House Hunting in Italy: See-Through Floors in Milan for $1.8 Million

A Milanese Three-Bedroom Townhouse for $1,83,000,000 (1.6 MILLION EUROS)

Near Milan’s financial and fashion heart lies this three-bedroom loft-style apartment, famed for its art nouveau and neoclassical architecture in Porta Venezia, a cosmopolitan neighbourhood.

Since it was converted from an atelier in the rear courtyard of an apartment building in the early 20th century, this 3,552 square foot, three-story home has huge glass panels between the beams of its wood plank floors on both its upper and lower levels.

Described by Diletta Giorgolo, head of residential for Italy Sotheby’s International Realty, the listing agency, the loft’s floating mood and light are the goal of the design. The glass on the ground floor provides a glimpse of the basement’s heated pool and spa.

“It’s not your usual family house,” said Ms. Giorgolo. “It’s more for a select group of creative types, such as architects and fashion designers.”

The main building, which has 14 flats, is the only way to get in. A floor-to-ceiling, frosted mullioned central window is the centrepiece of the ground-floor living area. On the other side of the room, tucked beneath the second-floor loft’s transparent ceilings, is a quiet sitting space with a fireplace. Sale includes Igor Mitoraj’s sculpture, as well as a sofa and a fireplace.

There are wood cabinets and matching cabinetry for the refrigerator, as well as a curved glass countertop embedded in cement in the kitchen. The kitchen is adjacent to a powder room and a laundry/utility room.

The principal bedroom suite boasts a mirrored wall behind the bed and a walk-in closet thanks to a wood staircase with exposed treads and a glass railing. The living room can be seen from below thanks to glass-paneled floors. From the living area, you can see out onto a semicircular balcony that has a curving metal railing and horizontal balustrades.

The primary bedroom serves as a stepping-off point for the other two bedrooms, both of which feature private bathrooms. Bathrooms with showers are located in each of the rooms. The third bedroom is now being used as a work space.

The vaulted brick-barrel ceiling and teak floor of the basement can be found via a wooden staircase. Swimming pool and spa are separated from the sauna and rest area by an open roof that may be seen through.

Attractions including ethnic eateries, boutiques and a bohemian air can be found on the neighborhood’s street Via San Gregorio. More than 350 apparel businesses may be found on the Corso Buenos Aires, which is Italy’s longest shopping strip. Milan’s Central Station and Giardini Pubblici Indro Montanelli, the city’s largest public park, are just a few blocks away from the neighborhood’s mediaeval city gate, Porta Venezia. About 45 minutes by vehicle from Milan Malpensa Airport.

The following is an overview of the current market conditions.

The housing market in Milan, the city of northern Italy’s Lombardy region, is one of the most costly in Italy. With magnificent facades and secret gardens, the residential landscape includes everything from palazzi and townhouses to villa and cottages. Bohemian enclaves are located within the mediaeval walls of the city. Even if the epidemic has slowed the market for new construction, the city’s appearance is changing.

Foreign purchasers love the city’s new developments because they can find international schools, expat communities, and buildings with amenities, said Ms. Girogolo.

The rooftops of the Bosco Verticale, a solar-powered twin-tower high-rise in the redeveloped Porta Nuova district, are covered in trees and vegetation. The mixed-use CityLife redevelopment neighbourhood nearby comprises, among other things, a meandering residential complex with seven buildings ranging in height from five to thirteen stories, and a twisted 44-story tower designed by Zaha Hadid.

According to Lionard Luxury Real Estate’s marketing manager Arianna Giovanni, “the Milan market has been continuously rising, especially since 2016.” Despite the fact that “inventory has sensibly diminished” due to the pandemic, transactions have continued with video property tours and contracts completed through proxy, according to her.

There has been a shortage of penthouses with good terraces, she noted. “People these days are looking for homes with a yard or two,” says the report. As well as self-sufficient country estates and villas outside the city limits that are within commuting distance of downtown.

