The first half of 2021 was characterized by an encouraging trend for the global real estate market, with cities of varying degrees of attractiveness in terms of investment.
Italy, with the prime location of Milano, represents one of the pillars of the real estate landscape, a dynamic market is more profitable than global competitors, this thanks to the canons of lease on average lower content and higher yields.
This is the scenario that emerges from the new study carried out by WCG Research Department – World Capital Group, which analyses the 2021 H1 real estate values (rentals and yields) of the logistics, office and retail asset classes of Milano, comparing them with those found in other cities such as Berlin, Paris and London.
Focusing on the city of Milano, it emerges that the logistics sector today represents an important investment opportunity.
In terms of real estate values, in the Milan area the rental rate varies between €53/m2/year and €61/m2/year, while the average net yield is around 4-5%.
The situation is different in London, where rental values for logistics properties are rising, reaching €150-180/m2/year, while returns are lower than the Milanese market, with a percentage that doesn't exceed 3,75%.
Even in the office sector, the City of Milan is rewarded, as confirmed by the data which clearly shows how, with the same low rents as other European cities, Milano records more attractive returns in real estate investments.
In fact, the surveys carried out by the World Capital Research Department show that investing in the office sector is Milano It yields an average of 3,5-4%, while in cities like Paris or Berlin the yield range drops to 2,5-3%.
Moving on to the retail market, the recent reopening of stores has certainly had a positive impact on the sector, but investors' attitude is still far from pre-pandemic. However, the retail asset class is starting to show the first signs of improvement.
Focusing on real estate values, in this case too Milano It confirms itself as a very high-performing location with rental rates ranging between €600 and €700/m2/year and an average net yield of 4-5,5%.
The scenario is completely different for foreign markets, such as in London, where rental values for shops can reach up to €1.800/m2/year, or in the city of Berlin, where yields do not exceed 3%.
“From our analytical work we note how Milano, but in general the Italian market, confirms itself as a place of great interest as regards the real estate panorama - declares Andrea Faini, CEO of World Capital The factors favoring investments in the national real estate sector, especially in prime locations like the Lombardy capital, are undoubtedly the dynamic market, more affordable rents, and more profitable returns compared to other European locations. This applies both to asset classes that have responded positively to the pandemic, such as logistics, and to more vulnerable segments, such as the retail market, which are nevertheless moving towards a gradual recovery.