Investment
The year opened on a strong note, with investment volumes rising by 44% compared to the same period in 2024. The Industrial & Logistics and Hospitality sectors led the charge, each accounting for 25% of total investment volume; Retail followed closely, capturing a 22% share of overall investments. Foreign capital remained a key driver of market activity, continuing the momentum seen at the end of last year.
Office
A cautious stance in office investments characterized Q1, reflecting a broader shift among generalist investors toward alternative asset classes. Milan dominated the landscape underscoring its continued appeal as Italy’s premier commercial hub. On the leasing side the dominant theme remained quality with many companies relocating to modern, ESG-compliant offices. In Rome the trend of converting office assets into hospitality spaces has become firmly established; demand from the Public sector is increasing.
Logistics
The logistics sector emerged as one of the best-performing asset classes of the quarter, accounting for 25% of the total CRE investment volume. This strong performance was primarily supported by two significant portfolio transactions. Investor demand for logistics-zoned land continues to intensify, particularly for redevelopment into Data Centers, in response to the accelerating expansion of digital infrastructure. The market also recorded positive absorption, with sustained occupier interest in high-quality assets.
Retail
Shifts in retailer behavior paint an optimistic yet nuanced picture of the Italian retail sector during the first quarter of the year. Trends in rental values reveal increasingly diverse market dynamics across Italy, highlighting regional variances that investors should monitor closely. The strong performance on the Investment side demonstrates the retail sector’s ongoing allure to both domestic and international investors.
Hospitality
Second half of the year investment volumes bounced back and hit around 1 €Bn, nearly twice as much as the same time in the previous year and higher than the first half. The annual volume of about €1.5 bn was almost aligned to past year figure. The sector remains attractive due to its strong performance and prospects for 2024 are still positive. Yields increased in the second half to match the overall higher yield situation and the tight lending conditions. This pattern is expected to continue for lower-quality assets in the short term, while high-quality assets in the luxury sector are likely to stay steady. Outlook confirmed positive.
