MILAN PROVINCE 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Real Estate Market -1st semester 2013 Lombardy - Italy Copyright 2013 World Capital. All Rights Reserved.
MILAN PROVINCE Real Estate Market -1st Semester 2013 Lombardy - Italy Index: Introduction Office real estate market Province and Municipality Lease Trend - Across the Globe Retail real estate market Retail High-street market Industrial real estate market Province Europe prime industrial cities - lease rate Hotel real estate market Hotel & tourism attractions Tourism flows Hotel investment Appeal Index
France Switzerland Austria Slovenia ITALY 1
Maggiore Lugano Como Varese Idro Garda LOMBARDY REGION 2
LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT Lombardy s GDP GDP Year GDP Millions of euro GDP per capita-euro 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 247.051,8 259.431,0 270.653,3 279.450,4 289.471,2 297.600,4 307.717,7 320.843,8 323.973,3 310.952,0 330.997 337.285,9 327.167,3 27.488,1 28.765,6 29.836,9 30.448,8 31.059,5 31.545,2 32.356,3 33.442,5 33.424,8 31.743,1 33.500 33.624,2 32.615,5 Source: ISTAT, Italian National Institute of Statistics Provinces of Lombardy Province Population Area (km²) Municipalities (n ) Bergamo 1.098.740 2.723 244 Brescia 1.256.025 4.783 206 Como 594.988 1.288 160 Cremona 363.606 1.772 115 Lecco 340.167 816 90 Lodi 227.655 782 61 Mantua 415.442 2.339 70 Milan 3.156.694 1.575 134 Monza & Brianza 849.636 405 55 Pavia 548.307 2.965 190 Sondrio 183.169 3.212 78 Varese 883.285 1.199 141 Lombardy 9.917.714 23.860,62 Italy 60.626.442 301.340 Source: ISTAT, Italian National Institute of Statistics 3
LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT A51 A9 A26 Maggiore Lugano Como A22 Varese PEDE MONTANA Idro Garda A4 BREBEMI A4 A21 Borni- Mortara A1 A7 Regional Road Transport System 4
MILAN Province Milan is Lombardy's largest city and one of the world's most important economic hubs. For international business communities in the areas of finance, fashion, design and ICT multinationals, Milan represents both a benchmark and an epicentre. The city and outlying districts are home to some 3.5 million inhabitants and constitute Italy's number one area in terms of consumption and production. A total GDP per capita of 36,000 puts Milan in first place nationwide and eleventh in the world. In addition, the area is an important international logistics centre, home to 20% of Italy's warehouses used by various operators. Milan has an international reputation as one of the cornerstones of the European economy, hardly surprising when you consider the huge amount of commercial traffic, people and global expertise that pass through every day.
LOMBARDY Real Estate REPORT LOMBARDY Real Estate REPORT Foreign companies percentage by sector 1,80% Precision mechanics equipment Metalworking (inc, alloys) 2,10% 1,80% Food derivatives Plastic products 2,20% 1,50% Other professional services Transport & logistics 3,40% Metal production 4,40% Electricity, gas & water 7,20% 42,10% Wholesale trading Machinery & mechanical equipment 14,30% Other 19,20% Source: ISTAT, Italian National Institute of Statistics Ukraine Morocco 4% 5% Romania 8% Albania 3% 22% Philippines Foreign Citizens Population First 10 Nationalities Source: ISTAT, Italian National Institute of Statistics Sri Lanka 8% Ecuador 9% 18% Egypt Peru 11% 12% China Milan s GDP Trend YEAR 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP per capita-euro 35.547,20 35.865,30 35.776,00 37.763,10 37.519,60 38.030,70 36.706,50 37.031,40 36.199,60 Sources: ISTAT, Italian National Institute of Statistics - Unioncamere - G. Tagliacarne Institute 6
