Italy Market Analysis & Insights H1 2025
Key Highlights:
- Economic Stability Boosts Investor Confidence: Italy's steady GDP growth, moderating inflation, and historically low unemployment— coupled with a rare period of political stability and a more accommodating interest rate environment—are making the country's real estate market increasingly attractive to long-term investor.
- A more supportive macroeconomic backdrop fueled the continued expansion of Italy’s CRE investment market in H1 2025, following the positive trend undergoing since mid-2024. With €5.15 billion, investment marked a surge of 47% year-on-year in volumes, thus solidifying Italy’s position as one of Europe’s leading real estate recovery markets.
- Real Estate Sector Spotlight: Experience-driven sectors emerged as the top-performing asset class in H1 2025, accounting for 54% of total investment volume. Hospitality Booms: €1.5Bn invested (+77% YoY), driven by international capital and key destinations like Venice and Rome; Retail Gains Momentum: €1.24Bn invested (YoY growth TBD), with strong activity in prime high streets and shopping centers. Rents are rising across both segments.
- Diversification into Emerging Sectors: Driven by demographic shifts, digital transformation, and the pursuit of resilient income streams, investors are increasingly diversifying into emerging sectors such as hospitality, student housing, healthcare and data centers. These operationally linked assets are attracting attention for their potential to deliver stable, long-term income with reduced exposure to market volatility.
Stay ahead of the curve with our insights into Italy’s evolving and dynamic real estate markets.
