C&W. Italian Real Estate Overview 2021

Investment volumes stand at circa 10 €Bn, +11% on 2020 and we start 2022 with preliminary agreements signed for over 2€Bn. Capital flows for real estate are still robust and Italy is well positioned to attract them, thus 2022 is projected as another good year.

The office market reacted positively throughout the year in both Milan and Rome, with an annual absorption which has returned to healthy pre-pandemic levels. Specifically, Milan reflected an increase of 11% on the 10-year average and circa +30% on 2020, while in Rome, figures were roughly 15% above the 10 year average and +40% on 2020.

Industrial & Logistics ended the year as the first asset class per investments, standing at almost 3 Bn Euro and take-up at 2.5 Mn sqm has been outstanding for the 5th year in a row.

Institutional investors continue to increase their positioning in the Living sector, building new stock by acquiring lands mainly in Milan. It is catching great interest from both domestic and foreign investors. Volume invested stood at around 635 €Mn.

The Retail sector, after a weak first half due to the restrictions, recovered in the second half from both occupiers and investors’ perspective thus leading to a more optimistic outlook for 2022.

Hospitality continue to show signals of recovery and confidence grows as we are approaching the end of restrictions from the pandemic. With 1.5 Bn Euro of investments, 2021 volume is one of the highest in the past years (excluding 2019).

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