A1 LOMBARDY Real Estate REPORT OFFICE real estate market Milan City - Office Real Estate Value /m²/year More than 280,000 business of all sizes are based in the Milano area. Opening a business is easy in the city rated as one of the top ten economic hubs on the planet by Standard & Poor's. All you need is a week and a minimum level of required capital. The Milan Exhibition Centre offers lots of opportunities for businesses and contributes around 4.3 million to the local economy each year. Expo 2015 will mark another important step in Milano's international development and 21 million visitors, exhibitors from 181 nations and 7000 events are expected. LEGEND MALPENSA A8 A8 COMO - SWISS A4 VENICE OFFICE CENTRE MALPENSA AIRPORT TANGENSIALE EST LINATE AIRPORT INFRASTRUCTURE UNDER CONSTRUCTION ACTUAL INFRASTRUCTURE MILAN BRE.BE.MI METRO LINE RAILWAY LINE TURIN A4 Average annual lease price 170 /mq 140 /mq 110 /mq 90 /mq 70 /mq PIACENZA A7 GENOA Milan City - Office Real Estate Value /m²/year 500 /mq 450 /mq 400 /mq 320 /mq 300 /mq 260 /mq 230 /mq 220 /mq 210 /mq 200 /mq 180 /mq METROPOLITAN LINE 450 /mq 400 /mq 300 /mq 250 /mq 200 /mq 150 /mq 140 /mq 130 /mq 90 /mq 80 /mq 70 /mq METROPOLITAN LINE Max annual lease rate Min annual lease rate 7
LOMBARDY Real Estate REPORT 1st semester - 2013 MILAN Province Lease Trend - Across The Globe Lease rate /sq.m/year 1400 1200 1000 800 600 400 200 0 Sao Paulo Rio de Janeiro San Francisco Bogota Vancouver Lima London Brussels Moscow Paris Milan Frankfurt Warsaw Madrid Prague Budapest Hong Kong Tokyo Beijing Delhi Singapore Shanghai Mumbai Kuala Lumpur Seoul Sydney Melbourne Latin America- America-Canada Europe Asia Australia Growth rate % Beijing 20 Sao Paulo 15 10 Stockholm 5 0 New York Shanghai London Dubai Frankfurt Milan Rome -5 Moscow Barcelona Brawlers Madrid -10 Paris -15 Hong Kong Vacancy rate % 31% 20 15 10 5 0 San Francisco Sao Paulo Rio de Janeiro Vancouver Bogota Lima Budapest Prague Frankfurt Brussels Milan Warsaw Moscow Madrid Paris London Hong Kong Tokyo Beijing Delhi Singapore Shanghai Mumbai Kuala Lumpur Seoul Sydney Melbourne Latin America- America-Canada Europe Asia Australia 8
LOMBARDY Real Estate REPORT RETAIL real estate market Milan city- Retail High streets Via Monte Napoleone Via della Spiga Corso Buenos Aires PRIME (high-street) SECONDARY (high-street) Lease: 4000-6700 /m²/year Examples of existing brands: Bulgari - Armani Gucci - PRADA Louis Vuitton - Cartier Giada - Valentino Lease: 3200-4900 /m²/year Examples of existing brands: Stuart Weitzman Dolce&Gabbana - Falconeri Roberto Cavalli - Tod's Alan Journo-Giorgio Armani Lease: 400-1200 /m²/year Examples of existing brands: Calvin Klein - Sisley Muji - Benetton - Lacoste Zara - Mango - H&M Adidas - Bershka Via Paolo Sarpi Corso Garibaldi Historical Centre Zone Brera Piazza Republica Piazza Diaz Corso di Porta Vittoria Corso XX marzo Corso Vercelli Via Dante Via Torino Corso Vittorio Emanuele Lease: 550-1250 /m²/year Examples of existing brands: Lacoste Hogan - Luca KiKo Swatch Store Lease: 1500-2600 /m²/year Examples of existing brands: Yamamay - Lush Foot locker Swarovski - Elena Miro Max & Co. Lease: 900-2400 /m²/year Examples of existing brands: Intimissimi - Zara Rossella Carrara Guess - KiKo Accessorize - Boxer Lease: 1400-3000 /m²/year Examples of existing brands: H&M - Zara - Celio Massimo Dotti - Douglas Disney - Marilena Calzedonia - Liu-Jo 9
LOMBARDY Real Estate REPORT 1st semester - 2013 MILAN Province Lease Rate - Milan City /m²/year Country City Prime street 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Italy Milan Via Monte Napoleone Via della Spiga Corso Vittorio Emanuele Via Dante Via Torino Corso Buenos Aires Corso Vercelli Lease Rate - Across The Globe /m²/year BRIC countries Country City Prime Street 2011 2012 2013 China Hong Kong Causeway Bay 12,644 22,307 22,764 U.S.A New York Fifth Avenue 18,003 22,047 22,340 U.K London Oxford Street - West 9,353 13,406 13,103 France Paris Avenue des Champs-Elysées 7,310 10,375 11,229 Switzerland Zurich Bahnhofstrasse 7,997 8,164 