Finding a house in Italy: the $1.8 million transparent floor in Milan
This three-bedroom loft-style townhouse with outdoor glass balustrade is located in Porta Venezia, a multicultural neighborhood known for its Art Nouveau and neoclassical architecture, close to the center of Milan, the financial and fashion center of Italy.
"The idea is to give the loft a floating atmosphere and light," said Diletta Giorgolo, the residential director of Sotheby's International Real Estate in Italy. The heated swimming pool and spa in the basement can be seen through the bottom glass.
"This is not a typical family home," Ms. Georgolo added. "This is more suitable for some artists, architects or fashionistas."
Enter the main building, which has 14 apartments. The walls of the living area on the first floor bend to the sides of the floor-to-ceiling windows, and the central window of the frosted mullion is frosted. At the other end of the room, under the attic on the second floor, there is a separate lounge area with a fireplace, and the ceiling is transparent. Sofas, fireplaces and sculptures by Polish artist Igor Mitoraj are included in this auction.
There are wooden cabinets and refrigerators in the kitchen, matched with cabinets, and the curved countertops are made of glass and cement. The powder room and laundry/utility room are adjacent to the kitchen.
A wooden staircase with open treads and glass railings leads to the loft and the master bedroom suite, which has a mirror wall behind the bed and a walk-in closet. The glass paneled floor makes the living room visible below. A semi-circular balcony with curved metal railings and horizontal railings overlooks the living room.
The other two bedrooms have en suite bathrooms and can be accessed through the master bedroom. Each has a closet and a bathroom with shower. The third bedroom is currently set up as a study room.
The apartment is located in Via San Gregorio, a street lined with ethnic restaurants, small shops and bohemian styles. On the corner is Corso Buenos Aires, with more than 350 clothing stores making it the longest shopping street in Italy. Porta Venezia is the historic city gate from which the neighborhood got its name. It is just a few blocks away from Milan Central Station and Giardini Pubblici Indro Montanelli (the large urban park where the Natural History Museum is located). About 45 minutes drive from Milan Malpensa Airport.
Milan is the capital of the Lombardy region of northern Italy and one of the most expensive real estate markets in the country. Residential landscapes range from ancient palaces with elegant exterior walls to villas and townhouses with hidden gardens. The apartments in the bohemian enclave are located within the city’s medieval walls. But new buildings are changing the face of the city, even if the pandemic has slowed its market.
“The new development project takes the city to another stage, and international buyers appreciate that they can find international schools, foreign communities, and well-equipped buildings,” said Ms. Georgolo.
The Milan market “has been growing steadily, especially since 2016,” said Arianna Giovanni, marketing manager of Lionard Luxury Real Estate. She said that during the pandemic, despite "significant reduction in inventory," video real estate tours and contracts signed through agents continued to be sold.
"It is difficult to find a penthouse with a good terrace," she said. "Most people now want to own properties with some outdoor space." This includes villas outside the city limits and within commuting distance from the city center, as well as "self-sufficient country estates."
Ms. Giovanni said that at the top of the market, the prices of high-quality two-bedroom, two-bathroom apartments and villas range from 1.3 million euros to 8 million euros ($1.49 million to $9.1 million). Ms. Giovanni said it depends. It depends on the state of the unit, the building, the location and the existence of the outdoor space.
Ms. Giorgolo said that in the first quarter of 2021, Milan sales were about 6,000 units, “this is evidence of the recovery of the Italian real estate market”. "It's even higher than before Covid." According to Sotheby's internal data, the median price of properties sold so far this year is about 2.5 million euros ($2.86 million), of which the highest transaction price is 11.5 million. Euro ($13.2 million), located in the Quadrilatero High Fashion District, she said.
According to market and consumer data portal Statista.com, in the city’s historical center and the most expensive area, Centro, buyers may pay close to 9,400 euros per square meter (US$1,000 per square foot) by September 2021 the price of.
Antonio Zagaroli, managing director of Knight Frank Italia, pointed out that from the second quarter of 2019 to the second quarter of 2020, house prices in Milan have risen by more than 10%. The number of registered residences in the first half of this year was 2.6%," he said, citing data from the Knight Frank Global Residential Cities Index.
Mr. Zagaroli expects that the market "will be bullish in the next three to four years", which may be boosted by the 2026 Winter Olympics scheduled to be held in Milan. The plan calls for the old Porta Romana railway station to be rebuilt into an eco-friendly complex for the Olympic Games, after which the athletes’ housing will become students and affordable housing, and the Olympic Village will become a self-sustaining community.
The annual flat tax of 100,000 euros (114,459 U.S. dollars) established in 2016 helps attract high-net-worth foreigners with an annual income of more than 250,000 euros (286,000 U.S. dollars), especially high-net-worth foreigners from Europe and Asia, who list Italy as The main place of residence, Mr. Zagaroli said.
Foreign retirees are paying attention to the tax bait introduced in July 2020, guaranteeing a 7% income tax on income generated abroad (including pensions, rental income, annuities and other profits) for a period of 10 years. "Due to the flat tax, our sales throughout Italy have increased," Ms. Giorgio said. She expects "more" sales next year, provided there are no new Covid variants.
Ms. Giorgolo said that in 2020, “due to travel restrictions caused by Covid-19”, most buyers will be Italians. With the lifting of the travel ban, the situation has changed.
"From the Far West to the Far East, we have seen customers in the most unexpected regions of the world today," Ms. Giovanni said, including Australia and Taiwan.
Alessandro Riboni, Chief Executive Officer of Knight Frank Italia, said that many people have moved from Paris and London because "the quality of life in Milan is very high". The waterfront, mountains and lakes are all within two hours. .
Italy has no restrictions on foreign ownership. The delivery is done by a neutral notary, and the buyer chooses and pays the fee. Ms. Giorgolo said that if the buyer purchases in a private capacity and does not move his residence to Italy, he does not need a lawyer.
Stamp duty, brokerage fees and notarization fees total between 7% and 9% of the purchase price.
Ms. Giovanni said that developers’ new buildings or recently renovated properties are subject to a 10% or 22% value-added tax, making the transaction cost 16% to 29% of the purchase price.
Ms. Giovanni said that obtaining financing can be difficult. "Due to current regulations, the fact that their main source of income is abroad poses a risk to our bank," she said.
Ms. Giorgolo said that property taxes range from 0.4% to 0.7% of the fiscal value, depending on the location and type of property.
If the townhouse is purchased as the first residence, the buyer will pay a stamp duty of 6,000 Euros (US$6,890). Ms. Giorgolo said that if it is purchased as a second home, the stamp duty or purchase tax is approximately 31,000 Euros (35,600 USD).
