Milan is more than just Italy’s fashion and financial epicenter. Its magnetic appeal stretches across the tourism, education, and business sectors. When these elements combine with the current property market, Milan emerges as a potential goldmine for Airbnb investments. Here, we dissect the numbers, offering a detailed analysis to fortify the claim.
Reasons Why Airbnb in Milan is a Great Investment
Milan’s multifaceted charm extends from its historic landmarks to its modern skyscrapers. Let’s dive deep into the numbers and concrete reasons that make Milan’s Airbnb market a promising investment avenue.
Global Appeal: According to Statista, the Metropolitan city of Milan attracted over 10 million international tourists in 2019.
Fashion Weeks: Milan Fashion Week stands alongside prestigious events in London, Paris, and New York as part of the esteemed “Big Four Fashion Weeks”. Initiated in 1958, the event draws over 22,000 tourists every season.
Business and Trade Center
Financial Hub: Milan hosts the Italian Stock Exchange, three Fortune 500 companies, and over 8% of Italian businesses. This city houses approximately 45% of the establishments found in the Lombardy region. Milan accounts for 10% of the country’s GDP.
Trade Fairs: Events like the Milan Furniture Fair have seen an increase of 20% in attendance in the last five years.
Rich History: Milan is home to four significant UNESCO World Heritage sites, namely the Santa Maria delle Grazie with “The Last Supper” by Leonardo da Vinci, the Church and Dominican Convent of Santa Maria delle Grazie, the Sacri Monti of Piedmont and Lombardy, and the Rock Drawings in Valcamonica. These sites attract history aficionados from around the globe throughout the year.
Vibrant Nightlife: Milan boasts an eclectic mix of over 300 nightlife spots, ranging from upscale rooftop bars and historic jazz clubs to underground techno venues and cozy wine bars, ensuring a wide array of nocturnal experiences for all tastes.
Student Influx: Institutions like Bocconi University receive 80,000+ applications yearly, emphasizing the demand for housing.
High ROI (Return on Investment)
Rising Property Value: Over the past decade, Milan’s real estate has seen a year over year appreciation. In June 2023, the average asking price for residential properties on sale stood at €5,271 per square meter, marking a 3.31% rise from July 2022, which was €5,102 per m². Over the preceding two years, the highest average price within the Milano municipality was recorded in June 2023, hitting a peak at €5,271 per square meter.
Consistent Occupancy: With its attractions, Milan’s Airbnbs have an average 75% occupancy rate year-round.
Milan Airbnb Market Metrics Analysis
Milan’s Airbnb market demonstrates impressive figures that highlight its attractiveness for hosts. Here’s a snapshot based on recent data:
- Average Daily Rate (ADR): The typical daily rate for an Airbnb property in Milan stands at $140. This figure peaks in April, where the rate increases to a maximum of $177.
- Occupancy Rate: On average, properties maintain a commendable occupancy rate of 75%. This rate witnesses a surge in September, reaching a significant 91%, showcasing the high demand during this period.
- Revenue Insights: An average monthly revenue from an Airbnb rental in Milan is approximately $2,233. Once again, April emerges as a lucrative month for hosts with the highest revenue generation, topping at $2,731.
- Property Count and Type: Milan boasts an impressive 17,793 active Airbnb rentals. A significant majority, 84%, of these are entire home rentals, indicating a preference for privacy among guests. Furthermore, one-bedroom properties dominate the listings, accounting for 71% of the offerings.
- Cancellation Policy: In terms of booking flexibility, the majority of hosts in Milan opt for a lenient approach. A combined total of 86% chose either the flexible or moderate cancellation policy, making the city’s Airbnb listings more attractive and accommodating for potential guests.
- Minimum Stay: A majority of Milan’s Airbnb properties, specifically 74%, have a minimum stay requirement of one to two nights. This caters to both short-term travelers and those wanting extended stays.
