The growth and stabilization of the real estate market contribute to the development of investment funds.

Real estate funds in Italy are following the global trend of growth, and according to the Scenari Immobiliari report, they are expected to reach a volume of 127 billion euros by 2023 (+3.2% compared to 2022) and 132 billion euros by 2024, with an increase of 3.9 percent.

According to the report by Scenari Immobiliari and the research by Casadei, in 2023, the expansive cycle of Italian real estate funds continued, with the managed assets in Italy approaching 12% of the total in the European Union. The direct assets owned by 630 active funds amount to 127 billion euros, which represents an increase of about 3.3% compared to the previous 12 months. The reduction in debt is defined by a lower need for liquidity, associated with decreased investments, as well as a more active use of own resources to cope with the rising cost of debt.

“The Italian fund sector continues its growth trajectory, and the positive figures recorded in 2023 are expected to persist into 2024, with NAV and assets increasing by 2.7% and 3.9% respectively,” commented Francesca Cirnstein, CEO of Scenari Immobiliari. “We anticipate that by 2024, the volume of funds in our country will reach 132 billion euros, assuming the number of funds increases by 20 units, bringing the total to 650. According to our research, offices remain the preferred asset class for Italian real estate funds, accounting for 58% of total managed assets, while the retail sector comes in second with 13%. This year, the positive trend in residential and logistics real estate continues, with the two segments together making up just over 15% of the total volume, although they are growing.

Despite the upward trend in the last quarter, forecasts for the end of the year suggest reaching a figure of 5.5 billion euros, which is significantly below expectations. The second half of 2024 is expected to be characterized by more active investment activities. The Italian market remains attractive, with international capital dominating the overall volume of investments. Milan andRome continue to attract capital, although regional markets are becoming increasingly dynamic.

Forecasts for NAV at the end of 2023, based on data from managers and semi-annual reports, suggest reaching a figure of 112 billion euros, which represents a 6.7% increase compared to the previous year. The debt of the fund system amounts to 57 billion euros, which is approximately 45% of the assets. The return on equity (ROE) is 2.3 percent.

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