Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
covid 19 covid 19

Insights

COVID-19: The Italian Perspective

Covid-19 Information and analysis on what is happening in the real estate markets in Italy.

While the Covid-19 pandemic is quickly spreading all over the world, Cushman & Wakefield continues to be close to its Customers, by providing information and analysis concerning all that’s happening in real estate markets. Our European Newsletter devoted to this issue contains interesting thoughts about the Italian market we now want to delve into, through the voice of our experienced professionals in the field.

However, before letting them speak, here’s a few hints to guide you in reading. Let’s start with Raffaella Pinto that, in her note, “Resuming our growth, In a sustainable way”, after a recap of the present situation, offers some insights about what the main areas of interest for investors and users in the future of our sector could be. This because, once this emergency will be over, it’s highly likely that things will change, permanently. The nature of the economic measures that will follow will be critical for the process of laying the foundations for a restart, but we should also consider this forced stop to our operations an opportunity to reflect on the future direction of our sector.

All real estate sectors have been hit by the pandemic, in different ways and with a different degree of intensity. We want to highlight in particular the retail market, that was already experiencing great changes, and the hospitality sector, a sector that was growing greatly as a result of a record year for real estate investments in 2019.

In the note “Retailers and operators ready to change”, Thomas Casolo and Carmen Chieregato talk about retail, and in particular of how retailers are dealing with the temporary closure of their businesses and how dialogue with their Properties and the aid they are expecting from the Government are, at least in part, helping them to face this difficult moment. In the note “Retail investments: a road that is still winding”, Andrea Orsa and Eleonora Galloni observe that investors, after a promising beginning of the year, especially because of the investment opportunities in the bigger shopping malls, have suspended and/or ended their operations. The high street sector has slowed down, but operations on well-placed assets will continue.

Real estate investments in the hotel industry will slow down, after the excellent performance of 2019 but, despite this, Dario Leone tells us in “Investments on hold, opportunities to transform the hotel industry offer” that this moment can also represent, for the sector, an opportunity to speed up the market’s transformation on the offer’s side. Hotel operators are, indeed, still keeping a positive outlook on future developments, concerning new structures as well as those already existing, a sign that their “long term view” is still a positive one.

Facing the “Challenges and opportunities” in the logistics sector, Alessandro Mancini and Marzio Granata highlight how the logistics and industry sector, despite some slowdowns, displays a higher degree of resilience, with those sectors tied to activities that are of strategic importance to the State, such as the food industry and Data Centers, remaining especially strong. Long term perspectives are positive, also taking into account the return to Italy of a share of industrial production. The greater solidity of the “real” component of the sector has been confirmed by investment activities, as Carlo Walder tells us, that confirm how operations are still moving forward, notwithstanding the slowdowns caused by the “physical” issues caused by the pandemic. Some operators, in particular those involved in e-commerce, GDO and pharmaceuticals, are going to ask for more spaces, with new opportunities resulting from this, for investors and developers alike.

In 2019, the office sector, in Milan and Rome, closed the year with record volumes of absorption and a limited Degree A level of offer. We therefore think that those markets will be more resilient when facing this crisis, compared to the previous economic recessions. In the note “Smart-working will change the workplace”, Alessandro Serena and Cesare Lombardi underline how the office sector is also being thought over by operators: Corporates are asking themselves what will the economic impact on their businesses be and, as a result, what consequences will it have on occupied spaces. Properties are playing for time, waiting to understand how to answer to the request of new stimuli. We could be looking at an increase in availability in the medium term that, alongside demand, could slow down the leasing spree. On the investment front, in the note “Office investments: more caution” Sara Ravagnani tells how investors will be more careful than they were over the course of the previous months, but their interest will remain, whether as core subjects or opportunistic ones.

In “Workplace: what transformation?” Lamberto Agostini observes how a period of forced home-bound work is allowing us to overcome inertia and accept what has been, for a long time, a normal manner of working, at least for some. Today’s managers have noticed the advantages in productivity, health and well-being, while businesses will be able to experience higher savings margins on their expenses. In the future, offices will become, above all, places to meet, share and socialize.

Finally, Carlo Vanini comes full circle with more nuanced remarks in “A difficult year, but the fundamentals remain” where he demonstrates how the market is rapidly moving towards a new cycle in which the real estate sector will keep being favoured over other asset classes, with a premium on shares and treasury bonds. But it will be a different market.

RELATED INSIGHTS

couple with face masks on Milan street
Insights • Economy

Italy Real Estate Market View

A regular update on the commercial real estate market in Italy.
Raffaella Pinto • 23/09/2022
H1 2022
Insights

Italian Real Estate Overview H1 2022

The first half of the year has been quite an eventful period for the world, with some countries ending up in domestic political turmoil, such as UK and Italy. Indeed, in July Italy experienced the collapse of Prime Minister Mario Draghi's national unity government leading the President Mattarella to dissolve the chambers and call new elections for September 25th. Combined with that, the war in Ukraine, the geopolitical turmoil, the energy crises, rising inflation and tightening policy from central banks have all resulted in warns of recession for the global economy. For real estate it means that the low-rate environment is a memory of the past and investors and banks are preparing to face a not-negative interest rate scenario for the upcoming months.

But it will be a story for the next part of the year, while first half ended posting positive outcomes, both for the economy and the property sectors.
Raffaella Pinto • 01/08/2022

RECENT NEWS

WANT TO KNOW MORE?

If you would like to find out more about our specific expertise, or discover how we could work with your company, please contact a member of our team – we’d be delighted to hear from you.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS