Investment
Q2 2025 delivered another strong performance, with total investments up 45% from the same period in 2024. Hospitality and Retail led the way, capturing 36% and 27% of total capital, respectively, while Healthcare attracted a solid 11%. Foreign investment continued to drive the market, especially in Retail, Hospitality, and L&I sectors. Meanwhile, domestic investors gained momentum, narrowing the gap with their international counterparts.
Office
In the second quarter, the office market showed contrasting trends between Milan and Rome. Milan experienced strong demand in the first half of the year, primarily driven by smaller transactions for high-quality spaces in the CBD. In contrast, Rome recorded lower but more selective take-up, with notable activity from the Education sector. Investment activity remained focused on both cities, with Milan again leading in quarterly volumes. Investors continue to adopt a selective approach, targeting core+ assets and properties with potential for repositioning or conversion, aiming for medium- to long-term value creation.
Logistics
In the second quarter, the logistics sector recorded 477,000 sqm of take-up, reflecting resilient demand despite a slight contraction compared to the 2024 average. 3PL operators remained the dominant players, accounting for 62% of total volume. Emilia-Romagna led the market, driven by a significant owner-occupier transaction. Investment activity slowed during the quarter (€150Mn), yet market sentiment remains positive, supported by a solid pipeline for H2. Overall, the first half closed with a 30% year-on-year increase, underpinned by active value-add and core+ capital.
Retail
The second quarter of 2025 confirmed growing interest from operators, pointing to an Italian retail sector characterized by optimism and marked by the entry of new players into the market. Rental rates show increasingly differentiated market dynamics on a national scale, with marked variations between different geographical areas and product types. Investments are up compared to the first quarter, accounting for 24% of the total invested in the first half of the year.
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.
