23/05/2024 - The substantial halt of new development initiatives in Milan is already affecting the many urban regeneration projects underway and planned for the city. According to Scenari Immobiliari, the investment potential had been estimated at over twelve billion euros for the residential sector alone by 2035 (19.5 billion euros when including all other asset classes). Added to this are another twenty-six billion euros in spillover effects on the Milanese economic system (from furniture to services), not to mention the consequences for employment in the construction sector and municipal revenues estimated between 50 and 70 million euros per year in fees and contributions. These are some of the findings emerging from the SECOND “OSSERVATORIO SULL’ABITARE” – Winning Cities: Market and Neighborhoods for Residential Demand of Families, produced by Scenari Immobiliari and Abitare Co., and presented this morning in Milan during the FORUM DELL’ABITARE.
“These investments are at risk,” said Francesca Zirnstein, General Director of Scenari Immobiliari, “and this affects the expectations of international investors, who have purchased around forty billion euros’ worth of properties in Milan over the past ten years. They are now becoming more cautious about new developments and are beginning to look for opportunities outside the city or elsewhere. And we must not forget that the shortage of supply in the residential market leads to a further increase in the prices of existing properties.”
“Milan and its hinterland continue to consolidate their role as an attractive market for new residential construction despite the administrative uncertainty which, noticeably, since the second half of 2023, has been affecting and slowing down, or even halting, the major real estate development projects in the city,” said Giuseppe Crupi, CEO of Abitare Co. “We are finding that today some developers are no longer investing in Milan or, at best, are adopting increasingly cautious approaches, which further limits the future housing supply in the short and medium term—while demand, fortunately, remains lively. A demand for new homes, not only high-end, which particularly values investments related to energy consumption, environmental impact, and shared services for residents.”
For information:
Abitare Co. | Tel. +39 02 48.95.84.16
Via Savona, 52 – 20144 Milan (MI)
info@abitareco.it | www.abitareco.it
