In 2018 Milan reported investments in non-residential assets for 3.1 billion euro, 2.1 billion of which only in offices. According to Bnp Paribas, Milan attracted 60% of the national investments in the office segment, showing the big gap between the city and the rest of Italy. In a country dominated by economic stagnation and political uncertainties, the efficient administration of the city of Milan stands out to the eyes of international investors.
Offices in Milan have a vacancy rate equal to 5%, while in London and Paris is 10.6%, due to the significant presence of low-quality assets built during the construction boom between the Eighties and the Nineties. The industry looks now towards modern, connected and energy efficient buildings, as in the case of Hines, which announced investments in Milan for 3 billion euro by 2021.
Moreover, new opportunities may arise in the case Milan is chosen to host the winter Olympic games in 2026, replicating in this way the success of Expo, as well as an opportunity to promote the city and gain international visibility.
The City of Milan aims at re-investing the profits from the urbanisations works in social housing and public schools for an amount of approximately 600 million euro. Developers need to implement affordable housing as well as luxury residences.