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
The Italian hotel investment market showed strong momentum in the first half of 2025, with volumes reaching over 1.5 billion, up 85% year-on-year. This marks a significant rebound compared to H1 2024 and already exceeds the full-year average of the previous year. The sector remains attractive, driven by robust performance in key cities like Rome and Venice, which together accounted for 46% of national volume.
Prime yields remained stable in H1, particularly for high-quality assets in the luxury segment, while slight compression was observed in trophy transactions. Given the macroeconomic environment and tight lending conditions, yields may rise for lower-quality assets, but luxury assets are expected to remain resilient. The outlook for the second half of 2025 remains positive, supported by strong demand, a solid pipeline, and sustained interest from international investors.
