Luxury real estate in Milan is getting a big boost thanks to an influx of London bankers.
In the wake of the controversial Brexit decision that led to the UK leaving the EU, a record number of European financial offices have moved from London to other capitals across the Continent – and many of those firms are looking forward to a new home in the northern Italian city.
The stability of Milan, and Italy in general, from the global financial crisis is drawing executives to the area, in addition to its proximity to other international business centers such as Frankfurt. Generous tax breaks from the Italian government and an increase in sprawling urban development projects — as well as a lower cost of living — also helped workers tighten up the metropolis, according to Bloomberg.
Due to the crowds in the city, the value of Milan’s luxury real estate rose 25 percent in just six months, ending last November, to more than $6.3 billion – a significant increase from 2019 to 2021, when the average the price of luxury properties alone went up by 2 percent. As a result, housing in popular neighborhoods is highly competitive: the typical luxury home will only stay on the market for just over two months on average, a shorter period than before the Covid-19 lockdowns began.
According to the European Banking Authority (EBA), the exodus of London bankers has contributed to the increase in the number of highly paid financial workers across Europe, as a record 1,957 workers earned more than $1.08 million (€1 million) last year. Since Brexit, the EBA no longer includes the UK in its data, The protector reports. The higher figure was also supported by smart profits from investment banking and salary increases across the board, which boosted wages in other cities overall.
“After 20 years of redevelopment, [Milan] can stand a chance compared to other European capitals,” said Manfredi Catella, Founder and Chief Executive Officer of Coima SGR, Bloomberg. The company is the developer behind the Porta Nuova transformation project in Milan, a public green initiative. built over abandoned railway yards.
Other countries are also reaping the rewards of companies hopping to Europe: 70 percent of the increase in high earners was found in banking sectors in France, Italy and Spain, according to EBA data.
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