Real estate in Rome and Milan: a comparative analysis
Italy is traditionally one of the top ten most popular countries, both in terms of tourism and the demand for real estate among foreigners, and Rome and Milan, according to the latest analytical review of our portal, are the main leaders in terms of the number of requests interested in buying property in Italy on the Russian-speaking Internet.
Buy property in Italy
Such an increased demand for these cities is quite natural: Rome is the capital of the country, the concentration of its political world, and Milan is its center of business and fashion houses. Actively working residents of the country often have to travel from Milan to Rome and vice versa, and the local developed infrastructure and well-established transport network allow you to quickly travel between cities – for example, a modern high-speed train will take a passenger from one point to another in just three hours.
In addition, property taxes in Italy are among the lowest in Europe. Buying property in Italy does not depend on where the housing is located – this will not affect the change in tax rates. Moreover, if real estate is purchased for the purpose of residence and registration, in this case, in addition to the tax on garbage removal (on average 300 euros per year), no other tax is provided and the owner does not bear any additional costs, except for payment for utilities, which also calculated exclusively by counters.
To register in Italy, you need to obtain a residence permit, and buying a property in the amount of 1 million euros will allow foreigners to get a “golden visa” for a period of two years with the right to renew for the next 3 years, after which the property owner receives Italian permanent residence. Today, immigration policy in Italy is one of the most loyal and, subject to certain requirements, obtaining a passport of a member of the European Union is quite realistic, especially when it comes to family reunification.
Rome – the history of the capital
In all, there are 174,120 buildings throughout Rome, of which the vast majority relate to secondary housing. About 70% of city residents live in their own purchased apartments or houses, and 20% live in rented housing. Most of the real estate of the municipality of Rome were built long ago – in the period 1941-1950.
The cost of real estate in Rome is slightly reduced: in November 2018, with the sale of residential real estate, the average cost of 1 sq.m amounted to 3105 euros compared to 3164 euros per 1 sq.m recorded in November 2017 (with a decrease of 1.86% per one year). Over the past 24 months in the city of Rome, not including the provinces, it reached its maximum in January 2017 and amounted to 3257 euros for each square meter.
The most sought after for purchase in the Italian capital are apartments and studios, as well as lofts. The average cost of this type of real estate in Rome is 3600 euros per 1 sq.m. Houses and villas in Rome today are sold on average for 2500 euros per 1 sq.m, while apartments with panoramic views and penthouses will cost the buyer an average of 3400 euros per sq.m. Apartments in middle-class areas are on average sold for 1,200 euros per square meter and above. If you can buy real estate at a bargain price, then such housing has every chance of being profitable with a minimum rate of 6% of income from renting real estate in Rome.
In November last year, the highest price for real estate for sale in Rome was recorded in the Centro Storico area – 8063 euros per sq.m. It is logical that in the same area there are the most expensive objects that can be rented monthly on average 24.20 euros per sq.m. The most unclaimed areas were Lunghezza and Castelverde – an average of 1604 euros per sq.m. The most affordable rental in Rome was recorded in the areas of Borghesiana, Finocchio – 9.05 euros per 1 sq.m.
Milan is a business center
According to the latest analysis of HomesOverseas.ru for queries in the Yandex search engine, Milan is a clear leader in Italy: if in the third quarter of 2018 the number of search queries in Rome amounted to 3383, then the phrase “real estate in Milan” was requested 6446 times. Most often, buyers are supposed to purchase real estate in the range from 250,000 to 500,000 euros, and the vast majority are apartments.
More than 15% of real estate in Milan is the property of foreigners – real estate is acquired in order to realize the possibility of permanent presence in one of the important strategic centers of the world, as well as for profitable investment. Moreover, every tenth housing transaction in this city is carried out through lending. In general, the real estate market of Milan is the most dynamic throughout Italy.