Investment
Activity accelerated in Q2 2026, with volumes up 66% year-on-year, supported by strong liquidity, renewed foreign capital and several large-scale transactions. Retail led the market, driven by a landmark transaction, while Industrial & Logistics recorded a sharp rebound as portfolio deals returned and investor confidence strengthened. Foreign investors accounted for 77% of quarterly volumes, although domestic capital continued to support activity across sectors
Office
In the second quarter, the office market remained subdued in both Milan and Rome; though quarterly take up showed and improvement, total H1 figures were below the long term averages in both cities. Prime rents showed further growth in Milan +10% YoY but stability in Rome. Investment activity remains concentrated in the two core markets, with Milan recording the highest volume of the quarter, albeit in a context of contained volumes and a prevalence of private and domestic capital. Investors maintain a selective approach, focused on assets with repositioning or conversion potential, offering value appreciation prospects over the medium to long term.
Logistics
The logistics sector recorded a strong performance in H1 2026, with take-up rising 50% YoY to the highest first-half level on record. Demand broadened, with a growing contribution from retail and large-scale distribution players alongside 3PLs. Investments saw a sharp acceleration on the previous quarter supported by the return of portfolio transactions with figures for H1 closing with a 44% increase YoY. Prime rents in Milan and Rome rose to 72 €/sqm/year (+3% QoQ).
Retail
Retail segment remained resilient in Q2 2026, with prime high street rents stable across leading luxury and mass-market destinations. Leasing activity remained selective, as occupiers focused on premium locations while elevated occupancy costs and limited availability constrained deal completion. On the investment side, retail was the strongest-performing investment sector, driven by a landmark luxury retail transaction. Strong investor appetite across high streets, shopping centres and retail parks supported yield compression.
Hospitality
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.
