Choosing a Home in Milan: What Can €500,000 Get You in the City Center vs. the Suburbs?

Rising Real Estate Costs in Milan

Buying a home in Milan is becoming increasingly expensive, with prices often out of reach for many.
Nevertheless, real estate in Italy is still viewed as a safe asset, and Milan remains at the top of the list for the most sought-after cities, not only for residential needs but also as an investment opportunity, attracting large international investment funds.

The price surge of 48% between 2019 and late 2023 has significantly diminished the purchasing power of buyers.
As a result, this has influenced the types of homes attainable within a €500,000 budget without a mortgage, particularly in the most desirable central areas.
In this article, we delve deeper into real estate opportunities by exploring the various options available in central Milan and its outskirts.

What Can You Buy in the City Center for €500,000?

Purchasing property in central Milan can be a substantial financial challenge.
Areas such as Garibaldi, Brera, Moscova, and Porta Nuova have an average selling price of approximately €10,700 per square meter.

With a €500,000 budget, prospective buyers could acquire a property of about 46 square meters, likely a studio or a one-bedroom apartment.

Being close to Milan’s financial and commercial hubs, like the Piazza Gae Aulenti district in Porta Nuova and the main shopping streets of Brera, offers a prestigious option at the expense of living space.

A more affordable yet prestigious alternative is found in the Arco della Pace area, Arena, and Pagano, close to Sempione Park.
Here, the average price per square meter is around €9,428.

This means that with €500,000, one could purchase a well-maintained apartment of approximately 53 square meters or a 70-80 square meter property needing renovation or situated on a raised floor.

This residential, tranquil area is highly valued for its proximity to the scenic Sempione Park and its historic arch.

Affordable alternatives are available in areas like Quadronno, Palestro, and Guastalla, with an average price of €8,845 per square meter.
Here, it’s easier to find opportunities in historic buildings, though renovation costs may increase the overall investment.

A good compromise for those who enjoy trendy neighborhoods but want more space is the Porta Venezia and Indipendenza areas, averaging around €7,755 per square meter.
In this setting, it is feasible to secure an apartment of approximately 64 square meters.

Lastly, historic neighborhoods like Fiera, Sempione, and Portello, which have seen modern residential complexes such as City Life emerge, offer competitive solutions at an average of €6,687 per square meter, allowing the purchase of around 74 square meters.
However, it’s essential to note that a significant price disparity exists between newly constructed residences and older homes, which often require renovations to meet modern standards.

What Can You Buy in the Periphery for €500,000?

For those prioritizing space, peripheral areas of Milan provide much more budget-friendly real estate options compared to the city center, particularly in neighborhoods like Bisceglie, Baggio, and Olmi, where the average price is around €2,976 per square meter.

In these locations, with €500,000, one can acquire a house measuring 150-160 square meters, such as a spacious apartment or a villa with a garden.

Although more distant from the city center, these areas are well-connected through public transport, offering greener and quieter environments.

In San Siro and Trenno, with average prices of €4,051 per square meter, the budget enables the purchase of an apartment approximately 123 square meters in size.
San Siro, once a rural hamlet, is undergoing significant redevelopment, drawing more investors and families seeking space and peace.

Additionally, Affori and Bovisa have also seen urban revitalization, benefiting from the expansion of the Politecnico di Milano.
Here, with an average price of €3,677 per square meter, a budget of €500,000 allows for a property of around 136 square meters.

Another attractive option includes districts in the southern part of the city like Famagosta and Barona, which have a mix of modern buildings and older residences, averaging around €4,266 per square meter.
With €500,000, one can acquire an apartment about 117 square meters in size.
Similar opportunities exist in Corvetto and Rogoredo at approximately €4,282 per square meter.

Finally, for those considering developing and revitalizing neighborhoods, options can be found in Cimiano, Crescenzago, or Adriano at an average of €3,623 per square meter, allowing purchases of over 137 square meters.

**Disclaimer:** The information and considerations contained in this article should not be used as the sole or primary support upon which to base investment decisions.
The reader retains full freedom in their investment choices and bears full responsibility for them, as they alone know their risk appetite and time horizon for investment.
The information contained in the article is provided for informational purposes only, and its dissemination does not constitute and should not be considered an offer or solicitation for public savings.