient or easily upgradable, located in improving but not yet fully priced neighborhoods.
The projected 5-year total return for this top-performing property type, combining appreciation and rental income, is estimated at 25 to 35 percent, assuming careful location selection within Milan.
The main structural trend favoring this property type is that it hits the sweet spot of Milan's demand: liquid enough to sell easily, rentable to a wide tenant pool, and positioned to benefit from the growing premium for energy-efficient homes.
For buyers who prioritize lower risk over maximum return, larger family apartments in established Milan neighborhoods offer a good balance, as they may appreciate more slowly but carry less volatility and maintain consistent tenant demand.
How will new infrastructure projects affect property prices in Milan over 5 years?
The top three major infrastructure projects expected to impact Milan property prices over the next 5 years are the Scali railway yards regeneration (especially Farini and Romana), the completed M4 metro line enhancing cross-city connectivity, and the Olympic Village conversion to permanent housing in Porta Romana.
Properties near completed infrastructure projects in Milan typically see a price premium of 5 to 15 percent compared to similar homes further from the new amenities, with the effect strongest in previously underserved areas.
The specific Milan neighborhoods that will benefit most from these infrastructure developments include Farini and surrounding streets, Porta Romana and Ripamonti, and areas along the M4 corridor from Linate airport through the city center to San Cristoforo.
How will population growth and other factors impact property values in Milan in 5 years?
Milan's population is projected to grow modestly at around 0.3 to 0.5 percent annually, but the more important impact on property values comes from who needs housing: young professionals, students, and international workers who drive demand for specific property types and locations.
The demographic shift with the strongest influence on Milan property demand is the continued growth of single-person and two-person households, which increases demand for smaller, well-located apartments rather than large family homes.
Migration patterns, both domestic (from other Italian regions) and international (students and professionals), are expected to keep rental demand elevated in Milan, which in turn supports purchase prices as investors compete for income-producing properties.
The property types and areas that will benefit most from these demographic trends in Milan are studios and one-bedroom apartments near universities and business districts, as well as efficient two-bedroom units in transit-connected neighborhoods attractive to young couples.
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.
What is the 10 year property price outlook in Milan?
What is the 10-year property price prediction for Milan as of 2026?
As of early 2026, cumulative property price growth in Milan over the next 10 years is expected to reach approximately 30 percent in nominal terms, reflecting the city's position as Italy's most resilient and demanded housing market.
The range of 10-year forecasts for Milan spans from a conservative 20 percent (if structural challenges emerge) to an optimistic 45 to 50 percent (if Milan continues to outperform and regeneration delivers fully).
This translates to a projected average annual appreciation rate of around 2.5 to 2.7 percent per year for Milan property over the next decade.
The biggest uncertainty factor in making 10-year property price predictions for Milan is the long-run interest rate environment, as sustained higher rates would compress affordability while a return to very low rates could reignite stronger price growth.
What long-term economic factors will shape property prices in Milan?
The top three long-term economic factors that will shape Milan property prices over the next decade are the interest rate regime (which directly affects affordability), the success of major regeneration projects in adding quality supply, and Milan's continued role as Italy's hub for high-value employment.
The single long-term economic factor with the most positive impact on Milan property values is likely to be the city's deepening position as a European business and innovation center, which attracts talent and keeps housing demand structurally elevated.
The single long-term economic factor that poses the greatest structural risk to Milan property values is a sustained period of higher interest rates, which would compress what buyers can afford and potentially lead to a correction in areas where prices have run ahead of fundamentals.
You'll also find a much more detailed analysis in our pack about real estate in Milan.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Milan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Immobiliare.it | Italy's largest property portal with transparent, long-running price datasets. | We used it to anchor current prices per square meter in Milan and track 12-month changes. We also compared zone-level price gaps across neighborhoods. |
| Idealista | Major European property platform publishing standardized city price indices. | We used it as a second independent price benchmark to triangulate current conditions. We compared it with Immobiliare.it to produce our best estimate. |
| Immobiliare.it Insights | Dedicated research unit from a top Italian proptech group. | We used it to anchor our 2026 growth rate forecast for Milan. We also identified specific neighborhoods expected to grow fastest. |
| Bank of Italy Housing Survey | Italy's central bank collecting recurring survey evidence from market intermediaries. | We used it to describe market momentum, discounting, and liquidity conditions. We cross-checked whether price moves are broad-based or localized. |
| ISTAT House Price Index | Official national statistics agency publishing the standard HPI definition. | We used it to frame Italy-wide context around housing prices. We treated it as the official macro backdrop for our 2026 analysis. |
| Eurostat | EU's official statistics body explaining HPI methodology and comparability. | We used it to explain what a house price index captures. We referenced it to keep our methodology section defensible. |
| Bank of Italy Interest Rates | Official source for Italian bank interest-rate series including household borrowing. | We used it to link mortgage-rate direction to affordability in Milan. We grounded our interest rate impact section in official data. |
| ECB Staff Projections | ECB's official macro projection set used widely by markets and policymakers. | We used it to frame 2026 growth and inflation expectations for the euro area. We relied on it to justify our forecast range. |
| Comune di Milano | City government's official reference for major redevelopment areas. | We used it to connect price pressure to supply changes and neighborhood transformation. We treated it as a real economy driver behind neighborhood divergence. |
| AMAT Milano | Official mobility agency documenting scope and timeline of the M4 line. | We used it to identify where accessibility improved in Milan. We incorporated this into our discussion of which areas benefit most. |
| Olympics.com | Official Olympic site describing the village and legacy intent. | We used it to ground the Olympics legacy housing narrative around Porta Romana. We treated it as a catalyst rather than a guarantee of price rises. |
| Scalo Porta Romana | Official project site for one of Milan's most market-relevant redevelopment zones. | We used it to explain what is being built in the area. We tied it to neighborhood-level demand for newer, energy-efficient stock. |
| Scenari Immobiliari | Long-standing Italian real estate research institute widely cited by institutions. | We used it as a bull-case forecast input including a Milan-specific number. We triangulated it against portal-based forecasts before setting our final estimate. |
| Nomisma | Major Italian economic consultancy with longstanding real estate observatories. | We used it to support the story around demand pressure and rental spillover. We treated it as a macro and behavioral driver behind Milan's resilience. |
| FS Sistemi Urbani | National rail group's urban regeneration arm documenting scope and milestones. | We used it to understand timing and scale for yard redevelopments. We separated near-term hype from mid-term delivery expectations. |
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If you want to go deeper, you can read the following: