Milan: Even in the face of the health crisis, which has deeply affected many sectors, the market for luxury homes is growing. The Savills World Cities Prime Residential Index certified this fact on the basis of data collected in 30 cities around the world, including Rome and Milan.
In 2021, it is expected that the values of luxury properties in Milan will increase by an average of 1.6%. And in some areas of the city this trend has already emerged from the second half of 2020, when an increase of 0.8% was noted.
Milan seems to be holding up better than Rome when it comes to the most expensive segment of the residential sector. For luxury homes in Milan, an average of 13,500 euros per square meter is the norm, while in Rome the drop in value per square meter has reached 1.9%. But it is not the only European city that is struggling. Lisbon and Madrid will probably face the same percentages, on top of the decrease already seen in 2020: 5.3% and 2.3% respectively. Paris, on the other hand, has seen a growth of 2% in 2020.
The most expensive luxury homes to buy remain in Hong Kong, despite the fact that the city is among those where the market trend has marked the greatest decline, also due to the unstable political landscape of the last two years. Prime values remain 78% higher than those of New York, but a sharp drop is expected by 2021. In the rest of the USA, on the other hand, the situation is improving thanks to favourable interest rates and a healthy stock market. The metropolis with the lowest values is Kuala Lumpur in Malaysia. Mumbai, which also suffered from oversupply at a time when the country had to deal with the serious consequences of the pandemic, also rated poorly in luxury property value.