Institutional portal - Municipality of Milan

The territory of Milan divided between the central and external areas to support the redevelopment processes. New reductions introduced, in favor of environmental quality and access to housing

Milan, March 11 2023 - Implement the relevant regulatory provisions, also in consideration of the strong increase in the values ​​of real estate investments in the city in recent years. At the same time, follow an equitable and redistributive principle and continue to encourage urban regeneration processes especially in less central areas. These are the criteria that guide the updating of urbanization charges, decided with a recently approved council resolution, which will then move on to discussion in the city council.

The parameter used for the update is the Istat index relating to the price of urbanization works, i.e. the cost of building a residential building: the increase accumulated to date stands at 37,92%. A value which, based on the data from the building practices presented during 2021, corresponds to an annual budget increase of approximately 20 million.
Without prejudice to the objective, the Municipality has however decided, for the first time, to differentiate the weight of the contribution burdens so as not to penalize the redevelopment interventions in the urban regeneration areas, dividing the territory of Milan into two large bands: the more central, corresponding to the historic center and the immediately adjacent area, and that which is located beyond the external ring road, which is also decidedly larger (with a surface area equal to 84,13% of the total).

The basis of the calculations useful for balancing is the different urban planning load in the two bands: the central one is affected by the maintenance costs per square kilometer (for example of roads, furniture, services) which are on average double, the greater attractiveness for the so-called city users, the higher densities housing and concentration of services.

It should also be remembered that 90% of interventions in the city take the form of renovation, redevelopment and replacement of existing buildings, a case for which a cost reduction of up to 68% is already foreseen. As for new construction interventions, which represent the residual part of the total, the revaluation of charges in the entire external area will remain limited to 10%, and will only reach 113% in the central part.

“Parameterizing the charges based on a regeneration perspective, and therefore also on the territorial area, represents a real revolution, the introduction of an absolute novelty - comments the urban regeneration councilor Giancarlo Tancredi -. To avoid a decrease in overall revenue, but also to have a negative impact on investment processes, it seems correct to review the calculation criteria, increasing in the central area and weighing as little as possible on the others, where we want to encourage regeneration projects. This also responds to the growing costs of maintenance of urbanizations in central areas, where housing and work flows are more substantial". “I would add - concludes Tancredi - that the provision also supports carbon neutrality building interventions, for which we foresee significant discounts”.

Today for new residential buildings the basis for calculating charges is 23,97 euros per cubic meter (primary urbanisation) plus 38,02 (secondary), which with the update increases to 51 euros/m81 (primary) plus 26 (secondary) in the central area and at 42 euro/mXNUMX (primary) plus XNUMX (secondary) in the peripheral area.
An example: the charges relating to a newly built residential building in the central area of ​​approximately 3 thousand m30 of floor space (557.910 apartments) currently amount to 1,188.600 euros, if updated to 612 million euros; for the same building in peripheral areas, if the current charges are exactly the same, the updated ones will amount to XNUMX thousand euros.
In the case of renovation, however, for the same building the costs currently amount to 178.531 euros, which will become 380.160 in the central areas, or 195.840 in the external areas. The renovation will in fact continue to benefit from the planned reductions.

Not only will the reductions already applied today remain in force, but new ones are also planned, which reflect the Administration's objectives from an environmental point of view and the guidelines underlying the drafting of the PGT which came into force in 2020: in particular, in In the case of buildings that meet the carbon neutrality criteria, a 20% reduction in the construction cost is envisaged if intended for private functions, and by 50% if they host services affiliated with the Municipality.
For housing services rented at a discounted rate, a reduction of 50% is envisaged for affiliated university student residences.  
Reductions for private services have been updated: total reduction if covered by an agreement and between 80% and 90% if recognized as being of public interest. Those for works in compliance with the principle of hydraulic and hydrological invariance with consequent water saving have been confirmed, for the remediation of contaminated buildings and soils, for the use of innovative protocols and technologies for the tracking of waste and construction site by-products (among 5 and 15%).  
The increases instead concern the residential recovery of attics (plus 10% on the entire territory), logistics or road transport interventions (plus 50%) and in the case of consumption of agricultural land (from plus 5 to plus 30%).
Finally, the criteria have been established to quantify the additional charges for abandoned properties, which are equal to 100% of those already due for the share of additional volume. For interventions exceeding 2 thousand mXNUMX a further contribution is due.