Investment
In the second quarter of the year, the investment market reached 1.66 €Bn, in line with the volume of the first quarter of the year and 29% higher than Q2 2023. The first half of 2024 reached nearly 3.5€Bn, a 50% increase from the same period in 2023, indicating a moderate recovery supported by the ECB's rate cut in June. Hospitality and Retail were the top-performing sectors, contributing 36% and 24% of quarterly volumes. Foreign investments rose to 53% in Q2, bringing the half-yearly share to 50%.
Office
With 306€Mn invested in Q2 24, the Office sector have decreased in respect to the first quarter of the year, highlighting investors' cautious attitude towards this asset class. Rome is gaining interest and thanks mainly to a sizeable transaction has surpassed Milan. The occupier market continues to perform positively in Milan with 76,000 sqm and slightly below the 10-year average in Rome with 33,000 sqm. Both markets are characterized by small to medium-sized transactions, with a focus on sustainable offices and prime locations.
Logistics
In the second quarter of the year, the logistics sector recorded an absorption in line with the volume recorded in the first quarter, with 555,000 sqm. The total absorption for the first half of the year, amounting to 1.1 Mn sqm, reflects a 27% decrease compared to the first half of 2023, which was the best semester ever alongside the first half of 2022, but still in line with the five-year average. On the investment side, the logistics and industrial sector is constrained by a limited supply of products that meet institutional investors' expectations, registering a 49% decrease in volume in the second quarter compared to the first. Nevertheless, the logistics and industrial sector remains highly attractive, accounting for 16% of the investment volume since the beginning of the year, totaling 550€Mn.
Retail
In the second quarter of the year, 4 transactions were concluded for a volume of 405 €Mn, among which RomaEst shopping centre deal stands out. The volume transacted in this quarter is about 7 times higher than in the first three months of the year. Active investors are mainly interested in the potential returns generated by retail assets and are joined by end-users whose business plans include the acquisition of strategic properties.
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.
