Milan Contract District, the bet on the future of Real Estate Milan Contract District, the bet on the future of Real Estate
Design

Milan Contract District, the bet on the future of Real Estate

Written by Redazione |

07 June 2017

The Milan Contract District is a 1700-square meter multi-functional space situated in the heart of Milan and dedicated to a new concept of Real Estate, which aims at combining the quality and productive excellence of the best interior and home design brands in a city that has now become the world project capital. 

In the balance between fashion, design, publishing, and finance, Milan also won the title as Italy's capital for the residential real estate sector. This is thanks to, on the one hand, its renewed power of attraction and, on the other hand, the implementation of its fresh and innovative sales approach that repositions the valuable market by adapting it to patterns and flows typical of other more industrialised sectors.

This was revealed by “City Trends Overview”, the first market insight signed by Milan Contract District and presented yesterday in Milan during a meeting attended by some of the most acclaimed Real Estate Manager men and women of Milan along with leading opinion leaders in multinational corporations.  

The focus was on the highly customised fit out and interior solutions, limited edition housing built in partnerships with the best design brands, residences with common areas managed by a concierge as if it was a luxurious hotel, sensorial apartments fitted to stimulate the five senses and to ensure a promise of the person's psychological well-being based on the values expressed in “Psicologia dell’AbitareTM”, a format developed by TecMa Solutions.

It is no coincidence that this is all happening in Milan, which is confirmed as the most attractive and dynamic Italian city in the real estate landscape, doubling national (+ 31.4%) and tripling international  (41.6%) investments in the last two years, as documented by the Aspesi, The Italian Association of Real Estate Developers

Halldis, an Italian company, and leader of temporary rental, mentioned that the premium properties market has significantly expanded and recorded positive signals regarding purchases and rents as well. 

While the price of new residential properties is at a standstill, that of premium properties is the only one that continues to increase both in terms of locations and finishes, furnishings and technological solutions. In this framework, the Milan Contract District is emerging as an innovative business model able to redefine some real estate approaches by implementing a marketing mix that combines the best interior and home design brands with innovative sales and promotion services.

Moreover, the sensory and emotional component of the current Real Estate market weighs much more than before. Therefore, the client must always be at the centre of the process: from the communication of the distinctive values that the house and property can offer (influencing phase) to the consistent maintenance of the initial promise through a customer experience able to support the commitment and to make the prospect buyer an ambassador of the choice (after-sales phase). 

Lorenzo Pascucci, General Manager of MCD, said: 

By counting on a reliable logistics structure and a team of more than 40 dedicated professionals, in this renewed framework, MCD offers a distinctive contract system formula by understanding the needs of the builders and purchasers, communicating them with modern marketing levers and transforming them into all-round solutions that follow the prospect from the first approach to after the delivery of the house. Therefore, the District is not only a platform for brands with absolute and acknowledged quality, but it is also able to combine the uniqueness of home design products with an exclusive "experience” able to maintain the ‘promise of the dream of your own house’ from the compromise agreement to the final deed. In fact, the ‘house product’ is the only product that has a delivery time to the end client that lasts for many months, almost years. To pursue the goal of selling “on paper” to those who choose in good faith and in advance, it is necessary to be able to guarantee customisation of the home...and this is where MCD steps in as a reliable, precise and credible partner to satisfy and support this promise”. 

With this in mind, the Customer Experience instrument is of crucial importance. According to the experience of MCD and other leading company partners such as Abitare Co., the apartments are sold better and quicker when unique and exclusive property projects are presented, and that allow to customise a dream along a path that is unparalleled and made up of tailor made services, comforts, Made in Italy quality and particular attention with a non-stressful and “turnkey” approach. 

Moreover, MCD numbers speak plainly. In just over one year from the opening in the city, more than 47 partner worksites were opened, of which 18 were confirmed and purchased in the last 20 months, while 22 partner worksites are under construction or just about to open, and in 80% of the cases these are located within the external ring road of Milan. 

In less than one-year basic contract specifications were signed with MCD with all partner brands of the platform for more than 280 apartments, and just as many will be signed before the end of summer. Again, more than eight sensory apartments and five mock-ups have been created in the last 20 months in luxury homes in Milan and this lead to the implementation of an exclusive service also for the interior decoration and styling part. 

The demand for residential purchases for rent with turnkey furnishing and services is also expanding, and the works in this area include: City Life (90 apartments), Piazza del Carmine (7 apartments), Via Manzoni 44 (10 apartments); then there are some opportunities being created near Parco Solari and behind San Babila (a ground to roof level building made up of 100 buy to rent apartments). 

Finally, as for the major buyers of MCD, approximately 5% of the sales is made up of public figures, sports figures, entrepreneurs, top managers and investors who are opting for high or very high end (from 8 thousand to 12 million Euro per square meter) properties in the centre or in luxurious neighbourhoods such as Citylife. The bracket is followed by the 5 and 8 million Euro bracket, which is the heart of the MCD business

The age group interested in purchasing in this range is made up of people over the age of 45 years, and 97% are Italian buyers (the remaining 3% are foreigners, mainly Chinese); the bracket between 400 and 700 thousand euro (approximately 25%) is usually filled with buyers selling their first home (or that of a parent or inheritance) who can access a superior property category while remaining in residential locations of the city centre. 

It gives an extremely positive overall picture, which shows that even in difficult times (from an economic point of view but not only) significant opportunities just waiting to be seized can be created. And, Milan Contract District knows how to do just that.

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