Right on the outskirts of Milan is the charming town of Pioltello where there is a real estate complex sadly famous for its many judicial auctions. Pioltello is an Italian municipality of 36,195 inhabitants in the metropolitan city of Milan in Lombardy. It is part of the eastern hinterland of Milan, in the Martesana area. We ask Francesca Cardia for more details, specialist teacher in the field of real estate foreclosures and member of the T6 Observatory
Tell us about the Pioltello neighborhood up for auction
We are talking about an extraordinary case, an entire neighborhood up for auction. I will limit my focus to the real estate auctions in Via Cimarosa at number 3 (in the same block there are many other real estate sales, but today we will talk about a single number)
As of today, at number 3 alone, there are 7 apartments in eligible auctions and 57 auction experiments already closed (between successful auctions and unsuccessful auctions due to lack of offers).
But at the same number (with different scales) what types are available?
Well we find both two-room and three-room apartments, often with a relevant cellar. The floor plan typologies have a classic distribution of spaces with a large balcony.
The exteriors have improved thanks to the 110 Bonus, while the internal maintenance status varies from property to property (often in mediocre conditions, as per the findings of the CTU appraisals).
Are the auction prices affordable?
Yes, especially with respect to the values expressed by the Revenue Agency Observatory which provides for economic properties in a normal state of conservation an oscillation in the market value of a minimum of 1,200.00 euros/m2 to a maximum of 1,200.00 euros/m2 1,500.00.
The lowest value of the Minimum Offer is €17,118.00, while the highest value is €91,800.00.
For example, a 65.50 m2 two-room apartment worth €85,150.00 (according to a CTU appraisal) goes up for auction with a price starting from approximately €32,000.00.
The first awards were around 40,000.00/50,000.00 euros, while today we are around 80,000.00 euros for two-room apartments and 120,000.00 euros for three-room apartments.
What is this result due to?
This, which is an important result, is mainly due to the joint effort of the Sales Delegates appointed by the Court and all the public institutions for what has become a Social Housing project for the redevelopment of the entire neighborhood.
Is the Condominium one of the main creditors?
In fact yes, but if he is part of the creditors of the procedure, he will also be paid from the proceeds of the auction sale. In any case, the successful tenderer, having become the owner, will be jointly and severally obliged only to pay the quotas for the current and previous year (art. 63 provisions of the Civil Code). One of the critical issues is being able to have information about it, before participating in the auction, for a timely evaluation. Unfortunately for privacy reasons (we cannot ask for information on other people’s debts) this is not possible and we will have to refer to the indications included in the CTU reports.
Who buys at auction?
Certainly families who want to give themselves the certainty of a roof over their heads and those who intend to make a “Flipping” investment (purchase – renovation – resale) in the medium/long term. Sometimes the interested parties are the same occupants of the other “healthy” properties, also for rental investment purposes because Pioltello is well connected to the center of Milan.