8,216 Italy Milan Via Montenapoleone 6,830 6,870 6,950 Australia Sydney Pitt Street Mall 7,544 7,243 7,141 Belgium Brussels Rue Neuve 7,800 7,409 7,115 Russia Moscow Tverskaya 5,769 5,669 5,718 Japan Tokyo Ginza (Chuo Street ) 5,108 5,116 4,965 Germany Munich Kaufingerstraße 4,346 4,103 4,083 Germany Frankfurt Zeil 3,550 3,609 3,620 Germany Hamburg Spitalerstraße 3,157 3,483 3,470 Germany Berlin Tauentzienstraße 2,889 2,738 3,100 China Shanghai Nanjing Road West 2,730 2,772 2,851 China Beijing Wangfujing 2,152 2,495 3,324 S.Corea Seoul Myeongdong 2,085 2,090 2,062 Spain Madrid Puerta del Sol Preciados 2,303 2,487 2,343 India Delhi Khan Market 2,319 2,169 2,174 Brazil Rio de Janeiro Garcia D`Avila 1,340 1,532 1,570 U.A.E Dubai Sheikh Zayed Road 151 327 361 Lease /sqm/year 25,000 20,000 2011 2012 2013 15,000 10,000 5,000 0,000 Hong Kong New York London Paris Zurich Milan Brussels Sydney Rome Moscow Tokyo Munich Frankfurt Hamburg Beijing Berlin Shanghai Seoul Madrid Delhi Rio de Janeiro Dubai 10
INDUSTRIAL real estate market Milan province - industrial zones LOMBARDY Real Estate REPORT Creative Industry (fashion & design) Industrial Key Sectors Retail & Commerce Financial and Consultancy Services Life sciences & Biotechnology ICT & Media The city's international repute is enhanced by its superb transport infrastructure (three airports within a 50 km radius) and the presence of thousands of foreign companies and multinationals on Milanese land. Milan is blessed with a perfect location and as such has been a key trading centre for centuries. Today, an efficient and extensive infrastructure network connects the city to major European, North African and Middle Eastern markets (some 780 million potential consumers). AUTOSTRADA PEDEMONTANA LOMBARDA Minimum lease price MALPENSA A8 A8 COMO - SWISS A4 VENICE 50 /mq 48 /mq 44 /mq TANGENZIALE EST 40 /mq 42 /mq 38 /mq A4 TURIN MILAN BRE.BE.MI 36 /mq 34 /mq LOGISTIC ZONE LINATE AIRPORT ACTUAL INFRASTRUCTURE UNDER CONSTRUCTION INFRASTRUCTURE A7 GENOA PIACENZA A1 AUTOSTRADA PEDEMONTANA LOMBARDA Maximum lease price MALPENSA A8 A8 COMO - SWISS A4 VENICE 54 /mq 52 /mq 50 /mq TANGENZIALE EST 44 /mq 48 /mq 42 /mq A4 TURIN MILAN BRE.BE.MI 40 /mq LOGISTIC ZONE LINATE AIRPORT ACTUAL INFRASTRUCTURE UNDER CONSTRUCTION INFRASTRUCTURE A7 GENOA PIACENZA A1 All values are expressed in / sq m / year and may be increased or decreased up to 25% in relation to the characteristics and location of the property, the law, and the state of conserv -ation. In particular, the analyzed sample took into account property from 5,000 to 20,000 square meters for logistics. It must be considered that for properties with the courier / transport use values can vary from a minimum of 10% to a maximum of +40%. 11
LOMBARDY Real Estate REPORT 1st semester - 2013 MILAN Province International trade 2012 EXPORT IMPORT 34,193 Millions of 67,930 Millions of Europe prime industrial cities - lease rate /m²/year 140,00 120,00 100,00 80,00 60,00 40,00 20,00 Oslo Zurich Stockholm Moscow London St. Petersburg Tel Aviv Monaco Glasgow Frankfurt Amsterdam Barcelona Manchester Madrid Paris Istanbul Dublin Warsaw Rotterdam Berlin Kiev Vienna Rome Riga Athens Milan Prague Brussels Bucharest 12
LOMBARDY Real Estate REPORT HOTEL real estate market Milan Province - Hotel & touristic attractions Milan is a lively city visited by tourists of all kind during the whole year, according to its high level of connectivity to the world. Except August time the flow of business class tourist is very high, the Event tourism is another group which due to the high quantity of events held and their vast variation are highly attracted to Milan. One of the most important up coming events is Expo 2015 that will mark another important step in Milan's international development, 21 million visitors, exhibitors from 181 nations and 7000 events