Prices are holding up despite the ECB


The first effects of the ECB’s interest rate hike decisions are beginning to make their presence felt in the real estate market. However, the valuable segment to which this belongs is saved Luxury real estate. This particular segment It doesn’t depend on creditworthiness and buyers They were not discouraged by the tariff increase. In other words: demand remains high despite a supply that is not always sufficient in terms of either quantity or quality.

This, in short, is the evidence that emerges from the data Market report Milan/Romethat was made by Engel & Völkers in collaboration with Nomisma.

The prestigious real estate market in Milan

He thought about taking stock of the situation regarding the evolution of luxury sales Luca DondiChairman of the board of Nomismawho explained that

Although indicators in the real estate market are deteriorating overall, the luxury market continues to show good vitality. The upper end of the market, which does not rely on credit and is therefore not discouraged by the rise in interest rates, continues to enjoy sustained demand. On the other hand, the proportion of transactions that cannot function without bank support is decreasing.

The report, prepared by Engel & Völkers, focuses on the prestigious real estate market in Milan and highlights in the first quarter of 2023, following the excellent performance in 2022, There was a serious setback: a -22.9% compared to the first quarter of 2022. Looking at what is happening in the main cities observed, the decrease is recorded in the Lombard capital second only to that of Bolognawhere it settled at -23.9%.

In general, the Milan real estate market seems to be ahead: there are now fears among experts that this trend could also affect other national markets over the course of the year. The negative trend is already affecting the rest of Italy, where a negative change is being recorded.

Prices in Milan

If the number of sales has decreased, the situation changes if we focus on prices. which recorded considerable stability. The increasingly rising interest rates had a smaller impact on the prestigious real estate market It runs New construction segment. The latter have become more interesting following recent evidence from Europe on the energy class of buildings.

Prices generally remained stable due to the Italian real estate market reacts late to various economic changes. But also because the intensity of demand cannot be found in a more cyclical perspective an appropriate response to the product shortage. However, it should be noted that the sales times and the average discounts granted are increasing: the market is starting to lose its importance.

Potential buyers

But who are the potential buyers shaping the luxury real estate market in Milan? From the study by Engel & Völkers An exact photo is described:

The loss of purchasing power of families caused by inflation has further widened the gap between real demand, which has immediate means of purchase, and potential demand, which depends on credit. The Milan luxury market is therefore now dominated by transactions worth over 1.5 million euros that do not require financing, facilitated in many cases by the favorable tax regime for returns from abroad. Demand is always directed towards semi-central, if not peripheral, areas, as long as they are well connected in terms of transport. The center remains very attractive for small investors from outside Milan or young adults attracted by the nightlife.

Engel & Völkers’ outlook underlines that this will be the case in the second half of 2023 a declining trend in transactionscombined with a stationary development of average prices in all districts.

The prestigious real estate market in Rome

As for the luxury real estate market in Rome in the first half of 2023, Demand remained essentially stationary. Prices rose and sales fell moderately.

By photographing the city’s neighborhoods Old Town have trades The downward trend was confirmed. This currently has no particular impact on prices, which continue to remain stable or increase.

interest in theAventine, a secluded area in the city center, as well as confirmation of the most prestigious locations. The focus is primarily on investment purchases Trastevere and Testaccio districts, very central and characterized by intense nightlife and therefore attractive for short-term rentals. There Foreign demand, especially from Northern Europe, is stable Compared to the previous semester, there was greater interest in real estate in prestigious areas.


In the most exclusive neighborhoods, prices for renovated properties are high at 10,000 euros per square meter. In the area Prati Vatican The average price range for newly renovated houses is confirmed to be between 4,200 and 7,000 euros per square meter. TO Northern RomeAverage prices show a stable trend semi-annually, with the exception of Parioli, Trieste-Salario and Talenti-Monte Sacro, where there was an increase. Here the costs vary between 2,700 and 7,000 euros per square meter for new or renovated houses.

What buyers are looking for

Buyers moving to the northern region are looking for properties with character large size and the presence of outdoor areasthat the area offers and the large green spaces. However, the requests in the western zone relate to green spaces,
Foreign demand, which comes mainly from Northern Europe, is mainly aimed at properties in prestigious areas such as Pinciano, Parioli and Trieste as well as EUR, which is one of the areas most sought after by foreign buyers thanks to the various redevelopment initiatives in the neighborhood the acquisition of real estate for investment purposes.

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