The wealthiest city in Italy and one of the fashion capitals of Europe has the highest prime residential prices per square metre of the four main cities in Italy. Transaction volumes fell by 15.2% in 2023, but pricing was sustained by low levels of supply across the market. A resilient financial and business services sector in Milan has supported increased migration to the city in recent years.

Prices increased by 0.9% over the course of 2023 and stand 6.7% higher than in 2019. A number of new developments have increased the quality of product on offer in the prime market but have also contributed to the increase of prices in the city which now stand at €16,000 per square metre. They have not, however, been sufficient to address the undersupply issues the city faces. While buyers in the city are predominantly Italian, a sizable minority are foreign buyers mainly from the UK, Germany, Switzerland and the United States. International appeal is also bound to rise further with the Winter Olympic Games taking place in the city in 2026.

The rental market in Milan has seen significant levels of growth, increasing 3.0% over the course of 2023 and 14.6% on pre-pandemic levels. New migrants to the city and would-be purchasers deterred by a competitive sales market and high interest rates have all contributed to this growth.

Milan shows positivity through 2024, with forecast price growth up to 1.9% for the year. As inflation continues to ease and interest rates have the potential to see cuts, the market will continue its growth, though the timing of any potential cuts will more than likely translate to a wait-and-see approach for prospective buyers. Italian families and also international investors are buying in real estate to protect their financial investments from inflation by taking advantage of the strong rental market.