Real Estate Prices in Milan – Forecast for 2025

The real estate market in Milan remains one of the most attractive in Europe, continuing to demonstrate stable price growth. This city is not only Italy’s economic and cultural center but also a key location for real estate investments. In recent years, there has been an increasing interest in purchasing property from both Italian and foreign investors. In this article, we will examine the key factors influencing real estate prices in Milan in 2025 and the prospects for further market development.
Key Trends in Milan’s Real Estate Market
As 2024 comes to an end, analysts note that property prices in Milan continue to rise. The reasons lie in growing demand, limited supply, and the high investment appeal of the city. It is expected that this trend will persist in 2025, with the price per square meter continuing to increase.
Factors Determining Property Prices in 2025
1. Economic Stability and Investment Climate
Milan’s economic development plays a crucial role in sustaining housing price growth. As one of Europe’s leading financial hubs, Milan attracts companies, startups, and investors, creating jobs and improving the standard of living. This, in turn, stimulates demand for housing, especially in the city’s prestigious districts.
Furthermore, favorable mortgage lending conditions make property purchases more accessible to a broad range of buyers. Low interest rates on loans may contribute to a further increase in demand.
2. Shortage of New Housing
One of the key challenges in Milan’s real estate market is the lack of new housing. Due to strict building regulations and a limited number of available land plots, the development of new residential complexes is difficult. This leads to a higher demand for existing properties, pushing prices upwards.
However, in some suburban areas, residential development projects are ongoing, which could slightly alleviate market pressure.
3. High Demand for Luxury Real Estate
Milan has always been a popular destination for affluent buyers looking for luxury properties. In 2025, prices for such properties could reach €25,000 per square meter, particularly in districts like Brera, Porta Nuova, and Cinque Giornate. Demand for high-end real estate from international investors, particularly from the Middle East and Asia, remains strong, further driving up prices.
4. Impact of Short-Term Rentals
Short-term rentals, especially through platforms like Airbnb, significantly influence Milan’s real estate market. Property owners prefer to rent apartments on a daily basis to tourists, increasing property profitability and stimulating price growth. It is expected that this trend will continue in 2025, particularly in central areas of the city.
Property Price Forecast for 2025
Experts predict that in 2025, the average property price in Milan will increase by 5-7% compared to 2024. The highest growth is expected in central areas, where demand remains stable despite high prices.
Forecasted property prices in Milan in 2025:
• Central districts (Brera, Duomo, Porta Nuova) – €12,000 – €25,000 per square meter
• Mid-range districts (Navigli, Loreto, Porta Venezia) – €6,000 – €10,000 per square meter
• Suburban areas (Bicocca, Lambrate, Lorenteggio) – €3,500 – €6,000 per square meter
Tips for Buyers and Investors
1. Choosing the Right District
When buying property, it is essential to consider not only the current price but also the potential for price growth. Central districts remain a stable investment, but their high cost may limit the number of buyers. Suburban areas are currently more affordable, but as infrastructure develops, prices may rise in the future.
2. Investing in Rental Properties
If the goal is to generate rental income, it is worth considering districts with high tourist traffic or student populations. Proximity to universities, business centers, and tourist attractions makes properties more liquid.
3. Using Mortgage Programs
Stable or low-interest rates may make buying real estate in 2025 particularly advantageous. However, before taking out a loan, it is crucial to analyze bank terms and possible future economic changes.
4. Long-Term Perspectives
Milan’s real estate market remains resilient, but potential macroeconomic changes, such as tax reforms or economic crises, could affect prices in the future. Therefore, it is essential to consider long-term risks before making a purchase.
Conclusion
Milan’s real estate market will remain attractive to investors and buyers in 2025. The key drivers of growth are high investment appeal, limited new housing supply, and stable demand. Prices are expected to continue rising, particularly in prestigious districts.
For successful investments, it is essential to analyze the market carefully, choose promising areas, and consider mortgage financing options. Considering all factors, Milan remains one of the best cities in Europe for real estate investments.