Despite international tensions, the Italian commercial real estate market continues to prove resilient. Investments totaled €2,8 billion in the third quarter of 2024, bringing the annual total to €6,1 billion.
Thanks to the stability of the country system and positive indications regarding the cost of money, a 2024 closure is expected that could confirm the robustness of the sector, despite the international context.
These are the main insights that emerged from the analysis carried out by the WCG – World Capital Group Research Department on the trend of the Commercial Real Estate market in our country.
A cross-sector growth
All major asset classes recorded growth compared to both the same period in 2023 and the previous quarter, with the exception of the Other sector (which includes Living, Healthcare, and alternative investments), which remained stable.
Office: consistent performance
The Office sector accounted for nearly 18% of total investment volume in the third quarter of 2024. Net returns remained stable at 4,1% per Milano and 4,6% for Rome. The take-up showed a good performance, with an absorption of 100.000 sq m in Milano and 60.000 m2 in Rome, in line with the levels reached in the first six months of the year. Rents also lease remain stable in the main cities.
Hospitality in the spotlight
The hospitality sector continues to attract investor interest, representing 15,4% of total investments in the first half of the year, equal to approximately €430 million. The stability of prime net yields in prime locations at 4,5% and in secondary locations demonstrates how tourism is driving the recovery.
Logistics: confirmations and continuity
The logistics real estate sector recorded investments of 650 million euros in the first half of 2024, representing 23,2% of the total volume in the commercial sector. Rental fees Milano remain unchanged at €73/m2/year, while prime net yields stand at 5,3%.
Retail on the rise
The retail sector continues to recover, accounting for 37,5% of total investments. In the third quarter alone, the sector attracted investments exceeding €1 billion, particularly in the high street segment, highlighting a renewed interest in quality retail.
Other: waiting for a recovery
The Other sector, which includes assets such as Living, Healthcare, Student Housing, and Senior Living, is still suffering from the contraction of the Living market, which is unable to be offset by alternative sectors such as Student Housing and Senior Living. Investment volume in this sector represents only 6,1% of the total.
“The uncertainties linked to the current international crises and the upcoming US elections make
the difficult forecasts,” said Marco Clerici, Head of Research & Advisory at WCG.
“However, the confidence shown by investors towards Italy encourages us to look to the future
with optimism.”