Milan and Lombardy: Pivotal area of the Real Estate
Optimism is spreading around Europe’s real estate sector, thanks to an important improvement of the macroeconomic outlook for the Eurozone.
In Italy, Milan and Lombardy Region holds most of the core potential of this industry. Most professionals are positive about the future of the city as a promising investment destination, focusing on its developing projects.
“Milan is on the map of major locations for capital worldwide. Real estate decisions now are based much more on cities than on countries, which is why there is an alignment of cap rates here, comparable to other European cities,” says an expert player.
Moreover, the well-connected Lombardy region also handles the largest share of Italy’s distribution traffic, and cross-border investors are keen because of the Italian logistics market rate of growth.
With a demand that exceeds supply and a strong growth, veteran investors are more interested in taking some risks with respect to last year’s attitude. Even if, brave businessmen, that bought four years ago have been gathering impressive returns.
Nowadays, “the opportunity is to buy core-plus to reposition with active management. There is strong potential in the coming years in Italy to upgrade or transform existing stock for other uses,” says an Italian developer, interviewed by PWC.