Record real estate investment in logistics in Italy

In Italy, €3.6 billion was invested in commercial real estate between January and September 2023. The Italian market showed a 27% growth in the third quarter of this year, which is still lower than the same period in 2022. Here's a look at how the commercial real estate market is evolving and what scenarios we can assume for the future based on analysis by the Dils research team.

Italy sets record investment in logistics

Investments in industrial real estate related to logistics and distribution are continuing in line with the stable trend that began since the start of the pandemic. Recent research by the Dils research team has set a new record for logistics, especially in the segments' 'healthcare and residential real estate. In the first nine months of 2023 alone, around €1 billion was invested in this real estate segment.

Investment in commercial real estate is growing more slowly, along with what is happening in other major European markets. However, investment in office real estate is not out of the woods, with a total investment of €492 million since the beginning of the year, of which around €80 million has been invested in the last interval.

Of the Italian cities, Verona stands out in particular with rental rates and initial rents rising to €55/sqm per year. In Milan, Rome and Bologna, the cost is around 65 euros/sqm per year. In Milan' 'concentrated 80% of residential real estate investments, amounting to 541 million euros from January to September 2023.

What direction is the Italian real estate market heading

The third quarter of 2023 (July-September) was marked by an increase in investment volumes. Despite an uncertain economy and the European central bank raising interest rates, the real estate market in Italy is generally holding up and bringing hope for the future. According to an analysis by the Dils research team, the current situation 'allows us to consider next year as a period of greater stability in the investment market with positive prospects for the future, provided that investments are made in the real needs of Italy. For example, some items should be increased' 'Public spending such as: education (new campuses for students to complement the outdated public offer); health (solutions for the population in the context of aging as well as a greater focus on wellbeing); digital infrastructure.