Investing in northern Italy: Opportunities and legal insights in the growing Milan and Lake District real estate markets
by Alessandro Occhionero
Northern Italy is drawing growing attention from international investors, particularly in two thriving real estate markets: Milan and the Lake District (Como, Garda, Maggiore). These areas offer strong investment potential, both in terms of value stability and rental income.
Milan, Italy’s financial hub, has shown steady growth in the residential sector since recovering from the 2008 downturn. Demand remains high not only in the historic centre and semi-central zones, but also in newly developed areas like Porta Nuova and CityLife – modern districts known for redefining the city’s skyline. On the outskirts, former industrial zones are being transformed through demolition, remediation, and the construction of new, energy-efficient Class A residential buildings.
Investing in Milan’s property market provides opportunities for value appreciation and strong rental income, including from short-term lets. The city has become a key destination not only for business, but also for tourism – especially during events such as Design and Fashion Weeks, and the upcoming 2026 Winter Olympics. During these periods, rental prices rise significantly, boosting yields.
Beyond Milan, the Lake District is also experiencing increasing demand, particularly for second homes and luxury properties. Scenic views, historic villas, and premium hospitality make lakefront real estate especially attractive to both EU and non-EU buyers. Supply is limited, particularly on the water, contributing to rising property values.
Italian real estate transactions require careful legal due diligence. It is essential to verify ownership and ensure full compliance with urban planning and building regulations. Older properties may have undergone changes (renovations, expansions, or subdivisions) that must be legally validated. Failure to do so can delay or block the purchase, especially during the notarial phase or mortgage approval.
Irregularities may prevent a sale or create post-sale liabilities for the seller, and resale challenges for the buyer. Moreover, properties in historic areas or near protected landscapes (common around the lakes) may be subject to strict regulations limiting modifications, reconstructions, or expansions. Early legal review is therefore crucial before signing preliminary agreements or making deposits.
Taxation is also a key factor. Under Italian law, individuals or non-commercial entities and basically all those which are not businesses, selling a property within five years of purchase may be subject to capital gains tax.
In summary, northern Italy offers excellent real estate opportunities. Successful investment depends on strategic planning supported by expert legal and tax advice tailored to each transaction.
Alessandro Occhionero is a lawyer based in Milan since 2003. A qualified Lawyer at Supreme Court of Cassazione since 2016, specialised in property law, expropriations for public utility purposes and tax law, Alessandro is a Partner of Sofiae - Solidoro Finulli & Partners.