Milan’s Airbnb metrics present a vibrant and thriving market. The city’s consistent high occupancy rates and competitive daily rates underscore its position as a prime destination for travelers. Coupled with the vast majority of hosts offering entire home rentals and flexible cancellation policies, Milan is undoubtedly a hotspot for potential Airbnb investors and hosts.
Supportive Legal Framework
Business Licensing and Activities on Airbnb in Milan
If you’re looking to host experiences or short-term rentals on platforms like Airbnb in Milan, there are certain local laws and registration requirements you need to be aware of:
Understanding Business Classification: In Italy, an activity is typically considered a business if it’s done professionally, regularly, and for profit. Resources are available online to help you determine if your activity qualifies as a business. Activities requiring licenses, like tour guiding, generally categorize you as a business. But some passion-driven, non-professional activities might not.
Responsibilities of Businesses: Being transparent and accurate with consumers is crucial. Misleading representations, especially regarding services and pricing, are frowned upon.
Licensing and Registration: Businesses must:
- Obtain a VAT number from the Revenue Office.
- Register with the Chamber of Commerce.
- Have insurance with INAIL.
- Enroll in the pension plan at INPS.
- Use the online platform for these processes.
Provide a notice (SCIA) if their activity falls within specific categories before commencing operations.
Formal Business Structures: While you don’t necessarily need to establish a company to trade goods or services in Milan, there are various business structures like companies, partnerships, or cooperatives that you might consider, each with its own regulations.
The Unique Milanese Airbnb Experience: Numbers Don’t Lie
An Airbnb stay in Milan isn’t just a housing solution; it’s a gateway to the city’s soul. 90% of reviews on Airbnb properties in Milan mention the “local experience” as a significant highlight, underscoring the platform’s unique offering compared to traditional hotels.
Sustainability: The Future of Milan’s Airbnb
Milan’s commitment to sustainability is evident. Airbnb hosts adopting eco-friendly practices report a 25% increase in bookings, making green investments both ethical and profitable.
How many tourists visit Milan annually?
Over 10 million international tourists visited Milan in 2019, showcasing its enduring appeal.
How did COVID-19 impact Airbnb investments in Milan?
Initial travel restrictions saw a 40% decline in bookings. However, by mid-2021, a robust recovery was noted, especially in domestic tourism sectors.
Are there any challenges to starting an Airbnb in Milan?
Like all ventures, challenges exist. It’s essential to stay updated with local regulations and market shifts. However, the high demand and supportive ecosystem make it worth the effort.
Why do travelers prefer Airbnb over hotels in Milan?
Airbnb offers a localized experience, often at a more affordable price point. Moreover, the ability to choose unique properties adds to its allure.
Is safety a concern for Airbnb guests in Milan?
Milan ranks among Italy’s safest cities. However, travelers are always advised to exercise standard precautions.
Milan’s Airbnb market has witnessed a substantial growth trajectory, perfectly mirroring the city’s flourishing appeal as a global destination. Several factors underline this upward trend. For starters, Milan’s strategic position in Europe makes it easily accessible, acting as a bridge between the East and the West. Additionally, the diverse demographic appeal—from fashionistas and business professionals to students and historians—ensures a steady influx of varied visitors. Analyzing the user reviews and feedback on Airbnb platforms, one can observe a prominent emphasis on the “authentic Milanese experience.” This, combined with the city’s diverse attractions, results in a high demand for Airbnb accommodations. Furthermore, the city’s residents, known for their warmth and hospitality, play an instrumental role in offering a quality Airbnb experience. They often go above and beyond in acquainting guests with local secrets, be it a hidden trattoria, an underground art show, or a scenic rooftop. This personal touch, often absent in hotel stays, makes Airbnb a preferable choice for many. In terms of numbers, the average duration of stay in Milan’s Airbnb properties tends to be longer than in other major European cities, indicating visitors’ intention to deeply explore the city. In conclusion, the mix of Milan’s intrinsic appeal, combined with the unique Airbnb experiences it offers strongly underpins the city’s growing Airbnb market, making it a lucrative investment avenue.