Milan, March 12 – Milan has emerged as a leading global hub for luxury real estate investments, securing the second position after Madrid in the ranking of preferred destinations for ultra-high-net-worth individuals. This notable rise is largely due to the attractive flat tax scheme for foreign residents, the allure of the Italian way of life, and substantial investments across various sectors in the city.
Milan’s Ascendancy in Global Luxury Real Estate
According to Thibault de Saint Vincent, founder of Barnes, a prominent luxury real estate group, Milan’s appeal to global wealth is undeniable. “Milan is climbing to the podium of global wealth destinations, thanks to the advantages of the Flat tax and the charm of the Italian way of life,” de Saint Vincent stated in an interview with L’Economia del Corriere. The city has surpassed many traditional luxury markets, becoming a top choice for those looking to invest in high-end properties.
The Barnes Global Property Handbook highlights that while Milan leads the Italian cities, Rome also features prominently in eighth place, and Florence has significantly risen from 34th to 22nd position. This trend indicates a broader interest in Italian metropolitan areas, alongside a growing appreciation for former holiday destinations now valued as places of residence, such as Miami and Mallorca.
Where the World’s Wealthy Reside and Invest
De Saint Vincent further elaborated on the demographics of ultra-high-net-worth individuals, noting that nearly three-quarters of them reside in just ten countries. The United States alone accounts for approximately 200,000 of these individuals, marking a 21.2% increase in the last year. Other significant concentrations of wealth are found in China, Germany, the United Kingdom, and Japan. Italy itself is home to about 12,000 super-rich individuals, a 6% increase from the previous year.
Factors Driving Milan’s Appeal
The influx of wealthy investors into Milan, particularly from the UK and France, is driven by several compelling factors. Marco Garbuglia, managing partner at Barnes in Milan, explained, “From France and London, there is significant demand. We are a French group, and many want to leave France for tax reasons but also for the political mood.” The flat tax for foreign residents is a major draw, alongside the city’s robust investment volumes in hospitality and dining, its high quality of life, and its compact, international metropolis feel, often described as ‘walking distance.’
Furthermore, Italy’s perceived political stability in a turbulent geopolitical landscape contributes to its attractiveness as a “solid haven.” The legacy of Expo Milan continues to position the city on the global investment map, a status that the upcoming Winter Olympics is expected to further solidify.
Preferred Locations and Investment Budgets
For global elites landing in Milan to purchase homes, certain areas are particularly sought after. While a small segment still targets the Quadrilatero della Moda, the residential zone stretching from Via Vincenzo Monti to Corso Magenta, Via Meravigli, or Pagano is currently in high demand. Foreign investors are also beginning to explore other unique areas, such as Via Tortona, especially when the right property becomes available.
Investors typically seek properties ranging from 250 to 350 square meters, with budgets between 4 and 5 million euros. These buyers often include young families with teenagers or couples over 70 who have sold their businesses in France and wish to host their families in Milan.
The luxury real estate market in Milan is not just a reflection of financial investment but also a testament to the city’s growing global stature, offering a blend of economic opportunity, cultural richness, and an enviable lifestyle.
