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Yes, the analysis of Milan's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Brera? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Navigli or Porta Romana where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Italy Property Pack.
Will property prices increase in Milan in 2025?
Yes, property prices in Milan are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Milan remains one of the hottest cities globally for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Milan’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Milan’s status as a cultural, financial, and fashion hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Milan
Here are some factors suggesting prices could increase:
The ongoing urban regeneration projects in Milan, such as the Porta Nuova and CityLife developments, are enhancing the city's appeal and infrastructure, attracting more buyers and investors, which is likely to drive up property prices.
Milan's strong economic performance and its role as Italy's financial capital continue to attract both domestic and international businesses, increasing demand for commercial and residential properties.
The limited availability of land for new developments in central Milan is constraining supply, which, coupled with steady demand, is expected to push property prices higher.
Milan's reputation as a global fashion and design hub continues to attract affluent buyers and investors, particularly in the luxury property market, contributing to overall price increases.
The city's excellent connectivity, with major transport hubs and proximity to other European cities, makes it an attractive location for both residents and businesses, supporting property price growth.
Government initiatives aimed at promoting sustainable urban development and energy-efficient buildings are likely to increase the value of properties that meet these criteria, driving up overall market prices.
The increasing trend of remote work and digital nomadism is attracting more professionals to Milan, boosting demand for residential properties, particularly in vibrant and well-connected neighborhoods.
Signals pointing to a property price decrease in Milan
Here are some factors suggesting prices could fall:
Rising inflation and living costs are putting pressure on household budgets, potentially reducing the purchasing power of middle-income buyers and dampening demand for mid-range properties.
Higher mortgage interest rates are making it more challenging for buyers to secure affordable financing, which could slow down the property market, particularly affecting first-time buyers and those looking for investment properties.
Economic uncertainties, both domestically and globally, could impact investor confidence and lead to a more cautious approach in the property market, potentially slowing down price growth.
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If property prices go up in Milan, how much would they increase by?
If real estate prices in Milan were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Milan appreciates by approximately 2% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Brera for 850,000 euros today, don't be surprised if it's priced between 875,500 and 909,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Milanese real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (2% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Historical Apartment (60 sqm / 646 sqft) | €900,000 | €918,000 | €945,000 | €963,000 |
| Modern Apartment (75 sqm / 807 sqft) | €1,200,000 | €1,224,000 | €1,260,000 | €1,284,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €2,500,000 | €2,550,000 | €2,625,000 | €2,675,000 |
| Studio (30 sqm / 323 sqft) | €450,000 | €459,000 | €472,500 | €481,500 |
| Loft (80 sqm / 861 sqft) | €1,600,000 | €1,632,000 | €1,680,000 | €1,712,000 |
| Townhouse (150 sqm / 1,615 sqft) | €3,500,000 | €3,570,000 | €3,675,000 | €3,745,000 |
| Investment Property (50 sqm / 538 sqft) | €750,000 | €765,000 | €787,500 | €802,500 |
Everything you need to know is included in our Property Pack for Milan
If real estate prices go up in Milan, which areas are likely to see the biggest increases?
Today, people who want to move to Milan desire the blend of historical charm and modern amenities, which Brera offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Isola has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Milanese market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Brera | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Porta Nuova | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Milan. |
| Navigli | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| CityLife | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Porta Romana | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Città Studi | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Isola | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Bicocca | Medium-High | Its proximity to Milan, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Tortona | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| San Siro | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Storico | High | Upcoming restoration of historic landmarks and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Milan
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Milan?
In 2025, Milan real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Milan, such as Monza and Brianza, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Milan, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Milan's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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