Prime two-bedroom, two-bath apartments and villas in the most desirable locations can sell for between 1.3 million and 8 million euros ($1.49 million and $9.1 million), Ms. Giovanni said, depending on the condition and location of each unit.

Some 6,000 sales were made in Milan in the first quarter of 2021 “as proof for the resurgence of the Italian real estate market,” stated Ms. Girogolo. In pre-Covid eras, “it has even been higher than before.” If Sotheby’s internal data is to be believed, the median price for houses sold this year is roughly 2.5 million euros ($2.86 million), with the highest transaction coming in the Quadrilatero high-fashion zone at 11.5 million euros ($13.2 million).

According to research from the market and consumer data portal Statista.com, a buyer may expect to pay close to $9,400 euros per square metre in September 2021 in the city’s historic centre and most costly district.

Knight Frank Italia managing director Antonio Zagaroli reported that Milan’s housing market grew by more than 10% between the second quarter of 2019 and the second quarter in 2020. While the yearly growth rate for 2021 appears to be dropping, the Knight Frank Global Residential Cities Index shows that in the first half of the year, prices rose by 2.6 percent,” he said.

Milan’s hosting of the 2026 Winter Olympics is expected to boost the market over the following three to four years, according to Mr. Zagaroli. There are plans to transform a disused railway yard into an eco-friendly mixed use zone during the Olympic Games, with athletes’ housing converted into student and affordable housing after the Games, while the Olympic Village would become a self-sustaining neighbourhood.

Following the implementation in 2016 of an annual flat tax of 100,000 euros ($114,459), Mr. Zagaroli claims that this is helping to attract high net worth individuals from Europe and Asia who identify Italy as their primary residence and earn an annual income of more over 250,000 euros ($286,000).

Moreover, international retirees are eagerly awaiting the introduction of a tax bait, which would guarantee a 7 percent income tax rate for ten years on income generated outside of the country. Girogolo expects “many more” sales next year if there is no new Covid variation, citing the flat tax as a reason for the increase.

What Do Milanese People Spend Their Money On?

Covid-19’s travel restrictions, according to Ms. Girogolo, were a factor in the majority of 2020 customers being Italians. That changed when the travel limitations were abolished.

“Clients are coming from the most unexpected places these days,” Ms. Giovanni added, citing Australia and Taiwan as two such examples.

According to Knight Frank Italia CEO Alessandro Riboni, many people are relocating to Milan from Paris and London because of the city’s “extremely good quality of life,” which includes easy access to the sea, mountains, and lakes.

Purchasing the Essentials

In Italy, foreign ownership is permitted. It is the buyer’s responsibility to hire and pay for the notary public who conducts the closing. According to Ms. Giorgolo, a lawyer isn’t necessary for customers who are buying as individuals and aren’t planning on relocating to Italy.

In addition to the purchase price, stamp duties, broker fees, and notary fees might add 7% to 9% to the overall cost.

On top of the purchase price, new construction and recently refurbished properties from developers are subject to a 10 percent to 22 percent value-added tax, Ms. Giovanni noted.

Ms. Giovanni noted that finance can be difficult to come by. There is a risk to our banks because of current restrictions because their main source of income is outside of the country,” she stated.

Languages and currencies used on various websites

This currency has a value of one euro (1 euro = $1.15).

Taxes and fees are included in the price of a ticket.

The cost of upkeep is 300 euros per month ($341).

According to Ms. Girogolo, property taxes range from 0.4 percent to 0.7 percent of the value of the property, depending on the location and the type of property.

A stamp duty of 6,000 euros ($6,890) would be paid by the buyer if the townhouse is purchased as a primary residence. According to Ms. Girogolo, the stamp duty or purchase tax for a second home is roughly $36,000.

Contact

Italy Sotheby’s International Realty, 011-39-333-677-6473; sothebysrealty.com is Diletta Girogolo’s office in Italy.

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