are expected by the time of the event. Milan is internationally recognised as one of the world's most important fashion capitals, along with Paris, New York City, London and Tokyo. Acording to this fact, Milan is the favoured destination for shopping lovers and leisure tourism. Milan province - tourist flows Touristic places Italians Foreigners Total Arrivals Night spent Arrivals Night spent Arrivals Night spent Milan 1.581.703 3.028.033 2.572.462 5.551.363 4.154.165 8.579.396 Other municipalities 1.182.906 2.059.132 694.560 1.364.372 1.877.466 3.423.504 TOTAL 2.764.609 5.087.165 3.267.022 6.915.735 6.031.631 12.002.900 Hotel density on Milan urban area 3 Stars hotels 4 Stars hotels LEGEND 5 Stars hotels 1st ring-historical centre 2nd ring-bastoni ring 3rd ring-circonvallazione ring Periphery Hotel concentration Metro line Central Train Station Milan EXPO 2015 Linate Airport 13
LOMBARDY Real Estate REPORT 1st semester - 2013 MILAN Province Milan city - hotel investment appeal index 3 Stars Hotel 4 Stars Hotel 5 Stars Hotel 3 Stars Hotel 4 Stars Hotel 5 Stars Hotel 3 Stars Hotel 4 Stars Hotel 5 Stars Hotel Min room revenue *1 /night Annual occupation rate *2 Lease price /m2/year *3 Room revenue /per year Zone: Historical Centre Room lease /year Hotel investment appeal index 90-150 69,20% 200-400 22732,20-37887,00 5.000,00-10.000,00 0,74-0,78 150-225 69,33% 200-400 37957,94-56936,90 6.400,00-12.800,00 0,78-0,83 200-540 65,30% 200-400 47669,00-128706,30 7.400,00-14.800,00 0,84-0,89 Zone: Central Train Station 65-90 70,10% 150-260 16631,23-23027,85 3.750,00-6.500,00 0,72-0,77 130-180 70,10% 150-260 33262,45-46055,70 4.800,00-8.320,00 0,82-0,86 170-300 68,70% 150-260 42628,35-75226,50 5.550,00-9.620,00 0,86-0,89 Other zones within the third city ring 60-70 67,70% 140-230 14826,30-17297,35 3.500,00-5.750,00 0,67-0,76 90-130 65,30% 140-230 21451,05-30984,85 4.480,00-7.360,00 0,76-0,79 150-260 66,80% 140-230 36573,00-63393,20 5.180,00-8.510,00 0,86-0,88 Primary Sources *1- Booking.com *2- Istat, Italian National Institute Of Statistics - Milan Province Tourism - Federturismo Confindustria - Italian Hotel Monitor - Trademark Italy *3- World Capital Colonne di San Lorenzo Milan Fashion Week Rho Exhibition The Scala Theater Arco della Pace Navigli Canal Milan Design Week 14
Our Expertise for your business Phase 1 Identifying needs: - Location - Type of property - Budget - Timing Phase 2 RESEARCH AND SELECTION: A network of local real estate consultants, according to a specific search criteria, individualize a series of real estate opportunities in order to propose the best solutions to customers. Phase 3 EVALUATION AND CONCLUSION OF THE CONTRACT: The client consider the best market opportunities to choose the one suits his needs and then formulate the lease or purchase proposal. The customer will be companied until the conclusion of the final contract. Phase 4 REAL ESTATE INVESTMENT: Completed the contractual definition, World Capital individualizes, in the case of lease, the investor (private, company, real estate found etc) that is interested in purchasing the asset. A G E N C Y - C O N S U L T IN G - P R O P E R T Y - IN V E S T M E N T Piazza Maestri del Lavoro, 7-20063 C ernusco sul Naviglio (MI) Tel. +39 02 95305886 www.worldcapital.it - research@worldcapital.it Phase 5 EQUIPMENT, PLANNING, REALIZATION AND COMPLEMENTARY SERVICES: Based on the customer request, World Capital provides technical advice about the property.
Via Restelli, 3/7 (MI) 20124 Milan Tel. +39 02 87365130 Fax. +39 02 95305209 Neda Aghabegloo Research Department neda.aghabegloo@worldcapital.it WORLD CAPITAL IN THE WORLD MILAN SHANGHAI BEIJING MOSCOW NEW YORK SAO PAULO PRAGUE LONDON BUENOS AIRES We value your business Via Camperio, 1 20123 Milan Tel. +39 02 85155220 Fax. +39 02 85155227 info@investinlombardy.com www.investinlombardy.com