Rome, October 13 (askanews) – Milan's real estate market is experiencing an unprecedented paradox: while 150 construction sites remain stalled by prosecutors' investigations into alleged irregularities in building permits, real estate crowdfunding is experiencing explosive growth of 40%, raising €27,86 million in the first half of 2025. This contradiction highlights how investors continue to believe in the city's potential, despite the bureaucratic obstacles that have paralyzed the new construction sector.
The crisis stems from the improper use of SCIA (Certified Notification of Initiation of Activity) instead of the more complex Building Permits for large-scale construction projects. "Many high-rise complexes, towers, and very important projects have used this SCIA title instead of a PdC," explains Federica Abanese, an expert in the Milanese real estate sector. "The problem is that without a building permit, fund investors are left waiting for years for the situation to resolve itself."
Despite the challenges, national data on real estate crowdfunding paint a picture of sustained growth. Between 2024 and 2025, 160 equity crowdfunding campaigns were launched in Italy, with 30,6% of real estate projects maintaining an 88% success rate. Real estate lending crowdfunding increased by 20,9%, with average returns around 10%, while the average annual interest rate for crowdinvesting loans rose to 10,07% in the first half of 2025.
"Real estate crowdfunding offers returns of 12-14% in 12 months, two years at most," Federica emphasizes. "No bank, no financial product can provide such a high and secure return as those related to real estate." However, the expert warns of the risks: "It's essential that significant due diligence has been done, that the building permit already exists, and above all, that you know what type of design work has been done."
The situation in Milan worsened in July 2025, when investigations involved prominent figures in the sector, including the mayor, paralyzing prestigious projects such as those linked to San Siro – Scalo House – Residenze Lac and investigating others, such as Bosco Navigli and Park Tower.
"Prestigious construction sites, those under investigation, those under construction, even very important construction sites from a planning standpoint," confirms Federica, who has experienced the consequences firsthand with two projects awaiting PdC permits, one on Via Gallarate and one in the Bovisa area.
However, Milan remains attractive to international investors. "Thanks to the flat tax, it has become a landing place for foreign companies to bring their capital here," the expert observes. "They often call me saying, 'Federica, we want to invest.' When there's a lot of demand, prices remain stable or can even rise." Comparisons with other European cities confirm this theory: "Paris and London are even further behind Milan in terms of prices; they're cities where prices are even higher."
The real estate crowdfunding sector raised over €180 million between July 2024 and June 2025, distributed across lending and equity transactions, demonstrating the resilience of alternative investments even in an uncertain environment. "When making an investment with real estate as the underlying asset, we can define it as not a 100% certainty, but a good success rate," Federica concludes. "The city still has much to offer, and real estate investments, if well-planned, can continue to be profitable." The solidity of real estate continues to attract capital despite regulatory turbulence and some global economic downturns.
The challenge for Milan will be to quickly unblock the bureaucratic situation so as not to miss the opportunity to channel these investment flows towards concrete projects, while maintaining investor confidence in a market that, despite everything, continues to demonstrate its vitality.
Notizie.it editorial team