Investment
Investment activity started on a solid footing, with total volumes reaching 3.05€Bn in Q1, supported by improving market confidence despite a more uncertain macro backdrop. Cross-border capital accounted for circa 65% of volume: domestic capital remained strategically important, providing depth and liquidity.
Office
The office markets in Milan and Rome remained highly selective in Q1 2026, characterised by constrained supply, polarised demand and a continued focus on central, high-quality assets. Occupier activity is concentrated in core locations, while peripheral submarkets continue to show weaker absorption. Investment volumes totalled circa 190€Mn in Milan and 240€Mn in Rome, reflecting a cautious start to 2026. Liquidity remains concentrated in prime and Value-Add/Core+ assets.
Logistics
In Q1 2026, the logistics market posted a strong start to the year, with take-up reaching circa 811,000 sqm, up +69% YoY. Investment volumes reached circa 410€Mn, down versus Q1 2025, reflecting a softer start to the year, although investor appetite remains solid, focused on prime logistics assets and selective opportunities.
Retail
By early 2026, Italy’s retail market proved resilient despite a weaker macroeconomic outlook. Prime Milan and Rome locations remained solid, with limited supply sustaining rents at €20,000 and €16,000/sqm/year. Demand continued to favor lifestyle, sportswear and beauty brands. Retail led investment activity in Q1 2026, capturing 33% of volumes (~€1bn), with stable prime yields and slight compression in retail parks.
Hospitality
Comprehensive analysis of Italy's hotel investment landscape, performance metrics, and transaction trends for the second half of 2025. Powered by Cushman & Wakefield's proprietary data and market expertise.
Hotel investment in Italy reached its highest level in a decade in 2025, €2.5 bn, the highest number recorded since 2007. Value-add strategies accounted for 45% of deals, with the luxury segment absorbing 48% of total capital deployed.
Italy closed 2025 as the top-performing country in Europe for RevPAR growth since 2019 (+53%), reaching €159, driven by sustained rate increases (ADR +55% over the same period). Resort destinations outperformed urban markets, with 5-star and luxury delivering particularly strong results.
Hotel demand continues to expand, supported by growing international tourist flows and resilient domestic consumption. Supply growth remains moderate at just +0.2% YoY, generating a favourable structural imbalance that underpins occupancy levels and pricing stability across the market.
