Share: Share with Email

Italian Real Estate Overview Year End 2020

Raffaella Pinto • 24/02/2021

There is still a great deal of uncertainty over the year-end final figure and on estimates for 2021. There’s a growing consensus that activity will turn to be more robust from the second quarter onwards and significantly stronger in 2022, thanks to the stimulus provided by the support measures.

The start of the vaccination campaigns is affecting the medium-term prospects favorably, but the timing and intensity of the recovery remain uncertain. In Italy, the higher than expected growth in the third quarter of 2020 demonstrated the economy’s strong capacity to recover.

While there are no easy answers at this uncertain time, we remain focused on keeping our clients informed on the continually evolving commercial real estate landscape in Italy. In this report, we look at the market evidence from the second half of 2020 and establish an overall picture for the whole year. The pandemic has affected the property sector and it will leave a legacy for the industry, opening up to new opportunities that have materialized, as well as posing real challenges to the industry.

From the living sector to logistics and datacenter, 2020 witnessed a shift from the “traditional” real estate to new asset classes, more related to the macro trends affecting society. The living sector is the rising star of the year. Covid-19 has been an accelerator of an already ongoing process, that is now set to strengthen. The investment volume was more than four times that invested in 2019. We are facing an increasing number of investors placing the living sector on the top of their agendas.

Logistics is confirmed as the hotspot for all investors, a must have, backed by strong fundamentals. Within logistics, data center is proving attractive for a number of international investors although the Italian market is still at a very early stage. Despite that, Milan has a sizable upside for operators and cloud service providers alike, reflected in the increased demand for datacenter development in Milan.

Hospitality and retail are the most challenged sectors, with the latter experiencing an unprecedented cooling of investors’ demand driven by the worsening fundamentals linked to the pandemic and to e-commerce. Hospitality, on the other side, despite performing poorly compared to 2019, is still attractive for opportunistic investors and hotel operators. As a matter of fact, the latter still share a positive outlook on Italy as highlighted in the survey we carried out in October on a sample of national and international hoteliers active in the Italian market. There is still strong long-term confidence and desire by hoteliers to continue their expansion into the Italian market.

Office is the evergreen, attracting the largest share of capital both domestic and international which invested almost half of the total volume for the year: approximately €4 Bn. Investors are still cautious on the long-term view, but they are starting to look for opportunities. Core and core + are confirmed as the most resilient target and a number of deals took place in the second half of the year in both Milan and Rome, with a slight contraction for prime yield.

Overall, 2020 ended with almost €9 bn invested in the CRE in Italy, 30% below last year’s volume but also one of the best years ever over the past 20 years.

The huge liquidity available in the markets is continuing to drive investors toward real estate and this will not change in 2021. Setting growth plans to address the changes we are experiencing in society will be the most advantageous route to take (i.e. interventions under NGEU).


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.
Carlo Vanini • 20/10/2021
H1 2021 Italian Overview
Insights • AI

Italian Real Estate Overview H1 2021

"This is the time to invest in Italy” - Jamie Dimon, Chairman and CEO J. P. Morgan. This sentence summarizes the momentum Italy is facing at mid-21: confidence is back, there is money to deploy for the structural reforms we need to fully recover and there’s still huge volumes of capital for real estate.

Raffaella Pinto • 28/07/2021
Piazza Venezia, Rome, Italy

Italy MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly Italy commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Raffaella Pinto • 27/07/2021
investment card
Insights • Investment

Six Tips from Italian Real Estate

The beginning of 2021 marked the same trend recorded at the end of 2020 for real estate sector in Italy, highlighting a 33% drop in investments compared to the same period of the previous year.


Cushman & Wakefield and GVA Redilco advise on the sale of Crespi 26

Cushman & Wakefield and GVA Redilco, assisted Hines as advisors in the sale of ’Crespi 26’, an independent, modern building in Milan.

Raffaella Pinto • 14/07/2021

via del Babuino Rome
Cushman & Wakefield successfully finalizes the sale of a prime asset in the heart of Rome

Cushman & Wakefield successfully finalizes the sale of a prime asset in the heart of Rome
Another encouraging sign from the retail sector: a new foreign investor enters the Roman market with an investment in the high street retail sector.

Raffaella Pinto • 08/07/2020

Hotel Baglioni
The Hotel Carlton Milan

The Italian Hospitality team of Cushman & Wakefield, acted as advisor for Reale Immobili S.p.A. for the search and selection of a new operator for the management of The Carlton Hotel Milano, 5-star hotel L, located in the heart of Milan's Fashion District, in Via della Spiga, the most famous shopping street in the city.

Raffaella Pinto • 01/07/2020

CPPIB in an important investment for the new "Milan Innovation District"

Cushman & Wakefield’s Italian & International Capital Markets Teams have advised CPPIB on their investment in an Italian real estate fund dedicated to the development of Phase 1 (West Gate Area) of the Milan Innovation District (MIND).

Carlo Vanini • 03/08/2021

Cushman & Wakefield Health Challenge: A Project that Combines the Welfare of its Employees with the Wellness of the Planet

The first edition of the “Cushman & Wakefield Health Challenge 2021” was successfully concluded. The initiative was launched in Italy, following the World Day for Safety and Health at Work, on April 28th.

Paola Mangia • 16/07/2021

Centro Commerciale
Customers Want To Return To Shops

The desire to go shopping in shopping centres is growing, thanks to the vaccination campaign that is proceeding quickly and a general improvement in sentiment, confirmed by the data on visitor flows recorded in the first 3 weeks of reopening on holidays and pre-holidays.

Paola Mangia • 13/07/2021

Hotel InvestorBeat


750x456 hotel President  Lecce
Operator search and selection for Hotel President in Lecce

The Italy Hospitality team is appointed to advise on the search and selection of a new operator for the management of the Hotel President, a 4-star hotel located in the city centre of Lecce, Puglia.

Dario Leone • 11/05/2021

Maggiolina card

Cushman & Wakefield has assisted the Pension Fund for the employees of UniCredit Group, in the disposal of the residential complex "Maggiolina Living" located between Porta Nuova and Bicocca in the Milan area.


Via Ceresio 7/9, Milan
Antegnate card


Get in touch with one of our professionals.