Milan 2021: residential and offices, between smart living and smart working

The annual survey of real estate market trends in Milan has been released today by the GVA Redilco & Sigest Research Team, which from this year has added a survey of the city’s office market to its analysis of the residential sector.

The residential sector is extraordinarily dynamic, with the number of transactions in the first nine months of the year (19,399 NTN) even exceeding that for 2019 (19.072 NTN). The research identifies pipeline projects for a total of almost 30,000 new units: in addition to the traditional home buyers market, there is new rental product to satisfy contemporary living needs such as Build to Rent.

The picture that emerges from the survey of on-market housing supply features a reduction in product (620 units, -54% compared to 2020) and a 57% contraction in total stock, leading supply in June 2021 to the lowest ever level recorded (644 units, -26% on 2020). Considering average take-up in the last 3 years, a possible scarcity of product can be expected over the coming 12 months.

The office market is experiencing strong growth and a boom in demand for new hybrid concepts. Despite the over 1,300,000 sqm in the pipeline for completion by 2024, the supply of Grade A/A+ product is still scarce compared to a demand which increasingly brings to the foreground sustainable, technologically advanced product with attention paid to wellbeing.